[miningmx.com] — ANGLO American has sued Chile’s Codelco for breach of contract in a dispute over the diversified miner’s south Chilean assets, arguing an agreement that would have seen the state producer buy a stake is no longer valid.
Anglo said it was still open to reaching an agreement with Codelco, but said the Chilean miner had breached the original contract by attempting to prematurely exercise the option to buy a stake and by subsequently blocking Anglo’s moves. Anglo American said it was simply taking “all reasonable steps to protect its rights”.
The two sides have been at odds since Codelco, the world’s largest copper producer, announced it intended to exercise its option to buy up to 49% of Anglo’s south Chilean assets. Weeks later, Anglo surprised Codelco and investors by announcing it had sold a 24.5% stake in the assets to Japan’s Mitsubishi, reducing the shares available for Codelco.
Anglo, which is also seeking damages, said on Thursday it had filed a writ with Santiago’s Court of Appeals, citing Codelco’s premature attempt to exercise the option and subsequent actions aimed at preventing Anglo from exercising what it says is its right to sell to another buyer.
It said the legal action sought to “render ineffective the potential future exercise of the option by Codelco”.
“We continue to be open to reaching a mutually agreeable commercial solution with Codelco for the benefit of all our shareholders and ultimately for Chile,” Anglo Chief Executive Cynthia Carroll said in a statement.
“While both Anglo American and Codelco have taken legal measures, this does not detract from our willingness to reach agreement with Codelco,” she added.
Codelco declined to comment.
