SANTIAGO (Reuters) - Chilean state-run copper miner Codelco said on Monday that it had reached an agreement with BHP for the multinational firm to explore the "Anillo" mining property.

BHP will spend up to $40 million to explore the area, Codelco said in a statement. BHP could form a tie-up with Codelco to mine there if there is evidence of a favorable business case, Codelco added.