Wrap Text
Anglo American and Codelco to unlock significant value from joint mine plan for Los Bronces and Andina copper mines
Anglo American plc
Registered office: 17 Charterhouse Street, London EC1N 6RA
Registered number: 3564138 (incorporated in England and Wales)
Legal Entity Identifier: 549300S9XF92D1X8ME43
ISIN: GBOOB1XZS820
JSE Share Code: AGL
NSX Share Code: ANM
(the "Company")
News Release
20 February 2025
Anglo American and Codelco to unlock significant value from joint mine plan for Los Bronces and
Andina copper mines
Anglo American plc ("Anglo American") announces the signing of a memorandum of understanding
("MoU") between its 50.1% owned subsidiary Anglo American Sur SA ("AAS") and the Chilean state-
owned mining company Codelco for a framework to implement a joint mine plan for the two companies'
respective, adjacent copper mines of Los Bronces and Andina in Chile. The joint mine plan will increase
copper production with minimal additional capital required, helping to unlock the full value of this world-
class mining district and generating an expected NPV uplift of at least $5 billion pre-tax over the period
of the agreement, to be shared equally.
A new operating company, jointly owned and controlled by AAS and Codelco, will coordinate the
execution of the joint mine plan and optimise the use of the processing capacity of the two operations.
The resulting copper production and value generated, as well as any costs and liabilities from the joint
mine plan, will be shared equally between AAS and Codelco. AAS and Codelco will retain full ownership
rights of their respective assets, such as mining concessions, plants, and ancillary assets and will continue
to exploit their respective concessions separately.
Duncan Wanblad, Chief Executive of Anglo American, said: "Copper is at the forefront of our growth
ambitions and we already have a clear pathway to more than 1 million tonnes of annual copper
production by the early 2030s, a 30% increase. Building on that growth pipeline, Los Bronces and Andina
present obvious and significant adjacency benefits and together represent approximately 2% of global
copper Resources and Reserves, with approximately 60 million tonnes of contained copper1. By putting
in place a joint mine plan and optimising the use of our respective processing plants, we believe we can
unlock an additional 2.7 million tonnes of copper production over a 21-year period from 2030 alongside
other operational synergies made possible by coordinating our activities across the site. Anglo American
and Codelco will both retain flexibility to develop separate standalone projects, including development
of underground resources during the period of the joint mine plan in an appropriately coordinated
manner.
"Our technical teams have been working together for many years to identify the optimal configuration
to unlock the full value of this extraordinary mining district. We are delighted that our work with Codelco
has created the foundations for an agreement that can create very significant additional value for Anglo
American and Codelco, for our JV partners in AA Sur and other stakeholders, and for Chile."
Máximo Pacheco, Chairman of Codelco, commented: "Codelco and Anglo American have been good
neighbours for decades. This relationship has developed through more than 10 cooperation agreements
between the two companies over half a century. Today, we have a unique opportunity to rethink the
development of this mining district and take a strategic and beneficial step: moving forward with an
alliance that will allow us to increase copper production by an average of nearly 120 thousand tonnes of
fine copper per year, without any material additional investments. Considering total production, this
district would become one of the three most important in Chile and the fourth worldwide. In this way,
we will contribute a critical mineral for the transition to a decarbonized economy and generate additional
value of at least $5 billion pre-tax, increasing our contribution in the short and medium term while
strengthening Chile's position as a leading global copper supplier.
"This project represents an unprecedented public-private collaboration model globally, with a corporate
governance structure equally composed of Codelco and Anglo American. Each company will conduct its
mining operations independently but in a coordinated manner, safeguarding the current socio-
environmental commitments of both and placing the protection of high Andean ecosystems and their
biodiversity at the centre."
The companies have also established sustainability principles to guide the implementation of the joint
mine plan, which safeguard both social programmes and existing environmental commitments.
Under the terms of the MoU, Anglo American and Codelco are working towards concluding due diligence
and entering into definitive agreements in H2 2025. The agreements will be subject to a number of
conditions including securing environmental permits for the joint mine plan and regulatory approvals. In
the interim, both Los Bronces and Andina will continue to operate as they currently do, based on the
2019 cooperation agreement between the two mines.
