Anglo American and Codelco鈥檚 joint mine plan for Los Bronces and Andina targets $5 billion value, boosting copper output sustainably and efficiently.
Anglo American plc, through its majority-owned subsidiary Anglo American Sur S.A. (AAS), and Chilean state-owned copper giant Codelco have officially signed a landmark agreement to implement a joint mine plan for their neighboring copper operations鈥擫os Bronces and Andina, located in Chile. The agreement follows the memorandum of understanding signed in February 2025 and has received unanimous approval from both companies鈥� boards of directors, signaling strong alignment and commitment to this transformative partnership.
The joint mine plan is projected to unlock an additional 2.7 million tonnes of copper over a span of 21 years, starting from 2030 once the required environmental permits are secured. This equates to roughly 120,000 tonnes of extra copper production annually, which will be shared equally between the two companies. Importantly, this increase in production is expected to be achieved with about 15% lower unit costs compared to operating separately and will require minimal additional capital expenditure. Financial modeling suggests that the transaction could deliver a pre-tax net present value uplift of at least $5 billion, also to be split equally between AAS and Codelco.
If implemented as planned, the combined production from Los Bronces and Andina鈥攁lready ranking among the world鈥檚 top 10 copper mines in 2024鈥攚ould climb into the top five once the incremental output is factored in. This is made possible by harmonizing mining operations across the two adjacent resources while leveraging existing processing capacity and infrastructure. The alliance not only boosts operational efficiency but also positions both companies as pioneers in sustainable, large-scale copper mining, helping set new global benchmarks for innovation and collaboration.
Duncan Wanblad, CEO of Anglo American, emphasized copper鈥檚 critical role in the global energy transition and praised the collaboration: 鈥淭his agreement with Codelco ushers in a new chapter for two exceptional copper assets. Our teams, along with partners Mitsubishi and Mitsui, have worked tirelessly to realize this ambitious plan, which will generate more than $5 billion in additional value while benefiting Chile and all stakeholders.鈥�
Codelco Chairman M谩ximo Pacheco echoed this sentiment, highlighting the speed and inclusiveness of the process: 鈥淚n just eight months, we finalized a plan that had been pending for years. With no major new investment required, we can now maximize the Andina-Los Bronces district鈥檚 potential while helping supply the copper needed for the energy transition.鈥�
To oversee execution, a new jointly owned and jointly managed operating company will be established. This entity will coordinate mine planning, optimize processing, and ensure that production volumes, costs, and liabilities are shared equally. Both AAS and Codelco will maintain ownership of their respective concessions, plants, and infrastructure, and will retain the flexibility to develop separate standalone projects, including underground resources, in a coordinated way.
The companies have also agreed on sustainability principles to guide implementation, safeguarding environmental and social commitments while ensuring long-term responsible mining practices. The agreement remains subject to regulatory approvals and the granting of relevant environmental permits.
Currently, Anglo American Sur鈥檚 shareholders are Anglo American (50.1%), Mitsubishi Group (20.4%), and Becrux, a joint venture between Codelco and Mitsui (29.5%).
