Codelco announced on its website that at the Bank of America Merrill Lynch Global Metals, Mining & Steel Conference, BHP and Codelco unveiled an exploration agreement targeting the state-owned company's assets in the Antofagasta region.
The agreement is subject to the requirements stipulated in Law No. 19,137, which outlines the conditions for Codelco to collaborate with third parties in developing mining projects that are not currently operational or are not part of the company's decision to allocate them to its replacement or expansion plans through direct development.
In 2022, Codelco offered 34 exploration assets to interested companies to assess the possibility of collaborative development for projects that do not meet the criteria for independent development by the company.
This portfolio includes the "Anillo" mining area, located in the Antofagasta region and spanning 24,000 hectares. The mine is currently in the early exploration stage, with Codelco and third parties having conducted multiple exploration activities there in the past.
"The company must focus on and prioritize its exploration and investment efforts within the approximately 2.3 million hectares of mineral resources it holds in Chile. We possess some highly promising mining concessions, and to expedite their development, we must advance collaborative approaches aimed at capturing value through partnerships with third parties. Our collaboration with BHP, one of the world's largest mining companies, is an example of this," explained Maximo Pacheco, Chairman of Codelco's Board of Directors.
BHP has unique advantages in exploring this project, and if successful, it will possess unique infrastructure capabilities to accelerate the project's development. As part of the agreement, the polymetallic mining company will be able to invest up to $40 million to explore and study the mining potential of the ore deposit.
Mike Henry, CEO of BHP, stated, "BHP is one of the world's leading copper producers, and copper is a crucial metal driving economic development, decarbonization, and digitalization. We are delighted to explore this collaborative opportunity with Codelco, with whom we already have a significant and successful mining presence in Chile. Our ongoing commitment to innovation and our 140 years of experience in mining project development enable us to partner with Codelco to deliver more copper to the world."
If a sustainable business case is established, the contract will include a commitment to collaborate with Codelco in developing the project. If the application is unsuccessful, the research and information obtained will become the property of Codelco.
