Codelco and Anglo American, partners and neighbors in the Chilean Andes, are exploring closer coordination to maximize the potential of their adjacent mining operations. The Chilean state company and the Anglo-South African mining firm are both shareholders in Anglo American Sur, which oversees the Los Bronces and El Soldado mines, along with the Chagres smelter. Anglo American holds a 50.1% stake, while Codelco owns 20%. Both companies operate in the same mining district near Santiago, with Codelco's Andean Division to the north and Anglo's Los Bronces to the south.
The companies have long seen the potential benefits of greater collaboration, though only minor agreements have been made. In June 2019, governance and easement agreements were established to leverage synergies between Los Bronces and Andina. However, under the current Codelco administration, efforts to deepen these agreements have intensified. Sources indicate that Codelco's president, Máximo Pacheco, is personally driving the talks, aiming for a resolution by next year.
This push comes as Anglo American is the target of a takeover bid by BHP, the world's largest mining company, which has been rejected twice. Analysts suggest that BHP's interest in Anglo American is driven by its copper assets, particularly Los Bronces. This situation could make Anglo more open to negotiating with Codelco, potentially increasing the asset's value under BHP's looming presence.
Codelco's production has declined from 1.7 million tons annually four years ago to 1.3 million tons last year. To reverse this trend, Codelco is exploring all recovery options, including a potential alliance with Anglo. Gustavo Lagos, a mining engineering professor at the Catholic University, notes that combining Los Bronces' resources with Andina's could create the largest deposit in the world, capable of producing over a million tons annually.
Although Codelco has not detailed the progress or direction of the negotiations, it acknowledges that discussions are ongoing. The joint work aims to generate additional value for both the business and Chile, focusing on cooperation that enhances long-term operational sustainability.
"The joint work is in permanent talks with the aim of generating additional value, not only for the business but also for Chile," Codelco stated. "We are currently jointly exploring the feasibility of additional levels of cooperation that could achieve greater simplification, optimization, and incremental value."
