The definitive agreement coordinates extraction at Los Bronces and Andina, two adjacent copper deposits in central Chile. The plan could boost output and cut costs for both miners.
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Anglo American (AAUKF) (NGLOY) said Wednesday it has completed a definitive agreement with Chile's state-owned Codelco to implement a joint mine plan for their Los Bronces and Andina copper mines. The two deposits sit adjacent in the Andes east of Santiago. A coordinated extraction plan has been discussed for years.
The deal covers how the companies will share infrastructure and sequence mining. Anglo American said the agreement is final and binding. Financial terms were not disclosed.
The joint plan aims to increase copper output from the two mines without requiring new shafts or haul roads, according to Anglo American. Chile accounts for about a quarter of global copper mine output. Any increase from existing assets helps ease the supply tightness that has supported prices.
Los Bronces and Andina are two of Chile's most important copper mines. Together they produce hundreds of thousands of tons of copper annually. The agreement allows them to access ore that would otherwise be left in the ground as a boundary pillar.
The read-through for other copper miners is indirect. Chile's major deposits are aging, and ore grades have fallen for a decade. New projects face long permitting timelines and rising capital costs. Cooperation between private and state miners is becoming more common as a way to extend mine life without large new investments.
Copper demand is expected to grow as electric vehicles and renewable energy infrastructure expand. Many analysts expect a supply deficit by the end of the decade. The joint plan does not close that gap on its own. It does, however, help.
Anglo American has been focusing on copper as it sells coal and diamond assets. A successful joint plan at Los Bronces would support that strategy by improving the mine's economics. Codelco, meanwhile, is trying to reverse a production decline. The state miner's output fell to a 25-year low in 2023, and it needs every ton it can get.
The agreement is the latest example of such cooperation in Chile. BHP and Antofagasta have similar arrangements with Codelco at other deposits. The trend shows the value of existing assets in a world where new copper discoveries are rare and expensive to develop.
Anglo American said the agreement is effective immediately. Implementation details will be worked out in the coming months.
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