Anglo American and Codelco Seal $5 Billion Copper Pact in Chile

Codelco and Anglo American have signed an agreement to run their adjacent Los Bronces and Andina copper mines together, with the plan set to deliver at least US$5 billion in added value and ramp up output by 120,000 tonnes of copper each year.

The deal, announced officially on September 15, 2025, will operate through a jointly owned company overseeing daily mining, but both firms will continue to own their mines and equipment.

From 2030 through 2051, the partnership aims to unlock an extra 2.7 million tonnes of copper using the same facilities. Last year, Los Bronces produced 172,000 tonnes and Andina 182,000, making their combined output one of the largest globally.

With this agreement, the district will move into the top five copper producers worldwide. Engineers will process ore from both mines using the newer, higher-capacity plants at Los Bronces, which allows Codelco to get its copper to market faster and at lower cost.

Shared logistics and blending of ore will reduce mining costs by about 15%, according to both companies, with minimal investment required. Each company will get half the extra value from production, matching their contributions and risks.

For Chile, this means more copper exports and higher government revenues. Codelco’s share alone should add over US$2.7 billion to public finances over two decades, with another US$1 billion in taxes and royalties coming from Anglo American’s local unit.

The government and both firms stress that no one loses their mine, equipment, or jobs; only management of shared operations changes. Officials argue that this collaborative approach keeps both mines running longer and more efficiently.

The companies say the project will not require big new plants or relocations. It relies on using what is already built in a smarter, coordinated way.

Each mine keeps its current workforce, but the new operating company coordinates daily work to make sure both benefit equally from efficiency gains.

Environmental permits are still needed, and both groups have pledged to respect all existing regulations, especially on water use and glacier protection in the Andes.

The agreement only targets open-pit mines, not the underground operations at Andina or planned expansions at Los Bronces. As electric vehicles and clean energy push up copper demand worldwide, the world’s top copper producer hopes this deal sets a new example.

With minimal disruption, Chile keeps its lead in supplying a critical resource while keeping more money flowing into national coffers. This story shows how smart partnerships in mining can stretch resources further, with both public and private interests gaining.