Anglo American and Chilean state-owned mining giant Codelco have announced a groundbreaking agreement to implement a joint mine plan for their adjacent Los Bronces and Andina copper mines. This strategic alliance, formalized through a memorandum of understanding (MoU), promises to unlock at least $5 billion in pre-tax net present value (NPV) and significantly boost copper production with minimal additional capital expenditure.

The collaboration centers on the creation of a new, jointly owned and controlled operating company that will oversee the execution of the integrated mine plan. This entity will optimize the utilization of the processing capacities of both Los Bronces and Andina, maximizing efficiency and output. The resulting copper production, value generated, and associated costs will be shared equally between Anglo American Sur SA (AAS), Anglo American’s 50.1% owned subsidiary, and Codelco.

Crucially, both companies will retain full ownership of their respective assets, including mining concessions, plants, and ancillary infrastructure, and will continue to operate their individual concessions independently.

The joint mine plan is projected to unlock an additional 2.7 million tonnes of copper production over a 21-year period, starting from 2030, alongside other operational synergies.

The companies are now focused on completing due diligence and finalizing definitive agreements in the second half of 2025. The agreements will be subject to various conditions, including securing necessary environmental permits and regulatory approvals. In the interim, both Los Bronces and Andina will continue to operate under their existing 2019 cooperation agreement.

Duncan Wanblad, CEO of Anglo American, highlighted the strategic importance of copper in the company’s growth ambitions. “Copper is at the forefront of our growth ambitions, and we already have a clear pathway to more than 1 million tonnes of annual copper production by the early 2030s, a 30% increase,” he stated. “Los Bronces and Andina present obvious and significant adjacency benefits, representing approximately 2% of global copper Resources and Reserves, with approximately 60 million tonnes of contained copper.”

Wanblad also emphasized that both companies will maintain the flexibility to pursue separate standalone projects, including the development of underground resources, in a coordinated manner.

Máximo Pacheco, Chairman of Codelco, underscored the historic nature of the partnership and its potential impact on Chile’s position as a leading copper producer. “Codelco and Anglo American have been good neighbors for decades,” he said. “Today, we have a unique opportunity to rethink the development of this mining district and take a strategic and beneficial step: moving forward with an alliance that will allow us to increase copper production by an average of nearly 120 thousand tonnes of fine copper per year, without any material additional investments.”