The state-owned Chilean copper producer Codelco and Swiss mining company Glencore have signed a memorandum of understanding to jointly develop a new copper smelter in Chile’s Antofagasta region. 

Under the agreement, Coldelco will provide copper concentrate for the smelter, to be built by Glencore, with a capacity to process around 1.5 million tons annually. Besides, Codelco would supply up to 800,000 tons per year for at least ten years.

Glencore will now start a pre-feasibility study, and both companies aim to finalize a binding agreement by the first half of 2026. If approved, construction would begin in 2030, with production scheduled to start between 2032 and 2033. 

The partnership was the result of a competitive bidding process that selected Glencore as the preferred partner. The project is seen as an intended move to boost Chile’s domestic smelting capacity and strengthen its sovereignty and strategic security.