Anglo American calls for faster approvals in Chile to reduce copper shortage

Anglo American Chile CEO Patricio Hdalgo stated on Tuesday that Chile must speed up its permit processes in order to expand copper mining ahead of the large supply gap anticipated in the next few years.

The Chilean president Gabriel Boric pledged to reduce the time it takes for permits by a third. However, a reform which would streamline the procedure is still being debated in Congress.

Many mining companies in Chile - which provides about a quarter the world's supply of copper - have called for a rapid passage of this initiative.

Anglo American is one of the largest miners in the world and was targeted by BHP, a bigger competitor, last year. In Chile, Anglo American operates Los Bronces, owns 44% Collahuasi and two of Chile's major copper mines.

Hidalgo stated that the demand for copper by 2040 is expected to be the same as the output of 80 Los Bronces Mines, due to the demands of energy transitions, emerging economies, and digitalization. Los Bronces produced 172,000 tons of copper by 2024.

He said, "When we see this structural gap or demand that will be on the copper market in the future, we must act much faster to get copper onto the market."

He also mentioned the possibility of partnerships that could help maximize production. For example, Anglo American recently agreed to share infrastructure with Codelco's Andina copper mine in the nearby Los Bronces mine.

Kathleen Quirk, CEO of Freeport-McMoRan, spoke about the deal at Tuesday's CRU copper conference, held in Santiago.

She told the conference that "we need to do more deals like this where we are sharing in essence."

Hidalgo believes that infrastructure sharing agreements in Chile could be expanded.

When you look at the Andean Corridor... you can see the many synergies that exist. This is an invitation to challenge certain paradigms within the sector." Reporting by Daina-Beth Solomon and Fabian Cambero, Editing by Jamie Freed

(source: Reuters)