Codelco, Anglo-American to Merge Two Mines in Chile

Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Codelco (Santiago, Chile) and Anglo American (London, England) have finalized and approved a deal to merge the operations of the Andina and Los Bronces mines in Chile. The companies aim to add a cumulative 2.7 million tons of copper production over 21 years and generate US$5 billion in revenues through the merger.

The companies expect to receive all the required permits to jointly develop the neighboring assets by 2030.

The merger will enhance efficiency and lower costs by 15%, resulting in an increased annual production of 120,000 tons of copper. The plan foresees minerals being extracted independently at each mine, while processing will leverage shared assets, including plant capacities.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Plant Database can click here for the Los Bronces plant profile and click here for the Andina profile.

The commercialization of the copper output will be conducted independently by each of the companies.

Codelco and Anglo American will establish a new operating company to oversee the merger of their operations, with both companies sharing the economic costs and benefits equally.

"We can now maximize the potential of the Andina-Los Bronces mining district without major investments and with significantly greater returns. This collaboration for sustainable mining will also help meet the urgent need for more critical minerals for the energy transition, in a world where copper production has so far remained stagnant," said Codelco's chairman, Maximo Pacheco.

The Andina mine produced 182,000 tons of copper last year, while Los Bronces saw volumes of 172,000 tons in the same period. Combining their output and adding the extra production emerging from this agreement, the Andina-Los Bronces operations would be among the world's top 10 mining assets, with contained resources and reserves of approximately 60 million tons of copper.

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