Chile's Codelco Advances $870 Million Copper Mine Partnership

en.Wedoany.com Reported - On August 16, local time, Bernardo Fontaine, Chairman of Chile's state-owned copper company Codelco, stated that the company is close to signing a new agreement with Pucobre regarding the Tovaku copper mine project. The project, with a planned investment of $870 million, is currently undergoing environmental impact assessment. Both parties have not yet completed the agreement signing, and the proposed joint venture has not been established.

The partnership between Codelco and Pucobre began in 2009. At that time, the two parties signed an exploration and joint venture commitment agreement for the mining rights formerly known as Puntillas-Galenosa, under which Codelco provided the mining rights and preliminary research results, while Pucobre was responsible for exploration, technical-economic studies, and related funding. If the project meets conditions related to investment, feasibility studies, and environmental permits, Pucobre may exercise its option to acquire a 60% interest, with Codelco retaining 40%.

As of June 30, 2026, Pucobre has invested approximately $40.35 million in the Tovaku project. The current 60/40 split is a conditional arrangement and does not represent a finalized ownership structure. Both parties still need to clarify the terms of the new agreement, with Pucobre deciding whether to exercise its option and satisfy the conditions precedent for establishing the joint venture.

Tovaku is a low-grade copper oxide deposit, with existing project data comprising approximately 633.5 million tonnes of ore at an average copper grade of about 0.20%. The project plans to develop an open-pit mine along with crushing, acidification, heap leaching, solvent extraction, and electrowinning facilities, producing approximately 917,500 tonnes of high-purity cathode copper over a 21-year operating period, equivalent to an average of about 43,700 tonnes per year; the nominal annual production capacity cited in environmental documents is approximately 46,000 tonnes.

Supporting infrastructure includes a 193 MW photovoltaic power plant, a 72.5-kilometer seawater conveyance system, and a 27-kilometer, 220 kV transmission line. The project's construction period is estimated at 28 months, with a 21-year operating period and a closure phase of approximately 2 years. Pucobre submitted the environmental impact report in July 2025, after which Chile's environmental assessment agency requested supplementary information on project water usage, roads, hazardous substances, ecology, and emergency management. The project has not yet obtained environmental permits.

Industry project listings anticipate that Tovaku may commence production around 2035, though this timeline remains subject to environmental approvals, the joint venture agreement, financing, and the final investment decision. Both parties have not yet disclosed the signing date of the new agreement, project financing plans, engineering procurement and construction arrangements, or formal commencement schedules.