Anglo American and Chilean state-run copper giant Codelco said on Tuesday finalised an agreement to jointly operate their neighbouring Chilean copper mines, aiming to unlock at least $5 billion in value from their key assets.
The mining plan relates to Codelco's Andina mine and Anglo American's Los Bronces mine in central Chile outside the capital of Santiago, building on a memorandum of understanding signed by the two groups in February.
"We can now maximise the potential of the Andina-Los Bronces mining district without major investments and with significantly greater returns," said Codelco Chairman Máximo Pacheco.
Codelco and Anglo plan to unlock an additional 2.7 million tonnes of copper production over a 21-year period, pending the receipt of necessary permits, which are anticipated by 2030.
A new jointly owned operating company will oversee execution of the plan, the companies said, while both Codelco and Anglo will keep ownership of their respective assets.
The agreement also includes sustainability principles and flexibility to adhere to the companies' environmental commitments.
Located in the Andes, the expansion has been fought by environmental groups due to its potential impact on glaciers and water availability in Chile.
Anglo American earlier this month had announced a merger with Canadian miner Teck Resources, set to be the biggest mining deal in over ten years.
(Reporting by Ankita Bora in Bengaluru; Editing by Sumana Nandy)
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