Codelco Leverages Pucobre Financing to Develop Tovaku Copper Project in Chile

Written by Amir Richani for IIR News Intelligence (Sugar Land, Texas)

Summary

Codelco finalized the formation of its joint venture with Pucobre to develop the Tovaku copper project. The partnership reduces the need for Codelco's upfront capital burden in developing the greenfield project.

40/60 Joint Venture

Codelco (40%) and Pucobre (60%) have formed a new joint venture to develop the Tovaku copper project located in Tocopilla, Antofagasta in Chile. The Industrial Info Resources Global Market Intelligence (GMI) Metals & Minerals Project Database offers detailed project reports on Tovaku.

Through the joint venture, Codelco will provide the project's mining concessions, while Pucobre will contribute to the studies already completed and finance the project development and construction. This structure allows Codelco to participate in the project without making capital constributions, while Pucobre will recover its investment through Codelco's future distribution from the joint venture.

"The associations are a pillar of Codelco's growth strategy. They allow us to accelerate the generation of value from our mining resources, incorporate the capabilities and specialization of good partners, and achieve efficient structures to increase new production. Tovaku is a very good example of this: an initiative that drives investment and captures value for Codelco and for Chile," said Bernardo Fontaine, charman of Codelco's Board.

Industrial Info Resources is tracking three Tovaku-related projects, with a total investment of US$540 million. According to Industrial Info Resources data, the copper mine will have a production capacity of 40,000 tons per year.

In addition to Tovaku, Industrial Info Resources is also tracking the Nuevo Cobre greenfield copper project, which could eventually add new production capacity to the company if developed.

Developing new copper projects is vital for Codelco, which has been facing lower ore grades at aging desposits and has struggled to restore production to historical levels. The company's structural projects, aimed at replenishing depleting deposits, have faced delays, higher costs, and lower than expected outputs.

Fontaine said to Mesa Central in August that the Chilean company invested US$32 billion over the previous eight years, while production dropped from 1.7 million to 1.3 million tonnes and production costs increased significantly.

To avoid weakening its financial situation, Fontaine said that Codelco will try to avoid further increasing its debt, while acknowleging how challenging it will be to meet the company's project pipeline for the next few years, set at US$34 billion.

This is where private partnerships such a Tovaku become important, allowing Codelco to advance in new projects while limiting its upfront capital requirements.

Additionally, Fontaine also said in July that Codelco would not reach its previous copper production target of 1.7 million tonnes by 2030.

New Partnerships

In the last year, Codelco has expanded its use of public-private partnerships across copper and lithium projects, as it seeks to accelerate developments and limit financial exposure. One example is NovaAndino, Codelco's and SQM joint venture, created in December 2025 to continue the development and production of lithium at the Atacama salt flat through 2060.

Similarly, in February 2026, Codelco (34%) and Quiborax (66%) finalized a joint venture to develop the Ascotan salt flat in northern Chile.

In terms of copper partnerships, Codelco holds interests in the El Abra mine (49%), Quebrada Blanca (10%) and Anglo-American Sur (20%). Before Tovaku, one of the most recent greenfield joint ventures for the development of a copper project was with Rio Tinto (57.74%) for the Nuevo Cobre project in 2023.

Key Takeaways

• Codelco and Pucobre have formed a new partnership to develop the Tovaku copper project.
• Codelco aims to leverage private investments in greenfield projects to reduce its financial burden.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).