Codelco has agreed on terms and conditions with BHP for the exploration of its "Anillo" mine

Published: May 13, 2025 21:30

Save

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.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn

For more information on how to access our research reports, please contact:service.en@smm.cn

Related News

6 hours ago

Chile Allows Codelco to Retain Entire $2.42 Billion 2025 Profit as Copper Output Struggles

According to foreign media reports, Chile's government will allow state-owned copper producer Codelco to reinvest 100% of its 2025 profit, totaling approximately $2.42 billion, marking the first time the company has been permitted to retain all of its annual earnings since its establishment in 1976. The decision provides additional financial capacity for Codelco as it works to stabilise copper production while undertaking several capital-intensive projects aimed at extending the operating lives of its ageing mines. The company has accumulated more than $20 billion in debt, increasing pressure on its balance sheet as investment requirements remain elevated. In recent years, Codelco had typically been permitted to retain around 30% of its profits, with the majority transferred to the Chilean government. The financial support comes amid persistent weakness in Codelco's copper production. Following an internal review, the company revised its 2025 output to 1.308 million tonnes, almost 27,000 tonnes below its previous estimate. The revised figure represents Codelco's lowest annual production in nearly three decades and is approximately 19% below its 2021 output. Codelco's new leadership has indicated that improving profitability and project execution will take priority over pursuing aggressive production targets. The retained earnings are expected to provide greater flexibility to finance the company's investment programme internally, potentially reducing its reliance on additional borrowing while it works to improve operational performance. From a copper-market perspective, Codelco's ability to stabilise and eventually recover production remains significant given that the company accounts for around 5% of global copper supply. Allowing the miner to retain its entire 2025 profit strengthens its capacity to fund mine-renewal projects, but the impact on future copper supply will ultimately depend on whether the additional capital translates into improved project execution and a sustained recovery in production.

6 hours ago

8 hours ago

PT Freeport Indonesia Develops Kucing Liar Mine for Long-Term Copper and Gold Supply

According to foreign media reports, PT Freeport Indonesia is continuing development of the Kucing Liar underground copper-gold mine within the Grasberg minerals district in Central Papua, with initial mining targeted for 2029 and production expected to ramp up thereafter. The project is being developed as a long-term source of replacement supply as production from the Deep Mill Level Zone declines. Development of the underground deposit has been underway for several years and requires substantial investment in mine access and supporting underground infrastructure. Recent reports indicate that approximately $1.4 billion has already been invested, with a further roughly $4 billion expected through 2033 as development progresses. At full operating rates, Kucing Liar is expected to process approximately 130,000 tonnes of ore per day and produce around 750 million lb of copper annually, equivalent to roughly 340,000 tonnes, alongside approximately 735,000 oz of gold. Freeport-McMoRan currently estimates that the deposit could contribute more than 8 billion lb of copper through 2041. From a copper-market perspective, Kucing Liar represents a significant source of prospective long-term mine supply from the Grasberg district. Its development is particularly important because it is intended to help offset declining output from mature underground areas and sustain Freeport Indonesia's large-scale copper production over the longer term.

8 hours ago

11 hours ago

Downstream Raw Material Inventory Ample, Intraday Trading Sluggish [SMM Secondary Copper Daily Review]

11 hours ago