Anglo American and state-owned Codelco have finalized an agreement to jointly operate their adjacent Los Bronces and Andina copper mines in Chile, a move that deepens the global miner's focus on the industrial metal.
The joint plan is expected to generate at least $5 billion in pre-tax value and boost copper production by an additional 120,000 tonnes a year over a 21-year period, the companies said Tuesday.
The agreement, which follows a memorandum of understanding signed in February, will create a new jointly-owned company to coordinate mining while both parties retain ownership of their respective assets.
This partnership reinforces Anglo American's strategic shift toward copper, which is central to its recently announced merger with Teck Resources and its divestment from commodities like platinum and coal.
Chief Executive Duncan Wanblad said, "Copper is a vital resource for the global energy transition and is at the forefront of our growth ambitions."
The companies will share the additional production and economic benefits equally.
Implementation of the plan, which is subject to regulatory and environmental approvals, is expected in 2030, according to the company.
More from this issuer
Related coverage
Anglo American said Monday it has scheduled a shareholder vote for Dec. 9 on its proposed merger of equals with Canada's Teck Resources, a key step in creating a major global producer of critical minerals.
Anglo American on Friday released further regulatory details regarding its planned merger of equals with Teck Resources, a deal aimed at creating a Canada-headquartered critical minerals producer to be named Anglo Teck.
Anglo American said on Wednesday that an operational review by its merger partner Teck Resources does not alter the strategic or financial terms of their planned combination.
Anglo American and Teck Resources have agreed to a merger of equals, creating a new Canadian-headquartered mining giant focused on copper.