Glencore(US:GLNCY) Yahoo Finance·2025-12-04 09:48Core Viewpoint - Codelco and Glencore have signed a memorandum of understanding to develop a copper smelter in Antofagasta, Chile, aiming to enhance local copper processing capacity and reduce reliance on foreign smelting [1][4]. Group 1: Agreement Details - Codelco will supply up to 800,000 tonnes per annum of copper concentrate to Glencore for a minimum of ten years, with a potential ten-year extension [2]. - The planned smelter will have a processing capacity of approximately 1.5 million tonnes per annum of concentrate [2][3]. - The investment required for the project is estimated between $1.5 billion and $2 billion [3]. Group 2: Project Timeline and Feasibility - Glencore will conduct a pre-feasibility study, with the aim to finalize the agreement in the first half of next year [3]. - Engineering studies for feasibility and permitting are expected to be completed by 2027, with construction anticipated to start in 2030 and operations beginning between 2032 and 2033 [3]. Group 3: Industry Context - Chile currently holds only 6% of global copper smelting capacity, with a significant portion of its copper being processed in China, which controls half of the world's smelting capacity [4]. - The Chilean government is working to expand local smelting infrastructure, including a $1.7 billion modernization project led by ENAMI [5]. - The Codelco-Glencore agreement aligns with national objectives to increase domestic smelting capacity [5]. Group 4: Glencore's Broader Strategy - Glencore plans to restart operations at its Alumbrera copper mine in Argentina by the end of next year, with production expected to commence by the first half of 2028 [5]. - Once operational, the Alumbrera mine is projected to produce approximately 75,000 tonnes of copper, 317,000 ounces of gold, and 1,000 tonnes of molybdenum over four years [6]. - Glencore aims to expand its annual copper production to around 1.6 million tonnes by 2035, reversing a multi-year decline in output [6].