Chilean state-run copper giant Codelco (COBRE.UL) and London-listed miner Anglo American signed a memorandum of understanding to jointly operate neighboring copper mines in central Chile, the companies announced on Thursday.

They will jointly develop their adjacent Los Bronces and Andina mines,in a bid to boost copper production without major investments.

The companies aim to enhance efficiency, resource utilisation and sustainability while maximising copper production in the region.

The joint operation is projected to generate a minimum pre-tax net present value (NPV) uplift of $5 billion over the life of the agreement, which will be equally shared between both companies.

Anglo American Plc has signed a pact with Chile’s state mining company Codelco to jointly develop their adjacent Los Bronces and Andina operations.