Iconic South African company eyes Chilean copper boom

Anglo American has signed a pact with Chile’s state mining company Codelco to jointly develop their adjacent Los Bronces and Andina operations.

The joint mine plan will increase copper production, generating a projected net present value pretax boost of at least $5 billion (R92 billion) to be shared equally, Anglo said in a statement on Thursday.

Last year, Anglo announced a restructuring that would leave its business focused on iron ore and copper, as the mining giant fended off a $49 billion approach from BHP Group.

“Copper is at the forefront of our growth ambitions, and we already have a clear pathway to more than 1 million tons of annual copper production by the early 2030s, which is a 30% increase,” Chief Executive Officer Duncan Wanblad said.

Mining companies around the world are forging partnerships to bring down costs and boost output as mines and projects get trickier and pricier at a time of lingering supply-chain disruptions, inflation and heavy permitting.

Codelco is exploring more partnerships with the private sector as Chile’s state copper behemoth looks to recover from a production slump and surging debt.

Anglo has also faced production challenges in Chile. The top-producing nation has seen output stagnate as ore grades deteriorate and a prolonged drought exacerbates water constraints.

Tough permitting is another obstacle, while some companies have held off on investments to see how efforts to raise taxes pan out.