Introduction
Joint ventures (JVs) in mining are evolving from traditional investment vehicles into strategic governance tools that address regulatory, environmental, and social complexity. Globally, JVs account for over 40% of production among the ten largest mining operations[1], underscoring their central role in complex, large-scale projects.
In Chile, a top global copper producer and rising lithium powerhouse, this evolution is particularly evident. New JV structures increasingly involve state-owned enterprises, indigenous communities, and multinationals, creating hybrid models of governance designed to align profitability with long-term sustainability. This article analyzes three Chilean cases that reflect this trend:
(i) CODELCO and Anglo American;
(ii) Wealth Minerals and the Quechua Indigenous Community of Ollagüe; and
(iii) CODELCO and SQM.
Strategic Functions of Mining JVs in Chile
Traditionally, mining JVs enabled capital pooling, technology transfer, and risk-sharing. Today, their role extends to balancing ESG concerns, stakeholder inclusion, and regulatory demands. In Chile, JVs are being repurposed to address local governance challenges and respond to national resource strategies, particularly in the lithium sector.
The cases below illustrate this transformation:
(i) – CODELCO and Anglo American:
Operational Integration Without Asset Merger
Faced with declining ore grades and cost pressures, CODELCO[2] and Anglo American signed an MoU in 2025 to coordinate mining plans for Los Bronces and Andina. Although not a JV in formal terms, the agreement establishes a jointly owned Common Agent with a fiduciary mandate to oversee mine planning, infrastructure use, and cost-sharing.
This model preserves legal autonomy while centralizing operational efficiency, generating an estimated USD 5 billion in pre-tax value. It illustrates how hybrid governance can create public–private synergies without merging ownership, a valuable precedent in mature mining districts.
Legal and Governance Structure
The alliance maintains asset ownership boundaries while establishing a shared governance mechanism. The Common Agent coordinates core functions, including processing, infrastructure use, and environmental compliance. Revenues are split equally, but product marketing remains independent. This structure ensures strategic collaboration without triggering joint liability or regulatory consolidation.
Lessons Learned
The collaboration exemplifies how strategic partnerships, even between public and private actors traditionally seen as competitors, can unlock efficiencies and long-term value. It offers a replicable model for jurisdictions with fragmented ownership, rising costs, or environmental constraints.
(ii) – Wealth Minerals and QICO:
Indigenous Equity in Lithium Development
Wealth Minerals’ Kuska Project in the Salar de Ollagüe involves a JV with the Quechua Indigenous Community of Ollagüe (QICO). The structure grants QICO a 5% equity stake, anti-dilution protection, and a board seat. Wealth Minerals contributes mining rights, exploration data, and technical assessments.
This partnership is consistent with Chile’s National Lithium Strategy and international norms on indigenous participation (ILO 169, UNDRIP), integrating indigenous actors not merely as stakeholders but as equity partners with governance rights. The JV enhances social legitimacy and provides a replicable model for community-inclusive lithium extraction.
Legal and Governance Structure
The agreement secures collective rights over ancestral land and ensures direct representation. It includes information rights, fiduciary duties, internal dispute resolution, and adherence to free, prior, and informed consent standards. These features elevate the role of indigenous communities from consultation to co-ownership.
Lessons Learned
The JV demonstrates how community participation can serve as a governance asset, not just a social requirement. It promotes alignment between project goals and community interests, increasing the likelihood of long-term success and minimizing socio-environmental risks.
(iii) – CODELCO and SQM:
Strategic Control over Lithium in the Salar de Atacama
In line with Chile’s 2023 National Lithium Strategy, CODELCO2 and SQM signed an agreement for a JV that will control lithium production in the Salar de Atacama until 2060. CODELCO holds 50% plus one share, ensuring majority public control, while SQM contributes operational expertise and infrastructure.
Legally, the JV grants CODELCO board appointment rights and decision-making power over key issues. However, the agreement has faced criticism for insufficient transparency and limited indigenous consultation. Unlike the Wealth–QICO model, community participation is minimal, raising questions about long-term legitimacy.
Legal and Governance Structure
The agreement establishes public control through majority shareholding and strategic oversight. SQM’s continued involvement is subject to ESG obligations and performance metrics. While the model advances national ownership goals, it has drawn scrutiny over stakeholder exclusion and limited public accountability mechanisms.
Lessons Learned
The JV reflects an effort to expand state sovereignty without resorting to expropriation. However, its limited participatory framework contrasts with the inclusivity of other cases. The design underscores the importance of aligning governance innovation with transparency, legitimacy, and civil society expectations.
Comparative Insights and Conclusions
These cases reveal a broader shift in mining JV design—from contract-based cooperation toward institutionalized governance frameworks capable of balancing economic, environmental, and social imperatives.
- The CODELCO–Anglo American alliance illustrates how centralized planning and shared infrastructure can deliver value without merging ownership structures.
- The Wealth–QICO JV exemplifies inclusive governance through community shareholding, promoting legitimacy and alignment with national and international norms.
- The CODELCO–SQM agreement showcases a model for strategic resource control, while also highlighting the risks of limited transparency and stakeholder engagement.
Joint ventures, when treated as strategic governance tools, can foster collaboration across sectors and stakeholders. Their success will depend on careful legal structuring, meaningful participation, and the ability to adapt to evolving regulatory and societal expectations.
If you have any questions about this topic, please reach out to the authors; Jose Ignacio Moran and Jaime Cruzat
[1] Harvard Business Review, Joint Ventures, Bamford et al.
https://hbr.org/2022/06/ensure-that-your-joint-ventures-meet-your-esg-goals
[2] The National Copper Corporation of Chile; a Chilean state-owned mining company.
