ANGLO American said today it had finalised an agreement with Chile’s Codelco for the joint development of the Los Bronces and Andina mines.
The partners said their joint operating company would unlock 120,000 tons a year in additional copper production over 21 years, equivalent to 2.7 million tons. A memorandum of agreement to form the joint company was first announced in February 2025.
Duncan Wanblad, CEO of Anglo said on Wednesday the agreement was waiting on the “timely” award of permits “which will allow us to begin delivering the additional volume and value that we are targeting, for the benefit of all our stakeholders, and for Chile”.
While there is always a degree of jeopardy in the receipt of approvals, the joint venture’s applications with Chile come only months after Chile’s Second Environmental Tribunal annulled the environmental permit for the $3.2bn expansion of the Collahuasi copper mine, which is jointly owned by Anglo (44%) and Glencore (44%).
The tribunal sided with local indigenous associations, citing that the initial approval process “lacks proper justification” regarding marine ecosystem impacts, and did not appropriately consider community feedback. While there is no immediate impact on production at Collahuasi, the reversal was nonetheless an unwelcome surprise for Anglo and Glencore.
The joint development of Los Bronces and Andina is expected to generate more than $5bn of additional pre-tax value for Anglo American Sur (AAS), Anglo’s local joint venture company, and Codelco, the partners said in September. AAS and Codelco will be able to coordinate mining of their respective orebodies in terms of shared surface infrastructure.
Relative to production from the partners’ mines as standalone entities, the joint venture will yield a 15% cost reduction with “minimal capital expenditure”. The combined production from Los Bronces and Andina in 2024 would rank in the top 10 copper mines globally and once adjusted for the incremental 120,000 tons annually is expected to rank within the top five, Anglo said previously.
“By integrating the Los Bronces and Andina mine plans, we are unlocking one of the most significant copper adjacency opportunities in the world,” said Wanblad today.
“Adjacencies such as these are rare and they highlight the role that responsible, partnership-led development can play – in this case supporting Chile’s ambition to lift national copper production to six million tonnes per year by 2030,” he said.
