Sept 16 (Reuters) - Anglo American and Chilean

state-run copper giant Codelco said on Tuesday

finalised an agreement to jointly operate their neighbouring

Chilean copper mines, aiming to unlock at least $5 billion in

value from their key assets.

The mining plan relates to Codelco's Andina mine and Anglo

American's Los Bronces mine in central Chile outside the capital

of Santiago, building on a memorandum of understanding signed by

the two groups in February.

"We can now maximise the potential of the Andina-Los Bronces

mining district without major investments and with significantly

greater returns," said Codelco Chairman Máximo Pacheco.

Codelco and Anglo plan to unlock an additional 2.7 million

tonnes of copper production over a 21-year period, pending the

receipt of necessary permits, which are anticipated by 2030.

A new jointly owned operating company will oversee

execution of the plan, the companies said, while both Codelco

and Anglo will keep ownership of their respective assets.

The agreement also includes sustainability principles

and flexibility to adhere to the companies' environmental

commitments.

Located in the Andes, the expansion has been fought by

environmental groups due to its potential impact on glaciers and

water availability in Chile.

Anglo American earlier this month had

announced

a merger with Canadian miner Teck Resources ( TECK ), set to be the

biggest mining deal in over ten years.