Anglo American, Codelco face off in court

Miningmx | Thu, 29 Dec 2011 10:54

[miningmx.com] -- REPRESENTATIVES for Chilean state copper-mining company Codelco and global miner Anglo American have faced each other in court as Anglo American sought to have an injunction against it lifted, according to news wire Dow Jones.

The two companies are at loggerheads over an option for a stake in Anglo American's Sur mining complex in Chile.

In his arguments before an appeals court in Santiago, Codelco legal counsel Pedro Pablo Gutierrez told a panel of three judges that the state mining company sought the injunction to bar Anglo American from selling any further Sur stake.

"If the injunction is lifted, the contract that allows Codelco an option over Sur wouldn't be worth the paper it's written on," Gutierrez told the court, Dow Jones reported on Wednesday.

Jose Maria Eyzaguirre, the lead counsel for Anglo American began his arguments by saying the injunction should be declared "inadmissible" by the court.

Eyzaguirre in court reiterated Anglo American's view that following the $5.39bn sale to Japan'sMitsubishi Corp. of a 24.5% stake in Sur, Codelco can only exercise an option for up to 24.5% of Sur.

Codelco counsel Gutierrez for his part maintained that Codelco can still acquire 49% of the Sur complex when its window of opportunity opens on Jan. 1.

The Sur complex at the heart of the courtroom battle houses the El Soldado copper mine, the Chagres smelter and the recently expanded Los Bronces mine.

Once Los Bronces' output ramps up to its fully expanded capacity, it will be one of the world's largest copper mines. It shares the same copper-rich vein as Codelco's Andina division high in the Andes mountains.

When Anglo American acquired Sur in 2002 from ExxonMobil, it also acquired the option Chilean state mining company Enami had over a stake in the mine. Codelco later bought the option from Enami for $175 million.

Gutierrez, meanwhile, told Chile’s La Tercera newspaper he expected the court to come to a decision in January.