A New Era for Copper: Anglo American and Codelco Finalize Landmark $5 Billion Mining Deal

In a significant development for the global mining industry, Anglo American and Chile's state-owned copper company, Codelco, have officially finalized a definitive agreement to jointly operate their adjacent copper mines, Los Bronces and Andina. This strategic alliance is projected to unlock at least $5 billion in value and has been unanimously approved by both companies' boards of directors.

The landmark deal, which follows a memorandum of understanding signed in February 2025, aims to coordinate the mining of the two adjacent resources. By leveraging existing infrastructure and plant capacity, the partnership is expected to generate an additional 2.7 million tonnes of copper production over a 21-year period, with permits anticipated by 2030. The partnership is designed for efficiency, with the companies expecting a decrease in unit costs of more than 10% relative to standalone operations and requiring minimal additional capital expenditure.

This collaboration is poised to transform the global copper industry. The combined 2024 production from Los Bronces and Andina would have ranked among the top 10 copper mines worldwide. With the expected additional annual output of roughly 120,000 tonnes of copper, the operations would move into the top five. A new operating company, jointly owned and controlled by Anglo American Sur (AAS) and Codelco, will oversee the joint mine plan. All copper production, economic benefits, and associated costs will be shared equally between the two parties.

According to Duncan Wanblad, CEO of Anglo American, copper is a critical resource for the global energy transition. He praised the collaboration, noting that the agreement demonstrates what is achievable when two leading mining companies work together with a shared purpose. Máximo Pacheco, Chairman of Codelco, highlighted the reliability of both companies in finalizing the agreement in just eight months. He emphasized that the partnership will help meet the urgent demand for critical minerals without major new investments.

While the companies will maintain full ownership of their respective assets and continue to exploit their concessions separately, the joint plan ensures coordinated and appropriate development. The agreement is subject to customary competition and regulatory approvals, as well as securing relevant environmental permits for the joint mine plan. The partnership also includes sustainability principles to safeguard social and environmental commitments.