Anglo American, Codelco to add 2.7Mt copper with no new mine

Anglo American (LON: AAL) and Chilean state-owned miner Codelco have finalized a landmark agreement to combine development plans at their neighbouring Los Bronces and Andina mines, unlocking at least $5 billion in value and adding 2.7 million tonnes of copper production over 21 years.

The joint mine plan creates a major copper district northeast of Santiago and is expected to deliver an average 120,000 tonnes of additional low-cost copper annually, split equally between the partners, with minimal capital investment. The project remains subject to environmental approvals and other customary conditions, which the companies expect to secure by 2030.

“The next important milestone for Los Bronces-Andina is the timely receipt of the permits which will allow us to begin delivering the additional volume and value that we are targeting, for the benefit of all our stakeholders, and for Chile,” Anglo CEO Duncan Wanblad said.

The agreement highlights a growing trend among major miners to maximize output from existing assets through collaboration rather than costly greenfield developments. By integrating the Los Bronces and Andina mine plans, Anglo and Codelco aim to strengthen Chile’s position as the world’s largest copper producer while supporting the country’s goal of increasing national copper output to six million tonnes annually by 2030.

New copper district

Codelco chair Bernardo Fontaine said the partnership would make better use of existing infrastructure while generating greater returns for Chile and maintaining operational discipline.

“It is a tangible example of how collaboration can generate greater value without compromising the thoroughness, discipline and commitment that Codelco demands today,” Fontaine said.

The additional production and economic benefits remain years away and depend on regulatory approvals. Chile’s environmental review process for large mining projects can be lengthy, and any delays could push back the anticipated start of the joint mine plan.

The agreement follows years of negotiations between the companies and their partners, Mitsubishi Corp. and Mitsui & Co., and represents one of the largest copper cooperation agreements globally. The adjacent operations contain some of the world’s most significant copper resources and offer substantial opportunities to optimize mine sequencing, infrastructure use and future development.