Government approves Codelco and BHP alliance for 52 mining concessions

The President of the Republic approved, by means of Decree No. 831 of the Ministry of Finance, the terms and conditions of the acts and contracts between Codelco-Chile and BHP Exploration Chile SpA regarding 52 mining claims owned by the state-owned company. The regulation was published in the Official Gazette No. 44,558, on Friday, September 25, 2026, Section I, pages 1 to 6, with the official reference CVE 2872443. The decree, dated August 8, 2025, bears the signatures of President Gabriel Boric Font, Minister of Finance Mario Marcel Cullell, and Minister of Mining Aurora Williams Baussa.

The legal framework of the operation

The authorization is granted by virtue of Article 4 of Law No. 19,137, which regulates the mining claims of Codelco-Chile that are not part of deposits currently under exploitation. This regulation requires prior agreement from the state-owned company’s board of directors and, prior to signing, a decree from the Ministry of Finance also signed by the Ministry of Mining.

The file is supported by a chain of previous acts:

• Memorandum of understanding signed by the parties on September 11, 2024.
• Reasoned Agreement No. 43/2024, dated October 30, 2024, and Reasoned Agreement No. 25/2025, dated May 7, 2025, from the board of Codelco-Chile.
• Reserved Agreement No. 26/2025, dated May 7, 2025, which established the terms and conditions of the business.
• Framework exploration agreement signed on May 12, 2025.
• Technical report from Sernageomin (ordinary letter No. 1,295, dated May 22, 2025) and a favorable report from the Cochilco Council (ordinary session No. 4, dated May 30, 2025, letter No. 394).

The 52 claims and the Anillo Prospect

The Mining Properties comprise the 52 exploitation concessions individualized in the contract and 12 exploration concessions associated with the Anillo Prospect, located in the Antofagasta Region. According to the decree, each claim is registered in the name of Codelco-Chile in the Property Registry of the corresponding Mining Conservator and is up to date in the payment of its exploitation mining patents.

Sernageomin certified that the claims are not part of deposits currently under exploitation nor part of the expansion of a mining project of the state-owned company. The business will be materialized through the Exploration Contract and Promise of Company Formation, the Shareholders’ Agreement, the Bylaws, the Modification and Renegotiation of Bylaws, and the Share Subscription and Payment Contract.

Investments, percentages, and control

The scheme staggers the entry of BHP into the capital of the promised company, which will be a joint-stock company domiciled in Santiago with a board of five members once the private partner is incorporated:

• Initial Investment of US$40 million: US$4 million mandatory over two years (Minimum Investment) and US$36 million voluntary (Voluntary Investment). This grants BHP 51% and leaves Codelco-Chile with 49%.
• Subsequent Investment of US$10 million, voluntary and within two years from the incorporation of the company: adds 14% and brings BHP to 65%, with Codelco-Chile at 35%.
• EPF Investment of up to an additional US$50 million, borne by BHP, until the completion of the pre-feasibility study.
• Minimum Annual Exploration and Development Investment Obligation starting from the third year of the company’s incorporation.
• Maximum term of 25 years to begin project construction.

BHP will act as operator and receive a fee of 8% of direct exploration costs. Codelco-Chile retains preferences for its Series A Preferred Shares: free carry, designation of directors according to its participation, anti-dilution clauses, and veto rights in meetings and the board on matters such as the disposal of mining properties.

The scope of the Comptroller’s Office

The Comptroller General of the Republic processed the decree with scopes through official letter No. OF160952/2026, dated August 24, 2026, signed by Comptroller Dorothy Pérez Gutiérrez. The control body objected to the wording of recitals 12 and 13, which attributed the legality qualification of the act to the issuing service itself, and noted unused blank spaces in recitals 7.5 and 10.

The decree closes by stating that any incorporation or contribution of another mining property of Codelco-Chile to these acts and contracts must comply with the provisions and approvals of Law No. 19.137.

The operation commits strategic copper assets in one of the country’s most relevant mining regions and opens the door for a global private entity to control up to 65% of a company that will exploit state properties. For readers, the key point is that the state entity maintains ownership of the concessions until their contribution and retains veto rights, but reduces its participation to a minimum of 35% if BHP executes all planned investments.

Source: Official Gazette of the Republic of Chile, No. 44,558, Friday, September 25, 2026, Section I, pp. 1-6 (official reference: CVE 2872443).