Codelco is negotiating a copper venture with India's Hindustan Copper Ltd. as the Chilean state-owned miner turns to foreign partnerships to develop unexploited deposits, according to people familiar with the matter.
The deal under discussion is for a joint venture in which Codelco would put up one of its undeveloped deposits in Chile, with HCL taking on capital commitments, said the people, who asked not to be identified discussing ongoing confidential talks. Investments would exceed $1 billion, they said.
Codelco “maintains multiple conversations and negotiations” on potential partnerships to develop a portfolio of exploration projects, the Santiago-based company responded when asked about talks with HCL. HCL didn't respond to a request for comment.
Codelco, one of the most indebted global miners, is teaming up with foreign firms — including BHP Group and Rio Tinto Group — in a bid to drill deposits without adding to its already heavy investment burden as new projects get trickier and pricier to develop. At the same time, Chile's new government under President Jose Antonio Kast is cutting red-tape and easing regulation in a bid to unlock investments in mining.
Codelco is turning more to India as a buyer of its copper. Indian companies, meanwhile, are looking to Chile, which boasts the world's biggest copper reserves, to secure supply, integrate upstream and stay competitive in a tightening global market.
The prospective Codelco-HCL deal comes a year after both state-owned companies signed a memorandum of understanding during former Chilean President Gabriel Boric's visit to India. The MoU focuses on exchanging information to facilitate exploration, mining, and mineral processing, along with employee training and capacity building.
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