Anglo American (LON: AAL) and Chile’s state-owned Codelco have signed an agreement to jointly develop their neighboring Los Bronces and Andina operations, aiming to produce an additional 2.7 million tonnes of copper over a 21-year period starting in 2030.
The joint mine plan is expected to generate a pre-tax net present value (NPV) increase of at least $5 billion, which will be equally shared between the two companies. Despite the collaboration, both Anglo American and Codelco will maintain full ownership of their respective assets, including mining concessions, processing plants, and auxiliary operations, and will continue to extract resources independently.
Codelco’s Andina division, which includes the Rio Blanco and Sur Sur mines, produced 164,500 tonnes of copper in 2023. Los Bronces, one of Anglo American’s key assets, reported an output of 215,000 tonnes that same year.
Codelco already holds a 20% stake in Anglo American Sur, the local unit responsible for operating Los Bronces and El Soldado mines, as well as the Chagres smelter.