State-owned Chilean miner Codelco has purchased a 10% stake in the Quebrada Blanca copper mine for $520 million from fellow state miner Enami. This acquisition adds to Codelco’s portfolio at a time when the company is striving to increase its copper output after a significant production decline last year.
The Quebrada Blanca mine, owned primarily by Canada’s Teck Resources (60%) and Japan’s Sumitomo Metal Mining (30%), is undergoing an expansion through its QB2 project. Teck Resources has set a production target of 285,000 to 315,000 tonnes annually by 2026, with QB2 achieving 51,300 tonnes in the second quarter of this year—an 18% increase from the previous quarter.
Codelco’s deal with Enami ensures that it will not face dilution in future capital raisings, despite Enami’s stake being non-funding. However, despite this acquisition, Codelco faces competition from BHP, which has ambitious plans to significantly boost its copper production in South Australia. BHP is aiming to ramp up production to 650,000 tonnes annually by the mid-2030s, with key projects like Olympic Dam and Oak Dam leading the way.
As Codelco works to reverse its declining output, which hit a 25-year low at 1.32 million tonnes last year, the challenge remains whether this latest acquisition will help it keep pace with global competitors like BHP, which is positioning itself as a major player in the copper market. 
