Finance
Codelco and Glencore agree to partner on Chilean smelter project
Published by Global Banking & Finance Review®
Posted on December 3, 2025
2 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on December 3, 2025
2 min readLast updated: January 20, 2026
Codelco and Glencore partner on a $1.5-$2 billion smelter project in Chile's Antofagasta region to enhance copper processing capacity.
SANTIAGO, Dec 3 (Reuters) - Chile's state-run copper producer Codelco and Glencore, a Swiss trader and miner, have signed an initial agreement to collaborate on a smelter project in Chile, the companies said on Wednesday.
The deal calls for Codelco to provide copper concentrate and for Glencore to build the smelter in the key mining region of Antofagasta, in northern Chile, with capacity to process about 1.5 million metric tons a year.
Industry experts say a project of this size would likely require a $1.5 billion to $2 billion investment.
Glencore will now carry out a pre-feasibility study, with the companies aiming to finalize their agreement in the first half of next year. If the project moves forward, it would start construction in 2030 and begin operations between 2032 and 2033, the companies said.
Codelco added that it selected Glencore after a competitive bidding process. It agreed to offer Glencore up to 800,000 metric tons of concentrate annually for at least a decade as part of the deal.
Chile accounts for just 6% of global smelting capacity, and sends much of its copper for processing to China, which holds half the world's copper smelting capacity.
With China's highly efficient smelters competing for limited concentrate, treatment charges - the fees paid by miners to convert concentrate into metal - have fallen below zero and forced some overseas smelters out of business.
Chile is aiming to increase its own smelting capacity, including a $1.7 billion smelter modernization led by state-run mining company ENAMI.
Codelco Chairman Maximo Pacheco said the Glencore smelter's location in the Antofagasta region, where most of Chile's copper is mined, is intended to allow for logistical benefits, and would be built with strong operational and environmental standards.
He added that increasing Chile's smelting capacity was intended to benefit Codelco as well as help with "strengthening Chile's sovereignty and strategic security."
(Reporting by Daina Beth Solomon and Fabian Cambero; Editing by Kylie Madry, Brendan O'Boyle and Deepa Babington)
Copper concentrate is a product obtained from the processing of copper ore, containing a high percentage of copper along with other minerals. It is the primary raw material used in the smelting process to produce refined copper.
A smelter is an industrial facility that processes ore to extract metal, typically through heating and melting. It is crucial in the production of metals like copper, aluminum, and lead.
A pre-feasibility study is an assessment conducted to evaluate the viability of a project before full-scale development. It includes analysis of technical, economic, and environmental factors.
Smelting capacity refers to the maximum amount of ore that a smelter can process within a specific timeframe. It is a critical factor in determining the production capabilities of a smelting operation.
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