Anglo American PLC (LSE:AAL) and Chilean state miner Codelco have finalised a joint mine plan for their adjacent Los Bronces and Andina copper operations, aiming to unlock at least $5 billion in pre-tax value.
The agreement follows a memorandum of understanding, announced previously in February 2025, and has now been unanimously approved by both companies’ boards.
A 21-year mine plan targets 2.7 million tonnes of additional copper output starting around 2030, subject to permitting.
Annual production of approximately 120,000 tonnes is expected, shared equally between the parties and delivered at around 15% lower unit costs compared to standalone operations.
"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. I am immensely proud of the collaboration between Anglo American and Codelco, which has brought this ambitious vision to life," said Anglo American chief executive Duncan Wanblad.
"Together, we are demonstrating what is possible when two leading copper mining companies work together with a shared purpose."
A new jointly owned operating company will manage the plan’s execution, leveraging existing plant infrastructure while maintaining separate asset ownership.
Today's news follows last week's announcement that Anglo American will merge with Canadian miner Teck.
Positioned as a merger of equals, the transaction will create a group valued at around £40 billion ($54 billion) with a strategic focus on copper as it will be the world's second largest producer of the vital metal.