Codelco and Anglo American Plan Unique Twin Approval Strategy for Chile Copper Project

Codelco and Anglo American Plan Unique Twin Approval Strategy for Chile Copper Project

 

Two of the world’s major mining companies, Codelco and Anglo American, are preparing an unusual approach to move forward with a large joint copper mining project in Chile. Instead of submitting a single environmental proposal, the companies plan to file two separate but nearly identical applications to speed up approval.

The project, known as the Andina–Los Bronces development, aims to combine operations from two existing mines into one large open pit. Chile is the world’s biggest copper producer, and this collaboration could significantly increase output at a time when global demand for copper is rising.

According to documents seen by Reuters, both companies will submit their environmental studies to Chilean regulators later this year. This “dual-track” strategy is being described as unprecedented in the mining sector. The goal is to reduce delays and simplify the approval process while still following legal requirements.

The companies originally considered submitting a single joint application. However, Chile’s legal framework makes this difficult. As a state-owned company, Codelco must retain full control over its mining rights. Because of this rule, a shared filing was not considered legally possible.

Instead, each company will apply separately, even though the proposals will be almost identical. In areas where their operations overlap, both firms plan to follow the same environmental standards and protections. This approach could allow the project to move forward faster while keeping both companies compliant with national regulations.

The joint project is expected to produce about 120,000 metric tons of copper per year between 2030 and 2051. It could also generate at least $5 billion in value before taxes, making it one of the most important mining developments in the region.

Under the plan, the two adjacent mines—Andina and Los Bronces—would effectively merge into one large pit. The rock barrier currently separating them would be removed, allowing for a single, continuous mining operation. However, each company would still maintain control over its own processing facilities and waste management systems.

For example, the extracted copper ore could be sent to either company’s processing plants, depending on operational needs. At the same time, waste materials would still be handled separately by each company. This setup allows for shared efficiency while preserving independence.

The companies believe this integrated approach will reduce costs and environmental impact. By sharing infrastructure such as pipelines and support systems, they can avoid building duplicate facilities. This could also help conserve water and reduce pressure on the surrounding environment.

However, the plan is not without challenges. Both companies acknowledged several risks in their proposal. One major concern is the need for close coordination with regulators, which could be difficult given Chile’s already slow environmental review process.

There is also concern about public reaction. The project is expected to attract significant attention due to its size and potential environmental impact. Critics, including environmental groups and local communities, may argue that submitting two separate applications could make it harder to fully understand the project’s overall impact.

The Los Bronces mine has already faced scrutiny in the past over issues such as air quality, water use, and its effect on nearby glaciers in the Andes mountains. These concerns could resurface as the new project moves forward.

Additionally, using two applications could lead to overlapping or unnecessary environmental requirements. While the companies say their approach reduces the risk of missing impacts, it could also create extra layers of regulation.

Despite these concerns, both Codelco and Anglo American remain confident in their strategy. They plan to begin discussions with local communities and other stakeholders later this year to address concerns and gather feedback.

If successful, this twin-application model could set a new example for how large mining projects are developed in the future. Other companies facing similar legal and operational challenges may adopt a similar strategy to balance efficiency with regulatory compliance.

As global demand for copper continues to grow—especially due to its importance in renewable energy and electric vehicles—projects like Andina–Los Bronces could play a key role in meeting future supply needs.

For now, all eyes will be on Chilean regulators and how they respond to this innovative but complex proposal.

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