Anglo Signs Copper Mine Development Agreement with Chile's Codelco -

Anglo American Plc has established a partnership with Codelco, Chile’s government-owned mining firm, to jointly develop their adjacent operations, Los Bronces and Andina.

This collaborative mining effort aims to boost copper production, with a projected net present value pretax increase of at least $5 billion, which will be split evenly between both parties, according to Anglo’s announcement on Thursday.

Last year, Anglo revealed a restructuring strategy focused on enhancing its concentration on iron ore and copper, following a substantial $49 billion takeover proposal from BHP Group.

“Copper is at the heart of our growth strategy, and we are well on our way to achieving over 1 million tons of annual copper production by the early 2030s, which reflects a 30% increase,” remarked Chief Executive Officer Duncan Wanblad.

Worldwide, mining companies are forming partnerships to cut costs and ramp up production, as the intricacies and expenses of mining operations rise amid continuous supply chain challenges, inflation, and strict permitting processes. Codelco is actively pursuing further collaborations with the private sector to recover from a decline in production and increasing debt burdens.

Anglo has also faced production challenges in Chile, where the top copper-producing country has seen stagnation due to waning ore grades and a prolonged drought that has worsened water scarcity. Additionally, stringent permitting requirements have created obstacles, while some companies are postponing investments to evaluate the potential impacts of proposed tax hikes.

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