Anglo American and Codelco expand joint mine plan to boost Chilean copper production

Anglo American has announced a strategic partnership with Chilean state-owned mining company Codelco to integrate operations at their adjacent Los Bronces and Andina copper mines. The companies have signed a memorandum of understanding to implement a joint mine plan, which aims to optimise production while minimising additional capital expenditure. The collaboration is projected to unlock at least $5 billion in pre-tax value over the course of the agreement, strengthening Chile‘s position as a leading copper producer.

By leveraging the existing infrastructure of both operations, the plan is expected to deliver a copper production increase of approximately 2.7 million tonnes between 2030 and 2051. The partnership will be facilitated through a newly formed operating company, jointly owned and managed by Anglo American’s subsidiary Anglo American Sur and Codelco. This entity will oversee the execution of the joint mine plan, ensuring efficient use of processing capacity while both companies maintain separate ownership of their mining concessions and related assets.

How will the joint mine plan enhance copper production?

The integration of Los Bronces and Andina is designed to maximise operational efficiencies by sharing processing plants and infrastructure. Rather than investing in entirely new facilities, Anglo American and Codelco will optimise the use of existing capacity, allowing for a copper production increase without significant additional expenditure. This streamlined approach is expected to not only enhance output but also reduce costs and improve sustainability across both sites.

Anglo American Chief Executive Duncan Wanblad highlighted that copper remains central to the company’s long-term strategy. He stated that Anglo American has a clear roadmap to exceed 1 million tonnes of annual copper production by the early 2030s, representing a 30% increase from current levels. With Los Bronces and Andina together holding approximately 60 million tonnes of contained copper—equivalent to around 2% of global reserves—the collaboration is expected to unlock untapped potential in one of the world’s most resource-rich mining districts.

Wanblad also emphasised that the joint mine plan will not restrict the companies from pursuing their independent projects. Both Anglo American and Codelco will retain the flexibility to develop standalone initiatives, including underground resources, while continuing to coordinate their broader operational activities.

What does this partnership mean for Chile’s mining industry?

The agreement marks a significant milestone in Chile’s copper sector, reinforcing its global leadership in the industry. The Andina mine, located 80 km northeast of Santiago, is among the world’s largest copper reserves and has been a cornerstone of Codelco’s operations since mining began in 1970. The new collaboration is expected to elevate the Andina-Los Bronces mining district into one of the top three most productive copper regions in Chile and the fourth-largest worldwide.

Codelco Chairman Máximo Pacheco described the agreement as a landmark moment for public-private collaboration. He noted that Anglo American and Codelco have worked together for decades, formalising more than ten cooperation agreements over the years. The latest partnership takes this cooperation to a new level, presenting a unique opportunity to rethink how the mining district is developed for maximum efficiency and sustainability.

Pacheco projected that the copper production increase would average nearly 120,000 tonnes of fine copper per year, reinforcing Chile’s role as a critical supplier for the global energy transition. With demand for copper surging due to its essential role in electric vehicles, renewable energy infrastructure, and digital technologies, the partnership positions Chile as a key player in meeting the world’s growing resource needs.

How will the joint mine plan impact sustainability and regulatory approvals?

A major focus of the agreement is ensuring that the joint mine plan aligns with existing environmental and social commitments. Both Anglo American and Codelco have pledged to uphold sustainability principles that prioritise the protection of high-altitude Andean ecosystems and biodiversity. These commitments will guide the implementation of the plan, ensuring that local communities and environmental considerations remain at the forefront of decision-making.

In addition to sustainability, regulatory approvals will play a crucial role in moving the project forward. The memorandum of understanding outlines a timeline for finalising due diligence and securing necessary permits, with definitive agreements expected in the second half of 2025. Until then, both Los Bronces and Andina will continue to operate under the terms of a 2019 cooperation framework.

The agreement is subject to a series of conditions, including obtaining environmental permits and securing regulatory clearances. However, given the long history of collaboration between the two companies and their alignment on sustainability goals, industry analysts expect a smooth approval process.

Why is this collaboration a game-changer for the global copper market?

As demand for copper intensifies worldwide, the Anglo American-Codelco partnership provides a blueprint for how major miners can unlock mining district value through strategic cooperation. Instead of pursuing costly, standalone expansions, the agreement demonstrates how shared infrastructure and coordinated operations can drive efficiencies, reduce costs, and maximise resource extraction.

This model could set a precedent for other mining companies operating in geologically rich but capital-intensive regions. By integrating existing assets while maintaining ownership independence, companies can achieve a copper production increase without the financial and environmental burdens associated with building entirely new facilities.

Moreover, the agreement underscores Chile’s ability to adapt to shifting market dynamics. With global copper demand expected to outpace supply in the coming decades, initiatives like this will be critical in ensuring stable production levels and securing long-term economic benefits for the country.

What happens next for Anglo American and Codelco?

With due diligence and regulatory processes underway, both companies are focused on finalising the details of their agreement in the coming months. If approvals are secured as planned, the joint mine plan will begin implementation in the second half of 2025, setting the stage for increased output from 2030 onwards.

Until then, Los Bronces and Andina will continue to operate independently, ensuring a seamless transition to the new operational structure once regulatory clearances are granted. Both companies remain committed to maintaining stakeholder engagement throughout the process, reinforcing transparency and accountability as they move forward with this transformative collaboration.

Anglo American and Codelco’s partnership represents a bold step forward for Chile’s mining sector and the global copper industry. By leveraging shared infrastructure, optimising production capacity, and prioritising sustainability, the collaboration is set to unlock billions in additional value while positioning Chile as a premier copper supplier. As the companies navigate the final stages of regulatory approval, the mining world will be watching closely to see how this pioneering approach reshapes industry standards for years to come.