Anglo American and Codelco sign 'landmark' joint mine plan worth $5bn

(Sharecast News) - Anglo American has announced that it has finalised a "landmark agreement" with Chilean copper miner Codelco to jointly mine their adjacent mines, which is expected to unlock 2.7m additional tonnes of copper. Anglo American Sur (AAS), 50.1%-owned by the UK-listed miner, on Tuesday signed a "joint mine plan" with Codelco for their Los Bronces and Andina operations, first earmarked back in February.

In what the companies called a "transformative development in the global copper industry", AAS and Codelco will coordinate the mining of two adjacent resources with existing plant capacity and infrastructure, resulting in around 120,000 tonnes of additional copper output a year.

Mined volumes will shared equally, but with the companies benefitting from 15% lower unit costs compared to their standalone operations.

"The transaction is expected to generate a pre-tax net present value uplift of at least $5 billion, to be shared equally between AAS and Codelco," Anglo said in a statement.

Once relevant permits are in place, currently expected in 2030, the joint mine plan is expected to result in 2.7m additional tonnes of combined copper production over a 21-year period, ranking the combined operations in the top five copper mines globally.

"Copper is a vital resource for the global energy transition and is at the forefront of our growth ambitions. We are delighted to finalise this landmark agreement with Codelco, ushering in a new chapter for Los Bronces and Andina, which are two exceptional copper assets," said Anglo chief executive Duncan Wanblad.

"I am immensely proud of the collaboration between Anglo American and Codelco, which has brought this ambitious vision to life. Together, we are demonstrating what is possible when two leading copper mining companies work together with a shared purpose and commitment to excellence."