Chilean state miner Codelco is close to signing an agreement with local miner Pucobre on the Tovaku copper project in northern Chile, Chairman Bernardo Fontaine said in a television interview on Sunday, as the company’s new leadership plans to rely more heavily on private-sector partnerships to drive growth.

Fontaine said alliances with private companies were essential for Codelco’s expansion because they bring capital, technology and shared risk, as one of the world’s largest copper producers tries to improve performance while limiting additional borrowing.

“We are close to signing another agreement with local miner Pucobre on a project called Tovaku,” Fontaine said in an interview with Canal 13’s Mesa Central.

The Pucobre deal would pave the way for a joint venture for Tovaku, an oxide copper project in Chile’s Antofagasta region that is under environmental review. Codelco and Pucobre first signed an exploration agreement for the property in 2009.

Pucobre holds an option to acquire 60% of the mining rights that make up Tovaku, with Codelco retaining 40% if the project advances and required investment, technical and environmental conditions are met.

Tovaku carries an estimated investment of $870 million and is expected to produce about 46,000 metric tons of copper cathodes a year. Industry estimates point to startup in 2035.

Fontaine said Codelco’s investment pipeline totals about $34 billion and cannot be financed with the company’s own resources, while additional debt is not the preferred solution. He said the company was also reviewing whether to sell some stakes it holds in private companies and reinvest the proceeds directly into Codelco, with that analysis expected by November.

He added that Codelco’s current production trend makes it difficult to achieve its 2026 target of 1.34 million metric tons, though he said the target had not been abandoned.

(Reporting by Kylie Madry, Editing by Iñigo Alexander)