Anglo American Copper Output Rises as Chile Offsets Quellaveco Grade Decline

Anglo American, Copper

Anglo American copper output rose slightly in the first quarter as stronger Chilean mine performance offset lower grades at Quellaveco in Peru. The global mining group produced 170,400t of copper during the quarter, up 1% from a year earlier.

Anglo American copper output was supported by higher throughput at Los Bronces and Collahuasi, along with improved recoveries at Collahuasi. Chilean copper production increased by 9% to 97,000t, while Peruvian output fell by 8% to 73,400t.

Anglo American copper output remains on track with unchanged 2026 guidance of 700,000-760,000t. The company had already lowered that target in February because of expected lower grades at Collahuasi.

The result confirms that copper remains Anglo’s strategic centre as the group continues reshaping its portfolio. Nickel is moving toward disposal, manganese is recovering from weather disruption, and copper is becoming the company’s clear lead business.

Los Bronces and Collahuasi Support Chilean Copper Performance

Los Bronces output rose by 12% to 48,500t after the restart of its second plant. The restart improved throughput and gave Anglo a stronger base in Chile during the quarter.

Collahuasi also delivered a stronger result. Anglo’s attributable share of production rose by 10% to 38,800t, supported by higher throughput and improved recoveries.

These gains helped offset weaker output from Quellaveco. The Peruvian mine faced expected lower grades, reducing copper production despite its importance as one of Anglo’s major growth assets.

The first-quarter result shows how copper production increasingly depends on ore grade, plant availability and recovery performance. Higher throughput can support output, but grade decline remains a major constraint across the industry.

Anglo’s growth is still weighted toward the second half of the year. Market attention will focus on Collahuasi’s return to higher-grade ore, the ramp-up of desalination capacity and the continued benefit from Los Bronces’ second plant restart.

The proposed merger with Teck Resources also remains important. Anglo said the deal is still on track for completion between September 2026 and March 2027. South Korean approval has been secured, leaving Chinese anti-monopoly clearance as the final major regulatory hurdle.

If completed, the merger would deepen Anglo’s copper exposure and reinforce the industry trend toward scale in high-quality copper assets.

Nickel Falls as Manganese Rebounds From Weather-Hit Base

Anglo’s nickel production fell by 7% year on year to 9,100t because of maintenance at Barro Alto and Codemin in Brazil. Barro Alto output declined by 7% to 7,500t, while Codemin fell by 6% to 1,600t.

The company expects nickel production to improve gradually from the second quarter. However, nickel is no longer central to Anglo’s long-term portfolio strategy.

Anglo is still working through the European Commission’s anti-monopoly review of the agreed sale of its nickel assets to MMG Singapore Resources. The deal is worth up to $500mn.

Manganese ore output rose sharply from a weak base. Anglo’s 40% attributable production jumped by 118% to just over 759,000t after operations recovered from the disruption caused by tropical cyclone Megan in early 2025.

Sales volumes rose even more strongly, increasing by 217% to 946,000t. However, weather still affected the business, with second-quarter output down 16% from the fourth quarter of 2025 because of adverse weather and cyclone Narelle.

The portfolio direction is now clearer. Anglo is prioritising copper and iron ore while continuing sale processes for steelmaking coal and De Beers. Nickel is becoming a disposal asset, and manganese remains a recovery story after weather-related disruption.

For copper markets, Anglo’s modest first-quarter increase is less important than its second-half execution. The company needs stronger grades, stable plant performance and project discipline to support its full-year copper target.

The Metalnomist Commentary

Anglo American’s first quarter shows that copper growth is increasingly a quality-of-ore and processing-efficiency story. The strategic focus now shifts to whether Collahuasi, Los Bronces and the Teck merger can turn Anglo into a more copper-led mining company.

Codelco and Anglo American Unite to Boost Chilean Copper Output

Codelco

Andina and Los Bronces to Jointly Target 1 Million Tonnes by 2030s

Strategic Collaboration Taps 60mn t of Contained Copper in the Andes

Codelco, Chile’s state-owned copper giant, has signed a memorandum of understanding with Anglo American’s 50.1%-owned AAS subsidiary to integrate operations at the Andina and Los Bronces mines. This joint strategy will target a combined production increase of 120,000 tonnes of fine copper per year from 2030 through 2051.

Ambitious Output Plan Sets 2030s Benchmark

According to Anglo American CEO Duncan Wanblad, the collaboration lays a clear pathway to producing over 1 million tonnes of copper annually by the early 2030s, representing a 30% increase from current output. This positions both firms as key players in meeting the world's growing copper demand driven by energy transition and electrification.

Together, Los Bronces and Andina account for 60 million tonnes of contained copper, or roughly 2% of global copper resources and reserves, underscoring the strategic weight of the partnership.

