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Codelco, BHP Sign US$40M Copper Exploration Deal in Chile
Chilean state-owned miner Codelco and BHP have finalized an agreement to explore the Anillo copper project in northern Chile. BHP may invest up to US$40 million in geological studies and drilling across the 24,000-hectare property in the Antofagasta region.
Published: October 27, 2026
Agreement announced: October 26, 2026
Key Points
- Exploration investment: BHP may commit up to US$40 million to the Anillo copper project.
- Project area: Approximately 24,000 hectares in Chile's Antofagasta region.
- Exploration program: Geological studies, geophysical surveys, reconnaissance and drilling.
- Partnership: The finalized agreement follows an initial understanding announced in May 2025.
SEATTLE (Scrap Monster): Chilean state-owned copper producer Codelco and global mining company BHP have formalized an agreement to begin a new exploration phase at the Anillo copper project in northern Chile.
The agreement, announced October 26, 2026, allows BHP to invest up to US$40 million to investigate the mineral potential of the 24,000-hectare property in the Antofagasta region.
The companies initially announced their exploration partnership in May 2025. The latest agreement follows completion of the regulatory approvals required under Chilean Law No. 19,137 and was signed during London Metal Exchange Week.
BHP to Fund Geological Surveys and Drilling
The exploration program will include reconnaissance campaigns, geophysical surveys, geological investigations and drilling to evaluate the property's potential for future copper development.
The partnership combines Codelco's extensive mining concessions with BHP's technical expertise, financial resources and established mining infrastructure.
Codelco holds approximately 2.3 million hectares of mining properties across Chile and is seeking to develop selected opportunities through partnerships with international mining companies.
Jess Farrell, President of BHP North America and interim President of BHP South America, said the collaboration reflects the company's long-term commitment to expanding copper resources and supporting Chile's mining industry.
ScrapMonster Edge: Exploration Investment Is Not New Copper Supply
The Anillo agreement advances an early-stage exploration opportunity rather than an approved copper mine.
Although the property has undergone previous exploration, its commercial mineral potential has not yet been established.
The proposed US$40 million investment will support geological evaluation and drilling, but the companies have not announced a confirmed mineral reserve, production target or mine-development schedule.
Why it matters: The partnership could help identify future copper resources in one of the world's most important mining regions. However, any contribution to global copper supply would depend on successful exploration, economic studies, permitting and subsequent development investment.
Partnership Supports Codelco's Long-Term Exploration Strategy
Codelco said the agreement forms part of its strategy to create additional value from its mining portfolio while protecting the long-term interests of Chile and the state-owned company.
The structure allows Codelco to draw on external capital and technical expertise without independently financing every early-stage exploration opportunity.
If commercially viable copper resources are identified, BHP's existing operational capabilities could support further project development.
For now, the next important milestone will be the results of the geological surveys and drilling programs, which will help determine whether Anillo can advance beyond exploration.
