Anglo-American readies for copper war in Chile

A bitter legal battle appears to be brewing between FTSE 100 mining firm Anglo American and the Chilean, state-owned copper miner Codelco.

Anglo says it has received a letter from Codelco seeking to exercise an option to buy a 49% stake in Anglo American Sur, a huge copper mining plant in Chile that Anglo has spent billions upgrading.

The dispute dates back to November when Codelco first announced its intention to exercise its option, a move which prompted Anglo to sell a 26.5% stake in the Sur project to investment firm Mitsubishi, as a defensive measure.

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

On December 22 Anglo filed a legal complaint for breach of contract over what it describes as an "illegitimate premature attempt to exercise the option."

Both firms say they are willing to work to a negotiated settlement.

BS