Codelco and BHP Sign Anillo Exploration Agreement

Codelco and BHP have signed an exploration agreement for Anillo in northern Chile, according to Codelco's October 26, 2026 announcement. BHP could invest up to US$40 million in reconnaissance, geophysical surveys, geological studies and drilling to assess the property's potential. For those of us following BHP's copper pipeline, the signed agreement opens another opportunity to search for resources, with the geology still to determine whether development is justified.

The spending ceiling itself is familiar. Codelco's May 12, 2025 announcement already set out that amount, with signing conditional on statutory requirements. Its latest release says the required authorizations were completed before the contract was signed, allowing exploration to proceed. We would therefore assess this as progress from conditional terms to an executed agreement, without counting the same potential spending twice. Our review covers the company announcements; we have not read the executed contract or the underlying authorization documents.

What does BHP get for the money? Codelco describes Anillo as an early-stage exploration property covering 24,000 hectares, previously explored by Codelco and others. Its May announcement said BHP would explore at its own expense, with a future association dependent on establishing a sustainable business case and obtaining the corresponding regulatory approvals. The October announcement supplies no ownership percentage, minimum spending schedule or production date. Without those terms, you cannot calculate BHP's eventual share of a discovery or treat the full spending ceiling as an unconditional commitment.

BHP already has more advanced Chilean growth work competing for capital. In its October 20 operational review, it reported US$800 million of approved pre-commitment funding for the Escondida New Concentrator, on a whole-project basis. That money supports further engineering, permitting and execution readiness. Anillo adds an earlier exploration opportunity alongside that program. The distinction helps us judge delivery: progress at Anillo will initially be measured in geological information and drilling results, while the concentrator work concerns advancing a defined project toward execution.

For you as a BHP holder, successful exploration could eventually give the company another source of copper growth in Chile. But the money first buys evidence about what is underground, and the work may fail to establish an economic project. Codelco's October release says BHP's technical, operating and infrastructure capabilities could support future development if the potential is confirmed. It identifies no specific processing arrangement or approved mine. We would give the signed access agreement credit for advancing the search while waiting for results and economic rights before assigning it a production value.

By October 31, our review date rather than a company deadline, we will watch for a work timetable, spending obligations and ownership terms from either company. Codelco's announcement gives no date for first drilling results.

Seek the truth and be prepared,

Equedia News

Sources

• Codelco, Anillo exploration agreement signed, October 26, 2026
• Codelco, Anillo exploration terms and conditions, May 12, 2025
• BHP, Operational review for the quarter ended September 30, released October 20, 2026

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