Tag Archives: Maximo Pacheco

Rio Tinto and Codelco formalise Nuevo Cobre joint venture

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Rio Tinto has today completed the acquisition of Pan American Silver’s stake in Agua de la Falda and entered a joint venture with Corporación Nacional del Cobre de Chile (Codelco) to explore and potentially develop the company’s assets in Chile’s prospective Atacama region.

The acquisition, announced on August 1, 2023, comprises a 57.74% operating stake in Agua de la Falda for $45 million and the grant of net smelter returns royalties. It paves the way for Rio Tinto and Codelco to start its joint exploration project at the asset.

Jakob Stausholm (left), Rio Tinto Chief Executive, and Maximo Pacheco (right), Chairman, Codelco, today met in Tokyo to formalise the new joint venture, which will be known as Nuevo Cobre (New Copper).

Stausholm said: “Chile is one of the most important sources of the copper and other critical minerals the world needs to deliver the energy transition and achieve net zero. With this partnership, we are bringing together our complementary experience and capabilities. Codelco’s local knowledge and expertise is second to none and we have a global track record in exploration. I am very much looking forward to getting our work on the ground started.”

Pacheco said: “This is an unbeatable opportunity for Codelco and Rio Tinto to join our knowledge, experience, strengths and capabilities to accelerate exploration and development of these assets to contribute the copper that the world needs for its energy transition. We are very pleased to formalise this partnership with Rio Tinto and acknowledge our mutual commitment to following the best standards of health, safety, community relations and care for the environment.”

Agua de la Falda has previously been explored for precious metals with minimal modern exploration for copper. Analysis by Rio Tinto Exploration indicates it is prospective for new copper discoveries, which will now be the focus of the joint venture.

The partnership builds on a collaboration agreement between the two companies signed in October 2022, aimed at encouraging innovations and technology to improve safety, productivity and environmental, social and governance outcomes in underground mining.

Rio Tinto and Codelco to jointly develop Agua de la Falda exploration assets

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Rio Tinto has agreed to purchase Pan American Silver’s stake in Agua de la Falda S.A., as well as enter a joint venture with Corporación Nacional del Cobre de Chile (Codelco) to explore and potentially develop the exploration tenements in Chile’s Atacama region that are held under this company.

Under the agreement, Rio Tinto will acquire Pan American’s 57.74% operating stake in Agua de la Falda for $45 million and the grant of new smelter returns royalties. Rio Tinto will also acquire 100% of nearby concessions known as the Meridian Property for $550,000 and the grant of new smelter returns royalties.

Codelco, which is the world’s largest copper producer and is owned by the Chilean State, holds the remaining 42.26% of Agua de la Falda.

Rio Tinto Chief Executive, Jakob Stausholm, said: “Partnerships are essential to find better ways to provide materials the world needs, and we are pleased we can bring our global exploration capability to a joint venture that will be able to access Codelco’s strong local presence and industry expertise.

“Although this is an early-stage exploration project, we are very excited to be actively exploring in Chile in partnership with Codelco.”

Codelco Chairman, Maximo Pacheco, said: “Codelco welcomes Rio Tinto in Agua de la Falda. This is a remarkable opportunity to put two leading mining companies to work together, leveraging the combined experiences, strengths and capabilities of each organisation. By joining forces, we can enhance our exploration and development efforts for a highly promising asset.

“Public-private partnerships have proven to be successful for Codelco and Chile for many years, and we are convinced that this is a compelling alternative to move a project forward and to complement the significant exploration and project portfolio being developed exclusively by Codelco.”

The joint venture builds on an underground mining collaboration agreement between Rio Tinto and Codelco signed on October 12, 2022, aimed at encouraging innovations and technology to improve safety, productivity and environmental, social and governance outcomes.

Agua de la Falda has previously been explored for precious metals with minimal modern exploration for copper. Analysis by Rio Tinto Exploration indicates it is prospective for new copper discoveries, which will now be the focus of the joint venture, Rio says.