“This is one of the most important mining news stories in recent years,” said Juan Carlos Guajardo, Executive Director of Plusmining.
By Pablo San Martín
The agreement between Codelco and Anglo American, which will enhance the development of the Andina-Los Bronces mining district and increase copper production without substantial additional investments, has been met with strong approval from both the industry and experts.
Industry representatives, particularly the National Mining Society (Sonami), stated that the agreement “demonstrates the industry’s ability to engage in dialogue, work together, and reach agreements that ensure the continuity and sustainable development of this crucial sector for the national economy.”
“We are constantly promoting cooperation among various sector players, where geographic or operational synergies can benefit not only business but also local communities and smaller operations. However, progress is often hindered by current regulations, such as those related to shared infrastructure,” added Riesco.
He further emphasized that “the scope and objectives of this productive alliance present significant challenges for environmental authorities and regulatory agencies, which must grant the necessary approvals. They should play a facilitating and cooperative role rather than creating obstacles or excessive delays. We hope this agreement is processed and approved swiftly.”
A Unique Opportunity
From an expert perspective, Juan Carlos Guajardo, Executive Director of Plusmining, highlighted that “the real value creation here is that both companies have realized they can operate this deposit as a unified entity. Everything that was previously ‘left untapped’ due to the inability to develop it jointly can now be extracted.”
He further stated that “this is one of the most important mining news stories in recent years. It is on par with the announcement of a world-class discovery or the launch of a major mining project.” He also noted that “without this plan, a significant amount of wealth—under highly favorable mining conditions—would have remained untapped.”
Ronald Guzmán, a professor of Civil Mining Engineering at UDD, also praised the agreement, calling it “very good news, as this alliance will enable better utilization of mineral resources in one of the world’s largest copper deposits. In my opinion, it will also enhance cost management, integrate extraction and processing operations, and establish a short- term reserve consumption strategy—ultimately allowing for increased copper production at more competitive costs.”
The project, he explained, involves “defining a strategy to maximize mineral resource extraction in the short term. Current open-pit mining and property boundaries prevent the removal of certain mineral-rich areas, essentially leaving behind a ‘pillar’ of untapped ore. By joining forces, both companies can now access and process these resources.”
“The direct result of this joint mining plan,” he added, “will likely be an increase in ore production and processing rates—something that would not have been achievable had the companies operated separately.”
Marcel Praises the Initiative
During a press conference yesterday, Finance Minister Mario Marcel also expressed his support for the initiative.
“Amidst the current economic climate, this might not receive the full attention it deserves. However, this is a prime example of public-private collaboration to develop a mining district where both a state-owned and a private company operate side by side,” he stated.
“This agreement will generate a combined value increase of approximately $5 billion for these companies,” he added.
Source: Emol