In a deal estimated to be worth $500 million, Chile's largest copper producer, Codelco, is thinking of acquiring a 10% share of Teck's Quebrada Blanca copper mine, which is presently owned by state mining company Enami.

According to a Tuesday article in the local newspaper La Tercera, the proposed acquisition will be strategically advantageous to both Codelco and Enami. Codelco would gain control over a large, long-lived copper asset, while Enami would strengthen its balance sheet and be able to partially fund a new smelter.

Although Enami only owns a small portion of Quebrada Blanca (QB), its non-dilutable position gives it an advantage over other owners. This implies that the state-owned miner will continue to own the majority stake even if more shareholders subscribe for capital increases. The series B shares that make up this holding also grant Enami the right to a preferred dividend. Bonus: Financing capital expenditures is not necessary.

Enami, a national organization that represents small- and medium-sized mining projects, informed La Tercera that they are unable to share information on this subject due to a confidentiality restriction.

The state-owned mining corporation lost $200 million in 2023—more than twice as much as it lost $78 million in 2022. According to its 2023 financial statement, the miner valued its stake in QB at just over $323 million.

Enami is also having financial issues because its Paipote smelter in the northern state of Atacama is still not operating because of unfinished upgrades.