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.

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

Anglo American Plc has signed a pact with Chile’s state copper company Codelco to jointly develop their adjacent mines near Santiago in a bid to boost production without major investments.Most Read from BloombergTrump to Halt NY Congestion Pricing by Terminating ApprovalSorry,

Chilean state-run copper giant Codelco and London-listed miner Anglo American are set to announce a deal to jointly operate neighboring copper mines in central Chile, according to a report by newspaper La Tercera late on Wednesday.

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

ANGLO American today announced plans for a joint mine plan with Codelco in Chile that will see the partners produce 2.7 million tons of additional copper over 21 years from 2030. A memorandum of understanding has been signed between Anglo’s 50.

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.