Chile’s state-owned copper producer Codelco and technology firm Microsoft have formalized a collaboration to explore the application of artificial intelligence and related digital technologies across mining operations, Codelco announced on Thursday.
The companies signed a memorandum of understanding that will run initially for 18 months. Under the terms of the agreement, Codelco and Microsoft will implement a joint governance structure to oversee strategic direction and operational follow-up throughout the evaluation period.
The scope of the partnership covers several technical and operational lines of work. These include intensive use of operational data, deploying AI to support decision-making, testing autonomous operational capabilities, automating critical business processes and reinforcing cybersecurity measures. The memorandum also foresees both partners participating in early-stage testing of new solutions and exchanging international experience as part of the evaluation.
In commenting on the deal, Codelco chief executive Ruben Alvarado said: "Working with a world-class technological leader like Microsoft consolidates our leadership in the future of mining. Faced with an accelerated digital transformation, we have to process and consider large volumes of operational data."
Tito Arciniega, president of Microsoft Latin America, framed the alliance as an opportunity for the mining sector and Chilean market, saying: "This alliance with Codelco reflects the potential that artificial intelligence represents to advance development in the mining sector and Chilean market, facilitating safer, more efficient and sustainable operations with a focus on people, productivity and long-term value for the company and country."
The memorandum positions the two organizations to jointly pilot technologies and evaluate their operational fit. Early testing and the exchange of international experience are explicit elements of the partnership, indicating that deployments would follow further validation and assessment under the governance structure laid out in the 18-month agreement.
Separately, an investment note included with the original report referenced a service called ProPicks AI that evaluates companies including Microsoft using more than 100 financial metrics and highlights historical examples of past winners. The note cited that ProPicks AI has previously identified stocks such as Super Micro Computer (+185%) and AppLovin (+157%), and invited investors to check whether Microsoft is currently featured in its strategies.
The memorandum does not provide additional operational timelines, implementation milestones or financial commitments beyond the initial 18-month evaluation period and the joint governance approach. Further details on specific pilots, sites or technology vendors to be used were not disclosed.