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    Codelco–BHP $40m Anillo copper hunt: exploration and risk notes for engineers

    October 27, 2026|

    Reviewed by Joe Ashwell

    Codelco–BHP $40m Anillo copper hunt: exploration and risk notes for engineers

    First reported on MINING.com

    30 Second Briefing

    Codelco and BHP have signed a new exploration agreement for the early-stage Anillo copper project in Chile’s Antofagasta region, with BHP committing up to $40 million for work programmes. Funding will cover reconnaissance campaigns, geophysical surveys, geological studies and drilling to test targets across Codelco’s wider 2.3‑million‑hectare portfolio. The deal, formalised on 21 October during LME Week, is intended to deepen geological knowledge and decide whether Anillo advances to more intensive exploration and potential mine development.

    Technical Brief

    • Work scope explicitly includes early-stage drilling programmes following geophysical and reconnaissance target definition.
    • Geophysical surveys are planned as a precursor to drilling, indicating a phased, risk‑gated exploration workflow.
    • Geological studies will focus on deepening structural and lithological understanding before any resource‑style drilling escalation.
    • Codelco emphasises safeguarding Chile’s national interests while leveraging BHP’s capital, technology and project management capability.

    Our Take

    Codelco’s $40M copper exploration with BHP in northern Chile comes on top of sizeable long-term financing support flagged in our database, including World Bank Group-backed guarantees for Codelco’s broader copper portfolio, signalling that lenders remain comfortable with Chilean copper risk despite cost and permitting headwinds.

    The Antofagasta region focus at Anillo aligns with other copper pieces in our coverage where majors are prioritising brownfields or near-district plays over frontier jurisdictions, which typically shortens lead times if discoveries can be tied into existing northern Chile infrastructure.

    With Codelco simultaneously piloting advanced underground automation at El Teniente and pushing new copper exploration, our database suggests the company is trying to offset declining grades at mature assets by pairing technology upgrades with fresh resource options rather than relying solely on life-extension projects.

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    Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.

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