The Anglo American logo is seen in Rusternburg October 5, 2015. Picture taken October 5, 2015.
The collaboration will integrate operations at Codelco’s Andina mine and Anglo American’s Los Bronces mine in the Andes mountains. The plan is expected to boost annual copper production by 120,000 metric tons while reducing costs by around 15% per ton. Los Bronces produced 172,000 tons of copper last year, while Andina produced 182,000 tons, bringing their combined output to about 350,000 tons.
The two companies project that the joint program will add 2.7 million tons of copper over a 21-year period. The additional pre-tax value, estimated at a minimum of $5 billion, will be equally shared between Codelco and Anglo American Sur, Anglo’s local unit. Anglo American Sur also includes Japan’s Mitsubishi and a joint venture between Codelco and Mitsui as partners.
Codelco Chairman Maximo Pacheco emphasized the significance of the agreement, stating: "Without major investments, geologists agree on the optimal way to extract the ore — no longer separately from each deposit, but by treating these two deposits as a single one." He added: "It represents a shift in the paradigm of how mining is done, mining that can be carried out collaboratively."
Pacheco noted that Codelco had sought a tie-up between Andina and Los Bronces for decades. The agreement, which builds on a preliminary deal signed in February, is expected to enable new production as early as 2030. The announcement followed a meeting with Chilean President Gabriel Boric and Anglo American CEO Duncan Wanblad.
Analysts have highlighted that Anglo’s greater processing capacity at Los Bronces could benefit Andina, making the integration more efficient. The companies clarified that each will retain ownership of its existing assets. However, they will create a jointly owned company to oversee execution. The next steps include appointing executives and board members, obtaining regulatory approvals, and preparing applications for environmental permits.
Both mines have previously faced scrutiny from environmental groups concerned about possible effects on local water resources and a nearby glacier. Codelco and Anglo American stated they will comply with existing environmental standards as the project moves forward.
The final agreement comes shortly after Anglo American revealed plans for a proposed merger with Canada’s Teck Resources (TECKb.TO), which would also include Los Bronces. If completed, that transaction would mark the largest global mining deal in more than ten years.
Industry observers view the partnership as a significant step in optimizing copper resources in the Andes, improving efficiency, and ensuring long-term output growth while balancing environmental considerations.
