Anglo American Teamed Up With Codelco To Develop The Copper Mine
Feb 24, 2025
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Anglo and Chile's Codelco have signed an agreement to jointly develop their neighbouring Los Bronces and Andina copper mines, which will allow both sides to increase copper production by 2.7 million tonnes over the 21 years after 2030.
The joint mine will be able to generate a pre-tax net present value of at least $5 billion, which the two companies will share. Despite the partnership, Anglo American and Codelco will retain ownership of their respective mines, including the quarry, the beneficiation plant and ancillary facilities, which will be mined separately.
Andina is Codelco's smallest mine, with the Rio Blanco and Sur Sur mines, producing 164,500 tonnes of copper in 2023.
Los Blancius is a key asset for Anglo, with production of 215,000 tonnes in 2023.
Codelco already owns 10 per cent of Anglo American Sur, Anglo's Chilean subsidiary that operates the Los Blancius and El Soldado mines and the Chagres smelter.
Anglo has refocused its business on copper and iron ore after BHP Billiton's $49bn takeover of Anglo fell through last year.
"Copper is at the forefront of our growth strategy and we are on target to achieve more than 1 million tonnes of copper per year by the early 2030s, representing an increase of 30 percent," Chief Executive Duncan Wanblad said in a statement on Thursday.
Codelco President Maximo Pacheco stressed the importance of the long-term cooperation between the two companies.
"Codelco and Anglo American have been neighbours for decades. For half a century, the two sides have established good relations through more than 10 cooperation agreements, "Pacheco said. "Today, we have a special opportunity to rethink how we develop this mine."
Global mining companies are working together to cut costs and boost production as projects are becoming more complex and costly due to supply chain disruptions, inflation and stringent licensing requirements.
Codelco has worked with private companies in the past, including a 49 percent stake in the El Abra copper mine with Freeport-McMoRan and a 42.3 percent stake in the Agua de la Falda copper project with Rio Tinto.
Last year, Codelco acquired a 10% stake in Teck's Quebrada Blanca copper mine, which will increase production by 20,000 to 30,000 tonnes a year.
The SAN Diego-based miner also plans to work further with private companies to stem the decline in production and reduce debt.
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