Chile already possesses the world’s number one copper mine: Escondida, which is followed by Grasberg in Indonesia.
By Pablo San Martín
The global mining industry will soon see the rise of a major new player: “Anglo Teck,” created through the merger of UK-based Anglo American and Canada’s Teck Resources, with a combined valuation of around US$50 billion. This agreement could position Chile as the site of the world’s second-largest copper mine, given the operational synergies expected between Quebrada Blanca and Collahuasi, two neighboring deposits.
Nonetheless, Chile already hosts the largest copper mine globally: Escondida, which for now isfollowed by Grasberg in Indonesia. The new group, both firms highlighted in a joint statement, “will be one of the world’s largest copper producers.” The companies intend to finalize the deal within 12 to 18 months, depending on regulatory hurdles.
Anglo shareholders will retain 62.4% of the merged company, while Teck shareholders will control 37.6%. According to Bloomberg, the deal represents a 17% premium over Teck’s share closing price on Monday. Anglo will also pay its investors a special dividend of around US$4.5 billion before the merger is completed.
Details of the Agreement
Anglo’s CEO, Duncan Wanblad, will lead the new company, while Teck’s CEO, Jonathan Teck, will serve as his deputy. The company will be headquartered in Vancouver, Canada, with corporate offices in London and Johannesburg.
Current employment levels in Canada will be maintained with no net reduction, and agreements with communities, Indigenous governments, and labor unions will be respected. The company also reaffirmed its long-term commitment to South Africa, maintaining significant board and executive representation, and supporting the country’s junior mining sector.
The merger remains subject to standard closing and regulatory conditions and is expected to be completed within 12 to 18 months. It has the unanimous support and recommendation of both boards of directors.
Anglo Teck anticipates that its combined annual copper production of 1.2 million tonnes in 2024 will increase by about 10% to nearly 1.35 million tonnes by 2027. The group will also be a significant producer of premium iron ore, totaling 61 million metric tonnes, and one of the largest global producers of mined zinc, with assets such as Red Dog and Trail Operations.
The company will also focus on the development of crop nutrients, particularly through the Woodsmith project in the United Kingdom, as well as other critical minerals such as germanium. In addition, Anglo Teck has committed to investing at least CAD$4.5 billion over five years in Canada, including the life extension of Highland Valley Copper, upgrades at Trail Operations, and the advancement of copper projects in British Columbia. Investments will also be made in critical mineral exploration, innovation, training, and research.
Operations in Chile
Anglo Teck will have a significant presence in Chile with several world-class copper operations, as both Anglo American and Teck already have operations in the country.
Collahuasi, currently 44% owned by Anglo American, and Quebrada Blanca, 60% owned by Teck (with Codelco holding 10%), will be among the key assets in this new process.
“In Chile, the impact would be particularly significant. One of the keys to the merger lies in the operational synergies between the adjacent Quebrada Blanca and Collahuasi mines,” said Patricio Faúndez, head of Economics at GEM Mining Consulting.
He added that, according to both companies, these synergies would allow for an additional 175,000 tonnes of annual copper production in the long term, potentially generating nearly US$1.4 billion in additional EBITDA each year. Taking this into account, he noted that “with the agreement signed by Anglo and Teck, due to operational synergy—and this is one of the main levers of the deal—you increase long-term production by 175,000 tonnes of copper. That would surpass Grasberg, leaving Chile with Escondida, by far the largest mine, and then this joint operation between Collahuasi and Quebrada Blanca as the second.”
Juan Carlos Guajardo, executive director of Plusmining, shares a similar perspective. In his view, “the greatest potential impact lies in the district-level synergies between the adjacent Collahuasi and Quebrada Blanca 2 operations, capable of consolidating a world-class copper cluster in Tarapacá, which, when combined, would likely rank among the three largest copper mines in the world.”
“For Chile, the tangible benefit is more production and lower costs, by integrating operations separated by only a few kilometers through shared infrastructure, plants, and logistics, and optimizing inputs such as water and energy,” he added.
Los Bronces, also owned by Anglo American, is another world-class asset, in which Anglo Teck will hold a 50.1% stake. NuevaUnión, a Teck project, is also part of the company’s portfolio.
Chile’s state-owned copper producer Codelco also welcomes the merger, as the two merging companies are both partners. Codelco holds 10% of Teck’s Quebrada Blanca and about 20% of Anglo American Sur, which controls Los Bronces. Therefore, Codelco will also indirectly participate in this new global mining giant.
“This integration includes extraordinarily valuable assets such as Quebrada Blanca and Los Bronces, strengthening Chile’s position as the undisputed leader in copper production,” said Codelco chairman Máximo Pacheco.
Source: EMOL