Codelco has finalised its joint venture (JV) agreement with Pucobre (BCS:PUCOBRE) to develop the Tovaku Project in Chile’s Antofagasta Region, marking a key milestone in a partnership initiated in 2009.
Pucobre will hold a 60% interest in the JV company, with Codelco holding the remaining 40%. The partners will focus on accelerating Tovaku’s next development phase, including detailed engineering, environmental and sectoral permitting, and early works.
The companies aim to bring the project into production by 2030 through an investment of US$870 million ($1.21 billion).
Codelco Chairman Bernardo Fontaine says partnerships are an essential part of the company’s growth strategy.
“They allow us to accelerate value creation from our mining resources, incorporate the capabilities and expertise of good partners, and achieve efficient structures to add new production,” Fontaine says.
“Tovaku is a very good example of this: an initiative that mobilises investment and captures value for Codelco and for Chile.”
Under the JV, Codelco will contribute the project’s mining concessions, while Pucobre will provide the existing studies and finance the development and construction phases.
Tovaku is planned as an open-pit operation producing around 46,000 tonnes of copper cathodes. The project has reserves of 633 million tonnes (Mt) and a projected mine life of 21 years.
Pucobre is a Chilean copper mining company developing the El Espino and Tovaku mines.
Codelco is Chile’s state-owned copper producer.
Global copper supply challenges
Tovaku’s development comes as electricity demand rises, driven by power-grid upgrades and expansion, AI, automation, and other technologies that require growing volumes of copper.
As previously reported, copper prices climbed to a record in New York this week, reaching US$6.73 per pound, equivalent to around US$14,850 per tonne.
In London, the benchmark three-month copper contract added 0.4% to US$14,273 per tonne.
Sprott says global electricity demand is expected to increase by 157% by 2050, driven by growth in the middle class across the East, clean energy technologies, EV adoption, and AI data centres.
A Sprott presentation citing the International Energy Agency’s World Energy Outlook 2025 Net Zero Emissions scenario projects electricity demand from 31,229 terawatt-hours (TWh) in 2023 to 80,175TWh by 2050.
The presentation also projects global data centre electricity demand will increase 2.2-fold by 2030.
“As data centres’ AI capabilities grow, so does the need for copper-intensive electrical equipment. Cumulative new copper demand from AI data centres is projected at 5 million metric tonnes by 2030. On an annual basis, this is equivalent to 2.8% of 2030’s forecasted global demand.”
Sprott says global copper supply faces challenges from declining ore grades and copper reserves, as well as long lead times required to develop new mines. A new copper mine takes an average of around 17.5 years to progress from discovery to first production.
As copper projects become harder to find and take longer to develop, Sprott expects the supply-demand imbalance to widen.
Beyond the majors, a new wave of junior copper explorers is seeking to build future supply through discovery. These companies are advancing targeted drilling campaigns and early-stage projects across the Americas, Africa, and Australia, aiming to shorten the lead times that have historically constrained copper development.
Next-gen copper exploration
The role of juniors is becoming increasingly critical as ore grades decline and demand accelerates, positioning them at the front line of future copper supply growth.
Lincoln Minerals (ASX:LML) is focused on copper discovery, with drilling underway at the Minbrie Copper Project on South Australia’s Eyre Peninsula.
The company recently confirmed up-dip mineralisation continuity at the Eagle Ridge discovery, supporting plans for diamond drilling in the December quarter 2026.
Lincoln plans to test mineralisation further down dip and along strike.
Alma Metals (ASX:ALM) has reported its first assay results from three infill holes at the Briggs Copper Project in Queensland, which it says validate the current mineral resource estimate (MRE) block model.
The drill program is focused on upgrading the MRE and supporting a Prefeasibility Study (PFS) for Briggs. The project contains 2Mt of copper metal in indicated and inferred resources at a 0.15% copper cut-off grade.
In early July, Alma reported acquiring a fully equipped modular exploration camp, doubling its operating capability at the site as work ramps up.
Leviathan Metals (TSX-V:LVX) recently completed diamond drilling at the Central Project in Botswana’s Kalahari Copper Belt, reporting sulphides in most of the 14 holes drilled.
The work forms part of a planned 10,000m drilling campaign at Central this year. Leviathan is targeting sediment-hosted copper mineralisation comparable in style and scale to MMG’s (HKG:1208) nearby Khoemacau property.
The Tovaku JV marks a key step in Chile’s copper development and underscores the role of strategic partnerships and exploration in addressing the projected supply-demand gap.
With majors committing long-term capital to projects and juniors advancing discovery pipelines, the copper sector is positioning itself to meet growing demand from electrification, AI data centres, and clean energy technologies.
Write to Amy Rotman at Mining.com.au
Images: Codelco, Lincoln Minerals
