[miningmx.com] -- ANGLO American made public on Wednesday four
documents relating to the sale of shares in its Chilean subsidiary - Anglo American
Sur - to Japan’s Mitsubishi, as part of its dispute with Chile’s state-owned Codelco.
A ruling issued on Monday by a Santiago court - following a request by Codelco, the
world’s largest copper producer - forced the LSE and JSE-listed mining firm to hand
over the documents.
Under the deal, which was closed in November last year, the Japanese trading house
agreed to pay $5.39bn for a 24.5% stake in the Sur business, which includes Anglo’s
world-class Los Bronces mine. Anglo said the deal prevents Codelco from exercising
in full a historic option for 49% of the company.
Releasing the documents, Anglo denied that the contract contained any means to
revert the transfer of property.
between the two companies [is] under freely agreed terms and
conditions that are normal for international agreements of this sort,” Anglo said in a
statement from its Santiago offices.
“Neither of the parties has the right to undo or reverse all or any part of the
transaction,” Anglo said.
Speaking on Tuesday, Codelco CEO Diego Hernandez said his firm fears that the
Mitsubishi agreement amounts to a simulated sale; one that would protect Anglo
from having Codelco exercise its option, but without reducing its long-term
participation in the business.
Codelco had asked to see the documents ahead of a potential legal action to quash
the deal as fraudulent. With that strategy now unlikely to prosper, the focus will now
be on the two main legal fronts:
Codelco’s court bid to force Anglo to hand over the 49% of shares in Anglo American
Sur to which it says it has a right; and Anglo American’s bid to annul the entire
option on the
basis that Codelco attempted to exercise it ahead of the established