Anglo, Codelco inks definitive agreement for joint mine plan in Chile
Diversified miner Anglo American has completed a definitive agreement with Chile's State-owned miner Codelco to implement a joint mine plan for their respective Los Bronces and Andina copper mines.
Anglo inked the agreement through its 50.1%-owned subsidiary, Anglo American Sur.
The joint mine plan is expected to unlock 2.7-million tonnes of additional copper over a 21-year period, delivering an average 120 000 t/y of additional low-cost copper production to be shared equally with minimal capital investment required.
The companies expect the move to create at least $5-billion in shared value.
Implementation of the joint mine plan remains conditional on the relevant environmental permits being secured, as well as other customary conditions to final implementation, which should all be finalised by 2030.
Anglo CEO Duncan Wanblad says the agreement with Codelco demonstrates what is possible through partnerships, particularly to unlock compelling industries synergies and deliver significant value for multiple companies.
"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," he adds, referring to Chile's ambition to increase national copper production to six-million tonnes a year by 2030.
By integrating the Los Bronces and Andina mine plans, it will comprise one of the most significant copper adjacency opportunities globally.
Codelco chairperson Bernardo Fontaine says the agreement represents a more efficient and responsible way to develop one of the world's leading copper districts, allowing the companies to make better use of existing infrastructure, capture greater benefits for Chile and move forward with a long-term vision based on operational excellence, sustainability and responsible use of resources.
"It is a tangible example of how collaboration can generate greater value without compromising the thoroughness, discipline, and commitment that Codelco demands today. The Andina–Los Bronces Joint Mine Plan reflects the principles that guide Codelco today: safety; maximizing returns to the State, while ensuring operations remain profitable without increasing debt; putting the house in order with firm leadership and transparency; and strengthening sustainability," Fontaine concludes.
