Under the terms of the deal, Codelco will supply copper concentrate, while Glencore will construct and operate the smelter in the Antofagasta region of northern Chile, a major center for the country's copper mining industry. The planned facility will have an annual processing capacity of approximately 1.5 million metric tons of concentrate.
Experts in the sector estimate that a smelter of this scale would require an investment of between $1.5 billion and $2 billion.
Glencore will now conduct a pre-feasibility study, and the two companies expect to reach a definitive agreement during the first half of next year. If the project proceeds, construction is scheduled to begin in 2030, with operations expected to start between 2032 and 2033.
Codelco selected Glencore through a competitive bidding process and has committed to supplying up to 800,000 metric tons of copper concentrate per year to the new smelter for a minimum of ten years.
At present, Chile possesses around 6 percent of global copper smelting capacity and exports a large portion of its concentrate for processing abroad, primarily to countries with extensive refining infrastructure. Expanding domestic smelting capacity is a key objective for the country, alongside ongoing projects such as the $1.7 billion modernization of a smelter operated by state mining company ENAMI.
Codelco Chairman Máximo Pacheco highlighted the strategic location of the proposed facility in the Antofagasta region, noting that it will offer logistical advantages given the concentration of mining activity in the area. He emphasized that the smelter will be built and operated according to high operational and environmental standards.
Pacheco stated: "This initiative will not only benefit Codelco but will also contribute to strengthening Chile's sovereignty and strategic security."
The agreement represents a significant step toward increasing Chile's role in the downstream processing of its copper resources and reducing reliance on overseas smelters.
