Diversified miner Rio Tinto has completed the acquisition of Pan American Silver’s stake in Agua de la Falda and forged a joint venture (JV) with Corporación Nacional del Cobre de Chile (Codelco) to explore and potentially develop assets in Chile’s prospective Atacama region. 

The acquisition, initially announced in August,  encompasses a 57.74% operating stake in Agua de la Falda for $45-million and the grant of net smelter return royalties.

With the acquisition, Rio Tinto and Coldeco are now primed to start their joint exploration project at the Agua de la Falda site.

Rio Tinto chairperson Jakob Stausholm and Codelco chairperson Maximo Pacheco met in Tokyo, Japan, to formalise their new JV, which bears the name ‘Nuevo Cobre’ or ‘New Copper’ to symbolise their fresh approach to copper exploration in the region.

“Chile is one of the most important sources of the copper and other critical minerals the world needs to deliver the energy transition and achieve net zero. With this partnership, we are bringing together our complementary experience and capabilities. Codelco’s local knowledge and expertise is second to none and we have a global track record in exploration. I am very much looking forward to getting our work on the ground started,” said Stausholm.

Codelco’s Pacheco echoed the sentiment. “This is an unbeatable opportunity for Codelco and Rio Tinto to join our knowledge, experience, strengths and capabilities to accelerate exploration and development of these assets to contribute the copper that the world needs for its energy transition.”

While Agua de la Falda has seen previous exploration activities for precious metals, modern exploration for copper has been minimal.

Rio Tinto Exploration’s analysis indicates it is prospective for new copper discoveries, which will now be the JV’s central focus. 

The collaboration builds on a prior collaboration agreement between the two companies, signed in October 2022, aimed at fostering innovations and technology to improve safety; productivity and environmental, social and governance outcomes in underground mining.