1The approximately 60Mt of copper contained in the Resources and Reserves of Los Bronces and Andina relates only to that which
is subject to the MoU and therefore excludes the endowments relating to the Los Bronces Underground project and Andina's
underground options. Source: Anglo American Ore Reserves and Mineral Resources Report; and S&P Global. For additional
information on Ore Reserves and Mineral Resources, refer to the companies' websites.
The Company has a primary listing on the Main Market of the London Stock Exchange and secondary
listings on the Johannesburg Stock Exchange, the Botswana Stock Exchange, the Namibia Stock Exchange
and the SIX Swiss Exchange.
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
For further information, please contact:
Media Investors
UK UK
James Wyatt-Tilby Tyler Broda
james.wyatt-tilby@angloamerican.com tyler.broda@angloamerican.com
Tel: +44 (0)20 7968 8759 Tel: +44 (0)20 7968 1470
Marcelo Esquivel Michelle West-Russell
marcelo.esquivel@angloamerican.com michelle.west-russell@angloamerican.com
Tel: +44 (0)20 7968 8891 Tel: +44 (0)20 7968 1494
Rebecca Meeson–Frizelle Asanda Malimba
rebecca.meeson-frizelle@angloamerican.com asanda.malimba@angloamerican.com
Tel: + 44 (0)20 7968 1374 Tel: +44 (0)20 7968 8480
South Africa
Nevashnee Naicker
nevashnee.naicker@angloamerican.com
Tel: +27 (0)11 638 3189
Ernest Mulibana
ernest.mulibana@angloamerican.com
Tel: +27 82 263 7372
Notes:
Anglo American is a leading global mining company focused on the responsible production of copper,
premium iron ore and crop nutrients – future-enabling products that are essential for decarbonising the
global economy, improving living standards, and food security. Our portfolio of world-class operations
and outstanding resource endowments offers value-accretive growth potential across all three
businesses, positioning us to deliver into structurally attractive major demand growth trends.
Our integrated approach to sustainability and innovation drives our decision-making across the value
chain, from how we discover new resources to how we mine, process, move and market our products to
our customers – safely, efficiently and responsibly. Our Sustainable Mining Plan commits us to a series of
stretching goals over different time horizons to ensure we contribute to a healthy environment, create
thriving communities and build trust as a corporate leader. We work together with our business partners
and diverse stakeholders to unlock enduring value from precious natural resources for our shareholders,
for the benefit of the communities and countries in which we operate, and for society as a whole. Anglo
American is re-imagining mining to improve people's lives.
Anglo American is currently implementing a number of major structural changes to unlock the inherent
value in its portfolio and thereby accelerate delivery of its strategic priorities of Operational excellence,
Portfolio simplification, and Growth. This portfolio transformation will focus Anglo American on its world-
class resource asset base in copper, premium iron ore and crop nutrients, once the sale of our
steelmaking coal and nickel businesses, the demerger of our PGMs business (Anglo American Platinum),
and the separation of our iconic diamond business (De Beers) have been completed.
www.angloamerican.com
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Forward-looking statements and third party information
This document includes forward-looking statements. All statements other than statements of historical facts included
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prospects and projects (including development plans and objectives relating to Anglo American's products,
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forward-looking statements include, among others, levels of actual production during any period, levels of global
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American's assets and changes in taxation or safety, health, environmental or other types of regulation in the
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factors identified in Anglo American's most recent Annual Report. Forward-looking statements should, therefore, be
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forward-looking statements speak only as of the date of this document. Anglo American expressly disclaims any
obligation or undertaking (except as required by applicable law, the City Code on Takeovers and Mergers, the UK
Listing Rules, the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority, the Listings
Requirements of the securities exchange of the JSE Limited in South Africa, the SIX Swiss Exchange, the Botswana
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updates or revisions to any forward-looking statement contained herein to reflect any change in Anglo American's
expectations with regard thereto or any change in events, conditions or circumstances on which any such statement
is based.
Nothing in this document should be interpreted to mean that future earnings per share of Anglo American will
necessarily match or exceed its historical published earnings per share. Certain statistical and other information
included in this document is sourced from third party sources (including, but not limited to, externally conducted
studies and trials). As such it has not been independently verified and presents the views of those third parties, but
may not necessarily correspond to the views held by Anglo American and Anglo American expressly disclaims any
responsibility for, or liability in respect of, such information.
Legal Entity Identifier: 549300S9XF92D1X8ME43
Date: 20-02-2025 09:00:00
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