Anglo American, Codelco seal $5 bln copper deal in Chile’s Los Bronces and Andina

Published 16/09/2025, 09:10
© Reuters.

Investing.com -- Anglo American (LON:AAL) and Chile’s state-owned Codelco have finalized a deal to jointly develop their neighboring copper mines, Los Bronces and Andina, in a move projected to unlock at least $5 billion of value.

The companies on Tuesday said that the agreement will coordinate operations across the two sites, both located in central Chile, through a joint mine plan that is expected to add 2.7 million tonnes of copper production over 21 years once environmental permits are secured, currently anticipated in 2030. 

The additional output is forecast at about 120,000 tonnes a year, split equally between the two operators.

The companies said the plan will reduce unit costs by about 15% compared with running the mines separately, with minimal new capital spending required.

The projected pre-tax net present value increase of $5 billion will be shared equally between Anglo American Sur S.A., Anglo American’s 50.1%-owned subsidiary, and Codelco.

Combined output from Los Bronces and Andina in 2024 placed the mines among the 10 largest copper producers globally, according to the companies. 

The incremental 120,000 tonnes per year expected under the joint plan would lift them into the top five.

The agreement was unanimously approved by the boards of both companies and follows a memorandum of understanding signed in February 2025. 

A new operating company, jointly owned and controlled, will be established to oversee the plan and optimize processing capacity across both mines. 

Each company will retain full ownership of its respective assets and continue to operate its concessions separately.

The companies said both Anglo American and Codelco will retain the ability to pursue separate standalone projects, including underground expansions, during the term of the agreement. 

Anglo American Sur’s shareholders include the Anglo American group with 50.1%, the Mitsubishi Group with 20.4%, and Becrux, a Codelco-Mitsui joint venture company, with 29.5%.

The deal is subject to regulatory and competition approvals, as well as securing environmental permits before the joint mine plan can be implemented.

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