Anglo American and Chilean state-owned miner Codelco have signed a USD 5-billion MoU on a joint mine plan for their respective adjacent copper operations in Chile, Los Bronces and Andina, the London-headquartered mining player said on Thursday.
The agreement aims to boost copper production with minimal additional capital expenditure, generating an estimated pre-tax NPV uplift of at least USD 5 billion to be shared equally.
A new operating company, jointly owned and controlled by Anglo American Sur and Codelco, will oversee the execution of the joint mine plan and optimise processing capacity across both operations. Copper production, value generation, costs and liabilities from the joint plan will be shared equally.
Both companies will retain full ownership of their respective assets, including mining concessions and processing plants, while continuing to exploit their concessions separately.
The joint mine plan is expected to unlock an additional 2.7 million tonnes of copper production over a 21-year period from 2030. The initiative aims to maximise synergies across the site while allowing both companies to pursue separate standalone projects, including underground resource development.
The companies have established sustainability principles to guide the implementation of the plan, ensuring alignment with social and environmental commitments. Due diligence is expected to conclude in H2 2025, with definitive agreements subject to regulatory approvals and environmental permits. Until then, both mines will continue operations under their existing co-operation framework.
Anglo American produces commodities like diamonds, copper, platinum, and iron ore. Founded in 1917 in South Africa, its operations today span six continents.
With the energy transition driving demand for battery materials, global copper demand has been forecasted to soar beyond 30 million tonnes per year by 2030, up from 24.8 million tonnes in 2022.