Codelco and BHP agree on the terms and conditions for exploring the "Anillo" mining property

The multinational mining company will explore the property at its own expense towards the objective of creating a partnership with the state-owned mining company if a favorable business case is determined and the relevant regulatory approvals are obtained.

Within the framework of Bank of America’s Global Metals, Mining & Steel Conference, BHP and Codelco announced an exploration agreement for the properties that the Chilean state-owned company owns in the Antofagasta Region.

This agreement is subject to meeting the requirements set forth by Law 19,137, which rules the conditions under which Codelco can partner with third parties to develop ore deposits that are not currently being mined nor forming part of the Corporation’s replacement or expansion plans.

In 2022, Codelco made available a portfolio of 34 exploration assets to interested companies so they could assess the possibility of establishing partnerships to develop projects that don´t meet the requirements for the Corporation to develop autonomously. 

The “Anillo” prospect is part of that portfolio, covering 24,000 hectares located in the Antofagasta Region. This property is in an early exploration stage and has undergone various exploration campaigns by Codelco and third parties in the past.

"The Corporation must focus and prioritize its exploration efforts and investments across its approximately 2.3 million hectares of mining property in Chile. We have some mining concessions with significant potential and, to accelerate their development, it requires adopting a collaborative approach aimed at capturing value through partnerships with third parties. In this case, with BHP, one of the leading global mining companies," explained Máximo Pacheco, Chairman of Codelco's Board.

BHP is ideally positioned to explore the project and, if successful, has a unique infrastructure capacity to accelerate its development. As part of the agreement, the multi-metal mining company may invest up to US$40 million to explore and study the mining potential of the properties. 

BHP CEO Mike Henry said “BHP is one of the world’s leading copper producers, a metal vital to development, decarbonisation and digitalisation. We are excited to explore this opportunity with Codelco in Chile, where we already have significant successful mining operations. Our ongoing commitment to innovation and our 140 year history in the development of mining projects position us strongly to work with Codelco to unlock more copper for the world”. 

Should a sustainable business case be determined, the agreement includes a promise of partnership with Codelco for project development. In the event that it does not prosper, all studies and the information obtained will remain as the property of Codelco.