Chile’s state-owned mining company Codelco has signed an agreement with collective management system Valora Más to strengthen the collection, recycling and valorization of end-of-life tires generated across its mining operations. The partnership covers category A tires with rim diameters below 57 inches, including tires from light vehicles and equipment supporting mining activities, and operates within Chile’s Extended Producer Responsibility framework under Law No. 20.920. The agreement gives Codelco two routes for managing these tires: transferring them directly to Valora Más for recycling at no cost, or documenting tires recycled through Codelco and authorized waste managers and assigning those verified tonnes to Valora Más in return for an agreed payment per kilogram. At Codelco’s El Teniente Division, more than 1,500 tonnes of category A waste tires have already been recorded as properly recovered under the new reporting system, demonstrating how traceability and producer responsibility mechanisms can create both environmental and economic value from tire recycling in the mining sector.

Agreement covers category A end-of-life tires

The partnership focuses on category A end-of-life tires, defined under the relevant Chilean framework as tires with rims smaller than 57 inches. Within Codelco’s operations, these mainly originate from light vehicles and equipment used to support mining activities.

The initiative forms part of Codelco’s circular economy strategy and is intended to improve the management of tire waste while increasing the proportion of discarded materials returned to productive use as secondary raw materials.

Partnership supports compliance with Chile’s REP law

The agreement was developed through Codelco’s Climate Action Management team and is linked to Chile’s Law No. 20.920 on Extended Producer Responsibility, commonly referred to as the REP Law. The legislation establishes environmental management obligations for priority products, including tires.

Under the arrangement, Codelco assigns corresponding quotas so that qualifying end-of-life tires collected and recovered directly by the mining company or through authorized waste managers can be counted toward the environmental targets managed by Valora Más.

Codelco gains two tire recycling options

The agreement establishes two management pathways for Codelco. In the first, the company can transfer its discarded category A tires directly to Valora Más, which assumes responsibility for arranging their recycling without charging Codelco for the service.

The second route allows Codelco to continue arranging tire recycling independently or through authorized operators and subsequently transfer the documented recycling tonnes to Valora Más. In these cases, Codelco can receive an agreed payment for each kilogram managed, provided that the recycling process is supported by the required traceability and documentation.

El Teniente records more than 1,500 tonnes

Codelco Climate Action Manager Pablo Contreras said the model is already producing measurable results at the company’s operations. At the El Teniente Division, more than 1,500 tonnes of category A end-of-life tires have been properly recovered and reported with supporting documentation under the new framework.

The documented volumes also create the possibility of generating financial returns from recycling activity that Codelco was already carrying out. This adds an economic incentive to the environmental benefits of responsible waste tire management.

Traceability becomes central to tire recovery

A key element of the partnership is the requirement that recycled tire volumes be supported by appropriate documentation and traceability. Only verified material can be assigned to Valora Más and used toward REP compliance targets.

For tire recycling systems, this approach helps establish where end-of-life tires originate, how they are transported and whether they ultimately reach authorized recycling and recovery facilities. It also provides a mechanism for distinguishing documented material recovery from informal or unverified disposal routes.

Valora Más sees potential across Chilean mining

Valora Más General Manager Nathalia Silva described the agreement as an example of how circular economy mechanisms can be applied to strategically important sectors in Chile. She highlighted the flexibility created by offering both no-cost tire recycling and the possibility of monetizing already recovered volumes.

Silva said the experience at El Teniente demonstrates the potential for tire recycling within Chile’s large-scale mining industry and expressed the expectation that other companies could adopt similar mechanisms to transform waste tires into secondary raw materials for the domestic economy.

El Teniente links project to 2030 environmental objectives

Eric San Martín, head of El Teniente’s Circular Economy Unit, said the initiative contributes to the division’s environmental objectives for 2030. The project provides a defined mechanism for complying with regulatory requirements while increasing the value recovered from materials that would otherwise remain environmental liabilities.

The approach illustrates how circular economy strategies can extend beyond waste disposal by connecting regulatory compliance, traceability and recycling markets with measurable economic benefits.

Mining sector creates major opportunity for tire circularity

Mining operations generate significant volumes of end-of-life tires from light vehicles, support equipment and heavy machinery. Developing reliable collection and recovery systems is therefore an important component of reducing mining waste and improving resource efficiency.

Codelco said the Valora Más arrangement will extend across its different operations. By combining regulated tire collection, documented recycling and financial incentives for recovered material, the company aims to strengthen circular waste management while supporting Chile’s wider market for recycled tire materials.

Partnership aims to turn tire waste into secondary raw materials

The Codelco-Valora Más model demonstrates how Extended Producer Responsibility systems can create incentives for companies to document and increase tire recycling rather than treat end-of-life tires solely as a disposal cost. The system allows verified recycling volumes to contribute directly to regulatory targets while giving recovered materials another pathway back into the economy.

For Chile’s tire recycling industry, wider adoption of similar arrangements could improve feedstock traceability, strengthen demand for authorized recycling services and encourage further development of markets for recycled rubber and other tire-derived materials.

Original announcement by Codelco.