Anglo American, Codelco Finalize Deal to Merge Adjacent Copper Mines

Anglo American (LSE:AAL,OTCQX:NGLOY) and Chile's Codelco have finalized an agreement to merge the mine plans for their adjacent Los Bronces and Andina copper operations in Chile.

The transaction follows a preliminary agreement signed in September 2025 and has cleared all remaining antitrust and regulatory approvals, according to a joint statement on Wednesday (June 25).

The unified mine plan is anticipated to add an average of 120,000 metric tons per year of incremental, low-cost copper production, split equally between the two companies.

Anglo American and Codelco expect the integration to generate at least US$5 billion in pre-tax value.

Final execution of the joint plan remains contingent on securing environmental permits, with full implementation scheduled to take place by 2030. Both major copper-producing companies will retain the rights to develop standalone projects and underground resources independently during the 21 year term.

“By integrating the Los Bronces and Andina mine plans, we are unlocking one of the most significant copper adjacency opportunities in the world," Anglo American CEO Duncan Wanblad said.

"Adjacencies such as these are rare and they highlight the role that responsible, partnership-led development can play — in this case supporting Chile’s ambition to lift national copper production to 6 million tonnes per year by 2030,” he added.

The deal comes after Codelco pitched a separate US$2 billion restructuring plan to merge three of its largest northern assets — Chuquicamata, Ministro Hales and Radomiro Tomic. The four year consolidation aims to extract US$2 billion in combined cost savings and revenue by 2027 via unified management and shared processing infrastructure.

These moves also come against a strong long-term backdrop for copper, which has reached fresh all-time highs this year, rising above US$14,000 per metric ton on the London Metal Exchange.

Prices are currently lower, with the base metal caught in a broader selloff triggered by a surging US dollar and last week's restrictive monetary policy guidance from the Federal Reserve.

However, experts continue to point to strong copper market fundamentals, with demand growing due to the energy transition and supply lagging due to a lack of investment in new mines.

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Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.