According to informed sources, Anglo American Plc and Codelco are considering ways to collaborate on their adjacent copper mining operations in Chile to enhance productivity and output.
The discussions involve optimizing mineral-rich grades located between Codelco’s Andina mine and Anglo’s Los Bronces mine.
Additionally, there’s talk of processing Andina’s ore at the Los Bronces plants.
Those familiar with the discussions emphasized that any potential agreement would focus on operational collaboration rather than ownership shifts.
Both Codelco and Anglo refrained from commenting.
These neighboring mines have long considered sharing infrastructure and site access and have inked several agreements pertaining to right-of-way and sustainability.
However, talks were halted due to prolonged permit processes for underground operations at Los Bronces, which have now been resolved.
Globally, mining companies are looking to partner to counteract the increasing challenges, including persistent supply chain interruptions, inflation, and construction bottlenecks.
In a recent statement, Glencore Plc’s CEO, Gary Nagle, mentioned the advantages of consolidating proximate mines owned by distinct entities.
Given the declining ore quality, water constraints, and heightened environmental and societal scrutiny, the incentive for Andina and Los Bronces to strike a deal could be significant.
For Codelco, this could also positively impact production, which has seen a downturn amidst rising costs.
In a 2012 agreement, Codelco acquired an indirect stake in Los Bronces when Anglo decreased its share in its Sur unit, of which Los Bronces has a 50.1% ownership.
A joint venture between Codelco and Mitsui then acquired a 29.5% stake.