SANTIAGO - Anglo American (JO:AGLJ) PLC and Chile’s state-owned Codelco have signed a memorandum of understanding to create a joint mine plan for their adjacent Los Bronces and Andina copper mines, with the goal of increasing copper production and unlocking an estimated $5 billion in pre-tax value. The collaboration is expected to yield an additional 2.7 million tonnes of copper over 21 years starting in 2030, without significant new capital investment.
The agreement between Anglo American’s subsidiary Anglo American Sur SA and Codelco will establish a new operating company to oversee the execution of the joint mine plan and optimize the processing capacity of both operations. The copper production and resultant value, as well as any costs and liabilities, will be equally shared between the two companies. Despite the partnership, AAS and Codelco will maintain full ownership of their respective assets and continue to exploit their concessions separately.
Duncan Wanblad, Chief Executive of Anglo American, highlighted the strategic importance of copper in the company’s growth ambitions and pointed to the significant adjacency benefits of Los Bronces and Andina. These sites hold approximately 2% of global copper resources and reserves, with around 60 million tonnes of contained copper. Wanblad emphasized that the joint plan will not only increase production but also allow for operational synergies and coordinated development of separate projects.
Máximo Pacheco, Chairman of Codelco, underscored the potential of the alliance to increase copper production by an average of nearly 120 thousand tonnes per year without material additional investments. He noted the strategic step would reinforce Chile’s position as a leading global copper supplier and support the transition to a decarbonized economy.
The companies have also committed to sustainability principles to guide the joint mine plan, ensuring the protection of social programs and existing environmental commitments. The governance structure for the partnership will be equally composed of representatives from Codelco and Anglo American.
The definitive agreements are expected to be concluded in the second half of 2025, subject to due diligence, environmental permits, and regulatory approvals. Until then, Los Bronces and Andina will operate independently based on a 2019 cooperation agreement. This initiative is based on a press release statement and aims to provide a balanced and factual overview of the proposed joint venture.
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