Codelco and Enami Explore Collaboration on Copper Smelting Expansion
Chile’s state-owned copper giants, Codelco and Enami, are in early discussions to consolidate their efforts to expand smelting capacity into a single project, according to sources familiar with the matter.
A newly formed working group is exploring options for cooperation between two initiatives: Enami’s project to revamp its closed Hernan Videla Lira smelter and Codelco’s proposal to build a new smelting facility.
The collaboration could range from aligning their projects to meet national processing needs to merging the two into a single venture.
Strengthening Chile’s smelting capacity is a key objective for President Gabriel Boric’s administration. A new-generation smelter would not only reduce environmental impacts but also minimize waste from exporting copper concentrates, which currently contain only about 30% metal.
Despite being the world’s largest copper producer, Chile has not built a new smelter in over three decades, and more than half of its copper is shipped in semi-processed form.
While building smelters may not be financially attractive due to oversupply from China and low processing fees, sustainability and geopolitical considerations are driving the initiative. Nations are seeking to bolster their roles in the battery supply chain in response to China’s dominance.
Discussions between Codelco and Enami follow Enami’s September sale of its stake in the Quebrada Blanca mine to Codelco. Both companies agreed to explore synergies in smelting and refining. Enami confirmed these discussions but emphasized that the two projects remain separate for now.
Enami’s Hernan Videla Lira plant was shut down in February due to financial losses. The company awaits regulatory approvals and funding for its upgrade project, with international companies showing interest in collaboration.
Codelco, on the other hand, is advancing plans for a greenfield smelting project and has received private-sector interest. Current considerations involve Codelco acting as an offtaker in a privately operated facility.
Codelco has also signed a collaboration agreement with Europe’s leading smelter, Aurubis, to explore opportunities in Chile. Environmental concerns have led Codelco to close one smelter and face stricter emissions regulations at another.
As discussions progress, a unified smelting initiative could strengthen Chile’s position in global copper processing while addressing sustainability and geopolitical priorities.
