The MoU establishes the framework for Glencore to prepare a pre-feasibility study and negotiate definitive agreements.
The Swiss-based multinational was selected as the preferred bidder after a highly competitive process, which confirmed industry interest, generated valuable market intelligence, and reinforced the strategic relevance of the initiative.
The project includes the design, financing, construction, operation and maintenance of the new plant, which will have an estimated processing capacity of 1.5 million dry tpy, in addition to solid operational and environmental standards.
As part of the agreement, Codelco has committed to negotiating a copper concentrate supply contract for up to 800 000 tpy, for a minimum period of one decade, with options to extend it for an additional 10 years, subject to negotiation between the parties.
Máximo Pacheco, Chairman of the Board of Codelco, stated that the signing of this Memorandum of Understanding represents “a significant step for the Chilean mining industry, which will allow us to advance in the development of new smelting capabilities, aligned with the sustainability and global leadership objectives promoted by our industry. We are convinced that this project will benefit not only our company, but the entire sector and the country. At Codelco, we firmly believe that, in a world where critical minerals are the foundation of the energy transition, strengthening smelting capacity also strengthens Chile's sovereignty and strategic security in the face of global challenges.”
“We believe this is a good initiative for Chile’s current and future mining ecosystem. The proximity of the new smelter to other copper-producing companies will provide logistical advantages, operational flexibility, and the possibility of capturing added value by refining concentrates close to the production source,” he explained.
Gary Nagle, Global CEO of Glencore, stated: “We are delighted to have been selected as Codelco’s strategic partner for this landmark project. It demonstrates our long-term confidence in Chile, a country where we have been a significant investor in the mining industry for many years. We look forward to establishing a successful long-term business partnership with Codelco and bringing this exciting project to fruition.”