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Highlights
- Anglo American and Codelco sign MoU to create a joint mine plan for Los Bronces and Andina.
- The partnership is expected to generate a $5 billion pre-tax NPV uplift over the agreement's life.
- Copper production to increase with minimal additional capital, benefiting both companies and Chile.
Anglo American plc (LSE:AAL) has announced the signing of a Memorandum of Understanding ("MoU") with Codelco, Chile's state-owned mining company, to establish a joint mine plan for their respective copper mines: Los Bronces and Andina. This new framework will optimize production from the adjacent operations, unlocking significant value in one of the world’s most important copper mining districts. The joint venture is projected to increase copper production while requiring minimal additional capital investment, with an expected pre-tax NPV uplift of at least $5 billion to be shared equally between the two companies over the agreement period.
The joint venture will involve the creation of a new operating company, equally owned and controlled by Anglo American Sur SA ("AAS") and Codelco. This company will manage the coordination and execution of the joint mine plan, including the optimization of processing capacity at both Los Bronces and Andina. Although the two companies will collaborate on production and cost-sharing, they will retain full ownership of their respective assets, including mining concessions, plants, and ancillary facilities. The assets will continue to be independently operated, allowing for flexibility in developing separate standalone projects, including potential underground resource developments.
Duncan Wanblad, Chief Executive of Anglo American, expressed his excitement about the partnership, saying, "Copper is at the forefront of our growth ambitions, and we already have a clear pathway to over 1 million tonnes of annual copper production by the early 2030s, representing a 30% increase. Los Bronces and Andina provide obvious synergies, and together, these two sites represent around 2% of global copper resources and reserves, with 60 million tonnes of contained copper. By implementing the joint mine plan and optimizing our processing plants, we aim to unlock an additional 2.7 million tonnes of copper production over the next 21 years."
The strategic partnership is a key step for both companies as they work to maximize the value of their adjacent operations. This collaboration builds on years of technical research and partnership between Anglo American and Codelco, creating the foundation for what is expected to be a highly beneficial agreement for both parties, their joint venture partners in AA Sur, and the Chilean economy.
Wanblad further noted, "Our technical teams have worked together for years to identify the optimal configuration, and we are excited to take this next step to unlock the full potential of this extraordinary mining district." The agreement is expected to deliver substantial long-term value, further reinforcing copper as a cornerstone of Anglo American's future growth strategy.
