Chile’s Codelco is reportedly set to enhance its financial position and project development capacity through a focus on public-private partnerships (PPPs).

This move is aimed at addressing the challenges of increasing production, which has recently hit quarter-century lows, reported Reuters, citing Codelco CFO Alejandro Sanhueza.

Sanhueza emphasised that these partnerships will become a "pillar of growth" for the company and enable the acceleration of value generation through additional resources.

PPPs are seen as a key strategy for Codelco to diversify risk and attract external financing.

“Our exploration partnerships allow us to attract external financing and capacity, enabling us to accelerate value generation with additional resources beyond those available to Codelco," Sanhueza was quoted as saying.

Codelco's partnerships, including those with Rio Tinto and BHP for prospecting new copper mines, are part of a broader strategy to expand its production capabilities.

The company also holds significant stakes in mines such as El Abra and Anglo American Sur, and has recently increased its stake in the Quebrada Blanca deposit.

Sanhueza outlined additional goals for the partnerships, which include building joint infrastructure, accessing new technology and minimising environmental impacts.

Codelco's collaboration with Anglo American is expected to boost production significantly, with an agreement due to be finalised by September. The company is not only relying on partnerships but is also bolstering its exploration budget.

Sanhueza revealed that the budget has increased to an average of $83m (77.29m pesos) annually for 2023 and 2024, and is projected to grow to $150m annually from 2025 to 2029.

“Codelco has a significant stock of mining resources, which is a privilege in the industry. This collaboration with third parties allows us to make better use of these resources, which are complementary to our own projects,” Sanhueza added.

In addition to these initiatives, Codelco has entered a strategic partnership with I-Pulse to explore innovative mining solutions such as pulsed power for rock fragmentation and precision drilling.

This partnership aims to develop sustainable solutions to the mining sector challenges.