In a significant development for the mining industry, global commodity giants, Rio Tinto and Codelco, have formalized a joint venture, known as Nuevo Cobre. The partnership is set to explore and develop lithium resources in Chile, marking a new chapter in the mining sector.
The joint venture builds on an underground mining collaboration agreement between the two companies which was initially signed on 12 October 2022.
Rio completed the acquisition of PanAmerican Silver’s stake in Agua de la Falda and entered a joint venture with Corporación Nacional del Cobre de Chile to explore and potentially develop the company’s assets in Chile’s prospective Atacama region.
The acquisition, announced on 1 August 2023, comprises a 57.74% operating stake in Agua de la Falda for US$45M 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.
Rio Tinto chief executive Jakob 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.”
The partnership will explore and develop the assets of Agua de la Falda, a Chilean company that holds the historical Jeronimo project, located in the Atacama region of northern Chile. Codelco holds the remaining 42.26% interest in the company.
The partnership represents a significant investment in the exploration and development of lithium resources. Lithium is a critical component in the manufacturing of batteries for electric vehicles and renewable energy storage, sectors that are expected to grow exponentially in the coming years.
Additionally, the partnership between Rio and Codelco, two of the world’s largest mining companies, could set a precedent for future collaborations in the industry. By pooling their resources and expertise, the two companies can potentially accelerate the exploration and development of mineral resources, leading to more efficient and sustainable mining practices.
