SANTIAGO (Reuters) -Chilean copper producer Codelco and global miner Rio Tinto will jointly aim to create a copper "mining district" around their shared Nuevo Cobre project in the Atacama region of northern Chile, Codelco said on Monday.

The new agreement establishes a joint committee and shared funding for preliminary studies for an initial 12-month period, with the possibility to be extended, Codelco said in a statement.

It comes after the two companies in 2023 established the Nuevo Cobre project to carry out exploration in the area, a joint venture in which Codelco owns about 43%, and Rio Tinto about 58%.

Codelco, the world's biggest copper producer, noted that the Nuevo Cobre project sits alongside its own San Antonio property.

"The geological potential of the wider Atacama region and proximity of both projects present an opportunity to create a mining district," Codelco said.

It added that the two companies will aim to "maximize the value" of the area, including through infrastructure.

"It will make the most of our complementary experience and capabilities to drive exploration and development in a way that benefits the Atacama region," Rio Tinto CEO Jakob Stausholm said in the Codelco statement.