Staggered Output Performance Precedes Consolidation

In 2023, Los Bronces produced 172,000 tonnes, marking a 20.4% drop following a temporary care and maintenance phase starting in July. Meanwhile, Andina produced 181,600 tonnes, a 10% increase year-over-year, according to Chile’s Cochilco.

Despite these fluctuations, the integration plan remains on track. The companies expect to sign a definitive operational agreement in the second half of 2025, with current mine operations continuing uninterrupted until then.

This deal marks a significant shift toward operational consolidation in one of the world’s richest copper belts. It aims to improve efficiency, secure long-term output, and reinforce Chile’s dominance in the global copper market amid rising supply chain concerns.

Chile Takes Legal Action Against Anglo American Over Environmental Breaches at Los Bronces Mine

Anglo American

Chile's environmental authority, SMA (Superintendencia del Medio Ambiente), has initiated legal proceedings against the Anglo American-operated Los Bronces copper mine, citing significant non-compliance with environmental regulations. This move underscores increasing regulatory scrutiny on mining operations in one of the world's largest copper-producing countries.

Charges and Compliance Failures

The environmental superintendency has filed four charges related to the mine's handling of waste and tailings management systems, particularly at the Donoso Norte Waste Dump and the Las Tortolas tailings dam's infiltration control system. The allegations include the improper management of acid drainage at the waste disposal site, insufficient restitution measures for acid water collected downstream, and failure to implement adequate infiltration control measures. Furthermore, Anglo American is accused of not submitting required environmental data within the stipulated deadlines.

These breaches could lead to fines amounting to as much as 17 billion Chilean pesos (approximately $17.2 million USD), marking a significant financial penalty should the charges hold in proceedings. Anglo American has been given up to 15 business days to present a compliance program and 22 business days to prepare its defense.

Operational Status and Company Response

Despite the legal challenges, Anglo American has stated that operations at Los Bronces continue as usual. The company is currently reviewing the SMA's resolution to determine appropriate next steps and maintains that although the Donoso dump is not in use, it has implemented effective transitory measures for controlling contact waters.

Los Bronces, an important open-cut copper and molybdenum mine located in Chile's metropolitan region, plays a critical role in the local and global copper market. It reported a production of over 215,500 metric tonnes of copper in 2023, according to Anglo American's website. The mine's significant output and expected lifespan of 30 years highlight its importance, not just to Anglo American but to the global copper supply chain.

Anglo American Codelco Chile copper deal reshapes a top-tier mine complex

Anglo American Codelco

The Anglo American Codelco Chile copper deal will turn Los Bronces–Andina into a true global copper powerhouse. The Anglo American Codelco Chile copper deal integrates mine planning between the adjacent operations and targets 120,000 t/yr of extra copper. As a result, the Anglo American Codelco Chile copper deal could unlock at least $5bn in cost savings over 21 years.

Anglo American Codelco Chile copper deal targets more metal at lower unit costs

The agreement aligns long-term mine plans at Los Bronces and Andina to optimise ore scheduling and processing. A joint plan is expected to deliver an additional 2.7mn t of copper from 2030 over 21 years. Therefore, the complex should cut unit costs by up to 15pc versus standalone strategies, with little extra capital.

Combined Los Bronces–Andina output already ranks among the world’s top 10 copper mines. The planned production uplift would push the integrated complex into the global top five. A new jointly owned operating company will manage planning and processing optimisation across both mines. However, each partner will still retain ownership of its own concessions and physical assets.

Under the Anglo American Codelco Chile copper deal, output, costs and liabilities will be shared equally. Anglo American Sur, which operates Los Bronces, remains 50.1pc owned by Anglo American, 20.4pc by Mitsubishi and 29.5pc by Becrux, Codelco and Mitsui’s joint venture. Both sides also keep the option to advance separate underground projects in parallel, preserving flexibility for future expansions.

Strategic timing as Chilean copper supply and Anglo’s portfolio evolve

The timing of the Anglo American Codelco Chile copper deal coincides with tight copper supply and rising prices. Markets are closely watching long-term additions in Chile, given strong demand from energy transition and data centre infrastructure. Therefore, a low-capex, brownfield uplift at an existing complex looks especially attractive to investors and customers.

Implementation still depends on regulatory and environmental approvals, which both firms expect to secure by 2030. Chilean authorities will scrutinise water, emissions and community impacts, especially in the high Andes. However, the partnership structure signals a willingness to share not only upside, but also ESG responsibilities. This is increasingly important as financiers and OEMs demand clearer sustainability performance from large copper suppliers.

The deal also follows Anglo American’s recently announced merger with Teck to create Anglo Teck Group. That transaction would consolidate a major iron ore, copper and zinc business with a much deeper project pipeline. In that context, the Anglo American Codelco Chile copper deal strengthens the future group’s position in premium Chilean copper. It also deepens Anglo’s relationship with Codelco, the world’s largest copper producer and a key state partner.

