Building a new copper mine isn't easy.

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It can take well over a decade to secure permits, build the project, and bring it into production. Costs have climbed sharply, and environmental reviews have become increasingly complex.

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That's why Anglo American (OTCBB: AAUKF) and Chilean copper giant Codelco have agreed to combine the mine plans for Anglo's Los Bronces operation and Codelco's neighboring Andina mine. 

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Side by side

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Instead of developing a new project, they'll coordinate production from deposits that already sit side by side.

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The result could be an additional 2.7 million metric tons of copper over the next 21 years without building another mine. That's roughly 120,000 metric tons of additional copper production each year, beginning around 2030, assuming the project receives regulatory approval.

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Anglo estimates the agreement could create at least $5 billion in pre-tax value, with both companies sharing the benefits equally.

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The project still has hurdles. Environmental approvals are required before mining can begin under the new plan, and those reviews could take years.
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Still, the agreement reflects a broader shift happening across the mining industry.

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For years, growth meant finding the next major discovery. Today, it increasingly means producing more copper from assets companies already own.

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As demand for the metal continues to grow, that may prove to be one of the industry's most valuable resources.

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