JOHANNESBURG (iningweekly.com) – At least $5-bilion has been liberated by Johannesburg-listed Anglo American carrying out a joint mine plan with an adjacent copper operator in South America.

Becoming one are Anglo American Sur’s Los Bronces mine and Codelco’s Andina mine in Chile.

Los Bronces is an opencast copper mine with a 30-year-plus mine life and Andina is one of Chile’s oldest mines.

Once relevant permits are in place in 2030, the joint mine plan will add 2.7-million tonnes of extra copper potential over 21 years.

The additional 120 000 t/y of copper will come at a 15% lower unit cost relative to standalone operations, as well as minimal incremental capital expenditure.

Anglo American Sur and the State-owned Codelco share the minimum $5-billion pre-tax net present value uplift equally.

Interestingly, the combined 2024 outputs of Los Bronces-Andina put the amalgamated entity into the global top ten with the incremental 120 000 t/y expected under the joint mine plan elevating the merged entity into the global top five. The step change is made possible by the coordination of existing plant capacity and infrastructure.

Anglo CEO Duncan Wanblad put copper at the forefront of his diversified mining company’s growth ambitions through a Stock Exchange News Service (SENS) announcement, in which he described the transaction as one which is “ushering in a new chapter”.

“Together, we’re demonstrating what’s possible when two leading copper mining companies work together with a shared purpose,” added Wanblad, while pointing out that without the support of Anglo American Sur’s partners Mitsubishi and Mitsui copper advance would not have been possible.

Codelco chairperson Máximo Pacheco placed value on the transaction being inclusive of “the voices of workers, as well as the intense effort, remarkable capabilities, and outstanding professionalism of our teams, who succeeded in reaching an agreement that had been in waiting for years”.

“We can now maximise 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," he pointed out in the SENS announcement sourced by Mining Weekly.

The new jointly owned and jointly controlled operating company, the statement said, would now coordinate execution of the joint mine plan and optimise processing capacity across Los Bronces and Andina.

Each party would retain ownership of respective assets, taking in mining concessions, plants and ancillary infrastructure, and each would continue to mine concessions separately.

Moreover, the implementation of the  joint mine plan would be guided by sustainability principles to safeguard social and environmental commitments.