en.Wedoany.com Reported - Anglo American (LON: AAL) has reached a final agreement with Chile's state-owned copper company Codelco to merge the development plans of the adjacent Los Bronces and Andina mines. This collaboration is expected to unlock at least $5 billion in value and increase copper production by 2.7 million tons over 21 years.
The joint mine plan will form a large copper mining district northeast of Santiago, expected to produce an average of 120,000 tons of low-cost copper annually, split equally between the two parties, with minimal capital investment required. The project is subject to environmental permits and other customary conditions, with both companies expecting to complete these approvals by 2030.
"The next major milestone for Los Bronces-Andina is obtaining permits in a timely manner, which will allow us to begin realizing the targeted additional production and value for the benefit of all stakeholders and Chile," said Anglo American CEO Duncan Wanblad.
The agreement reflects a trend among major miners to boost output from existing assets through collaboration rather than costly greenfield development. By integrating the Los Bronces and Andina mine plans, Anglo American and Codelco aim to consolidate Chile's position as the world's largest copper producer and support the country's goal of increasing national copper output to 6 million tons per year by 2030.
Codelco Chairman Bernardo Fontaine said this partnership will more effectively utilize existing infrastructure, while delivering greater returns for Chile and maintaining operational discipline. "This is a concrete example of how collaboration can create greater value without compromising the rigor, discipline, and commitment that Codelco demands today," Fontaine said.
The additional production and economic benefits will still take years to materialize and depend on regulatory approvals. The environmental review process for large mining projects in Chile can be lengthy, and any delays could postpone the expected start of the joint mine plan.
The agreement, reached after years of negotiations between the companies and partners Mitsubishi Corp. and Mitsui & Co., is one of the largest copper cooperation agreements globally. The adjacent mining areas contain some of the world's most significant copper resources, offering substantial opportunities for optimizing mine sequencing, infrastructure utilization, and future development.
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