[miningmx.com] — TWO months of secretive talks between Chile’s state copper giant Codelco and miner Anglo American failed to resolve a stake option dispute, so a legal battle is for now the only way forward, Codelco’s CEO told a
local paper’s Tuesday edition.
The mining titans have been embroiled in a bitter spat after Anglo pre-emptively sold 24.5 percent of its southern-central Chilean properties from under world top copper producer Codelco.
That stymied Codelco’s bid to exercise an option to buy up a 49% stake in the proprieties, setting the stage for an acrimonious legal battle.
“We were talking with Anglo until Jan. 31. I can’t reveal what we discussed, due to a confidentiality contract (for talks), which lasted for two months and expired,” CEO Diego Hernandez told daily La Tercera’s Tuesday edition.
“(The talks) haven’t been renewed and that demonstrates that positions are sufficiently divergent to mean the legal route is today the only one.”
Anglo argues it was entitled to sell a share in the assets to Japan’s Mitsubishi before Codelco’s window to exercise the option in January, while the state miner says Anglo violated the Chilean legal principle of good faith by selling the stake.
Anglo has refused to hand over any part of its flagship Sur properties to Codelco, which argues it has now exercised its option.
A local judge could request a process of conciliation in late March to push the sides towards an out-of-court agreement, Hernandez said, adding the process was a formality.
Both Anglo and Codelco have sued each other for violating the contract, in a legal battle that could drag on for up to five years.