The Metalnomist Commentary

This agreement shows how value in copper is shifting from greenfield megaprojects to smarter integration of existing belts. By coordinating mine plans and plant utilisation, Anglo and Codelco aim to extract more metal with less new capital and lower unit costs. Market participants should watch the permitting pathway and any future expansion of this model to other Chilean districts as a template for collaborative de-risking.

Anglo American Reports 3Q Decline in Copper Output but Revises Nickel and PGM Guidance Upwards

Anglo American

Anglo American, the UK-South African mining giant, experienced a 13% year-on-year decline in copper production during the third quarter of 2024, with output falling to 181,000 tons. The decrease was primarily attributed to reduced production at its mines in Chile and Peru.

Copper Production Highlights

• Peru’s Quellaveco Mine: Output fell 21% to 68,700 tons due to lower grades and recoveries. Production is expected to rebound in the fourth quarter.
• Chilean Operations: Output dropped 7% to 112,600 tons, driven by the planned closure of the Los Bronces plant in July, where production fell 20%. However, higher grades at El Soldado boosted output by 16%, partially offsetting the losses.

Total copper production for the year to date reached 575,000 tons, down 4% year-on-year. The company remains on track to meet its full-year production guidance of 730,000-790,000 tons, split between 430,000-460,000 tons from Chile and 300,000-330,000 tons from Peru.

Platinum Group Metals (PGMs) Performance

• PGMs in Concentrate: Production dropped 10% to 922,000 ounces due to lower output at South Africa’s Mogalakwena and Amandelbult mines. Higher production at Zimbabwe’s Unki mine partially offset these declines.
• Refined PGMs: Production rose 22% to 1.11 million ounces, supported by stability in processing operations.

Anglo American revised its full-year refined PGM production guidance upward to 3.7-3.9 million ounces, from the earlier estimate of 3.3-3.7 million ounces.

Nickel Production Trends

Nickel output increased 6% to 9,900 tons during the quarter, driven by operational improvements at the Barro Alto plant in Brazil. Year-to-date nickel production reached 28,900 tons, up 2%.

The company raised its full-year nickel production guidance to 38,000-39,000 tons, up from its earlier range of 36,000-38,000 tons.

Outlook

Anglo American’s diversified portfolio continues to offset challenges in copper production with strong performance in nickel and PGMs. While facing difficulties in its copper operations, the upward revisions in nickel and PGM guidance underscore the company’s adaptability and operational resilience.

Anglo American Faces Decline in Copper, Nickel, and PGM Output in 2024

Anglo American

Decreased Production from Chile, Peru, and South Africa Affects Key Metals

Anglo American, the UK-South African mining giant, reported a drop in its copper, nickel, and platinum group metals (PGMs) output for 2024. This decline, particularly from its assets in Chile, Peru, and South Africa, reflects challenges faced in production and ongoing operational adjustments.

Copper Production Decline Driven by Chile and Peru

Anglo American’s total copper output for 2024 decreased by 6%, reaching 772,700 tonnes. Copper production in Chile dropped by 8% to 466,400 tonnes, with a 20% decline at the Los Bronces mine, which was placed on care and maintenance in July. Additionally, production at the Collahuasi mine fell by 3%, though higher grades at El Soldado partially offset these declines, with a 22% output increase.

In Peru, the Quellaveco mine saw a 4% reduction in copper output to 306,300 tonnes, due to lower grades and recoveries. Anglo American’s Q4 copper output also saw a notable drop, decreasing by 14% to 197,500 tonnes compared to the previous year.

Looking ahead, the company projects copper production to range between 690,000 and 750,000 tonnes in 2025, with an expectation of increasing production to 760,000 to 820,000 tonnes in 2026 and 2027.

Nickel and PGM Production Challenges

Nickel output for Anglo American fell by 2% in 2024, totaling 39,400 tonnes. A 13% drop in production at the Codemin site in Brazil was partially offset by a 2% increase at the Barro Alto plant due to operational improvements. In Q4, nickel production declined by 10%, amounting to 10,000 tonnes, primarily due to planned lower grades.

The company also faced a 7% decline in PGM production from its operations, including mines in South Africa and Zimbabwe. Full-year production of PGMs in concentrate decreased to 3.55 million ounces. However, refined PGM production rose by 3%, reaching 3.92 million ounces in 2024. In 2025, Anglo American expects to produce between 3 million and 3.4 million ounces of PGMs.

Manganese Ore Decline and Future Expectations

Anglo American’s manganese ore production fell sharply by 38% to 2.29 million tonnes in 2024. This was largely due to the suspension of Australian operations following damage caused by Tropical Cyclone Megan in March.

Despite the setbacks in 2024, the company’s projections for future production of copper, nickel, and PGMs indicate a positive outlook for 2025 and beyond, as it continues to adjust operations and focus on optimizing output at key sites.