[miningmx.com] — ANGLO American on Thursday urged Chilean copper
giant Codelco to seek a negotiated deal to settle the dispute over Anglo American
Sur, labelling a criminal probe into the matter as “completely inappropriate’.
“We have stated very clearly and consistently that we are open to working with
Codelco to agree on a commercial solution, and we urge Codelco and its board to act
constructively to that end,’ said CEO Cynthia Carroll in a statement.
The renewed offer for talks comes after Chilean prosecutors opened a criminal
investigation earlier this week into Anglo American’s sale of a 24.5% stake in Sur to
Japan’s Mitsubishi last November.
According to an accusation filed by Raimundo Espinoza, head of Codelco’s workers
union and a board director, the sale is a simulated contract aimed at preventing the
state-owned mining firm from exercising an option to buy 49% of the shares in Sur.
Anglo dismissed the probe as lacking any justification, citing documents it was forced
to make public by a Chilean court earlier this month.
“It is clear from those agreements that this was an entirely normal and wholly
completed transaction between two multinational companies. Any allegation to the
contrary, or to suggest that Anglo American or any of its employees have acted
improperly, is totally unfounded,’ the company said.
Carroll criticised the probe as inappropriate given the commercial nature of the
dispute between the two firms, and said it formed part of a campaign of intimidation.
The renewed bid for talks comes despite the tough stance that the mining company
has assumed in court. Last month, the company filed a suit against Codelco, which
seeks to annul the entire option and push for damages under the justification that
the state-owned mining firm had attempted to exercise the historic option ahead of
the established January window.
If successful, Anglo would not owe the Chileans anything, but a negotiated deal
could cost the company several billion dollars in compensation.
In contrast, Codelco executives and Chilean authorities have dismissed recent
negotiations, with the company racking up a series of advances in a legal bid to
enforce the option. On Thursday, a Chilean court upheld a freeze on the disputed
shares.
Combined with the sale to Mitsubishi, Codelco’s top lawyer Pedro Pablo Gutierrez
warned Anglo that it could face the prospect of owning a minority stake in what had
been one of its most valuable assets.
Still, a court case is expected to last a minimum of three years and would cast a pall
over what should be golden years for Chile’s mining industry.
After an intense opening round, Chilean court proceedings are likely to deccelerate
as the country winds down for the February summer break. In the latest move, a
Santiago court called for a translation of the Mitsubishi contract submitted by Anglo
American, stating that the Spanish version will not be ready before the middle of
March.
