Anglo American plc announced on Thursday that it has signed a memorandum of understanding (MoU) with Chile’s state-owned mining company, Codelco, to develop a joint mine plan for two adjacent copper mines in Chile: Los Bronces and Andina. This collaboration, facilitated through Anglo American’s 50.1%-owned subsidiary, Anglo American Sur SA (AAS), is set to significantly increase copper production with minimal additional capital investment, offering the potential to unlock a projected pre-tax net present value (NPV) uplift of at least $5 billion. This value will be shared equally between the two companies over the life of the agreement.
The joint venture will involve the creation of a new operating company, jointly controlled by AAS and Codelco, which will coordinate the execution of the mine plan. The two companies will work together to optimise the processing capacity of both operations, sharing equally in the resulting copper production, along with any associated costs or liabilities. However, each company will retain full ownership of its respective assets, including mining concessions and plants, continuing to exploit their respective concessions independently.
Duncan Wanblad, Chief Executive of Anglo American, highlighted that copper is a key focus for the company’s growth strategy, with plans to increase annual copper production to more than 1 million tonnes by the early 2030s. This marks a 30% increase in production. The collaboration between Los Bronces and Andina, which together account for around 2% of the world’s copper resources and reserves, presents substantial synergies. By coordinating operations across both sites, Anglo American and Codelco aim to produce an additional 2.7 million tonnes of copper over 21 years, beginning in 2030.
Wanblad emphasized that while the joint mine plan will drive growth, both companies will retain the flexibility to pursue separate standalone projects, including the development of underground resources, during the term of the agreement. He expressed enthusiasm about the collaboration with Codelco, noting that the joint efforts could create significant additional value for both companies, their joint venture partners, and stakeholders in Chile.
Máximo Pacheco, Chairman of Codelco, reflected on the long-standing relationship between the two companies, citing over 10 cooperation agreements spanning more than 50 years. Pacheco explained that the joint mine plan is a strategic step forward, allowing both companies to increase copper production by nearly 120,000 tonnes of fine copper annually without substantial additional investment. This project would make the combined district one of Chile’s top three copper-producing regions and the fourth-largest globally, contributing significantly to the transition to a decarbonised economy.
Pacheco also stressed that the partnership represents an unprecedented model of public-private collaboration, with the governance structure equally shared between Codelco and Anglo American. Both companies will continue to operate independently, but in a coordinated fashion, ensuring that existing environmental and social commitments are respected. This collaboration will also focus on the protection of high Andean ecosystems and biodiversity.
To guide the implementation of the joint mine plan, both companies have agreed on a set of sustainability principles that will safeguard social programs and environmental responsibilities, reinforcing their shared commitment to both economic growth and responsible mining practices.
