Anglo American (LSE:AAL) and Chilean state-owned Codelco have finalized an agreement to jointly develop their neighboring copper mines, Los Bronces and Andina, in a deal projected to unlock at least $5 billion in value.
The collaboration will coordinate operations at both sites in central Chile through a joint mine plan, expected to add 2.7 million tonnes of copper production over 21 years once environmental permits are obtained, currently anticipated by 2030. The additional output is projected at around 120,000 tonnes annually, shared equally between the two companies.
The joint plan is expected to reduce unit costs by roughly 15% compared with operating the mines separately, with minimal additional capital investment required. The projected pre-tax net present value increase of $5 billion will be split equally between Anglo American Sur S.A., Anglo American’s 50.1%-owned subsidiary, and Codelco.
Combined production from Los Bronces and Andina in 2024 ranked the mines among the world’s top ten copper producers. The additional 120,000 tonnes per year under the joint plan would elevate them into the top five globally.
The agreement, unanimously approved by both boards, follows a memorandum of understanding signed in February 2025. A new jointly owned and controlled operating company will be established to implement the plan and optimize processing capacity across both mines. Each company will retain full ownership of its assets and continue operating its concessions independently.
Both Anglo American and Codelco will retain the ability to pursue separate projects, including underground expansions, during the agreement’s term. Anglo American Sur’s shareholders include the Anglo American group (50.1%), Mitsubishi Group (20.4%), and Becrux, a Codelco-Mitsui joint venture (29.5%).
The deal remains subject to regulatory and competition approvals, as well as obtaining environmental permits before the joint mine plan can be executed.
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