Anglo American and Codelco Agree to New Talks
SANTIAGO – Mining giants Anglo American and state owned Codelco have requested to suspend legal proceedings, potentially avoiding what could be a 4 year court battle and ending the feud that has already lasted months.
According to a statement issued by Anglo American, both companies requested the suspension of legal proceedings for a month, until June 22, in order to reach a resolution and overcome the legal dispute.
Cynthia Carroll, Chief Executive of Anglo American, said: “We welcome this opportunity to re-engage with Codelco and explore whether a solution may be achievable. From the outset, we have been consistently in favour of discussing a commercial solution that takes into account the interests of both parties.”
Codelco Chief Executive Diego Hernández said in a statement: “We will discuss with Anglo American to explore ways of overcoming this controversy. ” President of the Board of Directors Gerardo Jofré also added, “Codelco has always been open to reaching an agreement if it is appropriate for the interests of the companyand its owners, which are all Chileans. This always has been our motivation as the Board in all the decisions we make.
The companies have been in disagreement since November 2011 over Anglo American selling 24.5% of Anglo American Sur’s stakes to Japanese company Mitsubishi. According to Codelco, this violated a contract signed in 2002 which allowed them to buy a 49% share of the company in a window that opened in January. Anglo American Sur is valuable since it owns the Los Bronces mine in the northern Chile, which is on its way to becoming the 5th largest copper mine in the world, and two of the world’s best underdeveloped copper deposits.
Last month the Chilean copper mining company had a bid to freeze Anglo’s assets gained from the deal with Mitsubishi rejected by the 14th Civil Court of Santiago.