Chile’s state-owned mining giant, Codelco, has made a strategic move to solidify its position as the world’s leading copper producer by offering $500 million to acquire a stake in a major mining operation. The offer, which targets a 10% share in the Quebrada Blanca mine currently operated by Teck Resources Ltd., is under consideration by the board of Chilean state firm Enami, according to sources familiar with the matter.
The proposal, which remains confidential, aims to secure the stake from Enami, helping the struggling state firm to alleviate its financial burdens. Over the years, Enami has faced significant losses due to its involvement in processing minerals for small-scale miners, a challenge that has led to mounting debt. The potential sale would not only help Enami reduce its liabilities but also minimize the need for additional public funding.
For Codelco, this acquisition is crucial. The company has seen its copper production drop to its lowest level in 25 years, putting its position as the top global copper supplier at risk. Acquiring a stake in Quebrada Blanca would provide a much-needed boost to its output, possibly helping it fend off competition from mining giants like BHP Group, which is vying for the top spot.
Despite the potential benefits for both Codelco and Enami, the deal faces opposition. The National Mining Society (Sonami), which holds a seat on Enami’s 10-member board, has expressed concerns. Sonami insists that any sale of Enami’s assets should be conducted through an open and competitive process, rather than a private negotiation.
Codelco and Enami have both declined to comment on the ongoing discussions. The potential acquisition was first hinted at in July by the Chilean newspaper La Tercera, but the details of the offer are only now coming to light.
As Codelco seeks to strengthen its global dominance, the outcome of this proposal will be closely watched by the mining industry, both in Chile and internationally.
