Anglo American, Codelco finalize $5B Chilean copper mines deal

Anglo American (NGLOY), through its 50.1%-owned subsidiary, Anglo American Sur S.A., and Codelco, announce that they have entered into a definitive agreement to implement a joint mine plan for their adjacent copper operations, Los Bronces and Andina, in Chile. This agreement follows the memorandum of understanding signed and announced in February 2025 and has been unanimously approved by both Boards of Directors. The joint mine plan has been developed to unlock an additional 2.7 million tonnes of copper production over a 21-year period once relevant permits are in place, currently expected in 2030. The expected additional copper production of c.120,000 tonnes per year is to be shared equally, with c.15% lower unit costs relative to standalone operations and with minimal incremental capital expenditure. The transaction is expected to generate a pre-tax net present value uplift of at least $5B, to be shared equally between AAS and Codelco. The combined production from Los Bronces and Andina in 2024 would rank in the top 10 copper mines globally and once adjusted for the incremental c. 120.000 tonnes per year expected under the joint mine plan, it would rank within the top 5. A new operating company, jointly owned and jointly controlled by AAS and Codelco, will coordinate execution of the joint mine plan and optimize processing capacity across Los Bronces and Andina. Copper production and the economic benefits generated under the plan-as well as associated costs and liabilities-will be shared equally between AAS and Codelco. Each party will retain full ownership of its respective assets (including mining concessions, plants and ancillary infrastructure) and will continue to exploit their respective concessions separately. The transaction is subject to a number of conditions, including customary competition and regulatory approvals and implementation of the joint mine plan is subject to securing the relevant environmental permits. The shareholders of AAS are the Anglo American group (50.1%), the Mitsubishi Group (20.4%) and Becrux, a Codelco/Mitsui joint venture company (29.5%).