Anglo American protects its rights in Chile while open to a commercial solution
Anglo American announces that it has filed a writ today with the Court of Appeals in Santiago, for distribution to the competent court, against Codelco for breach of contract.
Anglo American’s writ states that Codelco breached the option agreement in relation to Anglo American Sur (“AAS”) and the procedures set out in that agreement. The breach consists of Codelco’s premature attempt to exercise the option and Codelco’s actions aimed at preventing Anglo American from exercising its contractual rights under the option agreement. The action seeks to render ineffective the potential future exercise of the option by Codelco and also seeks damages.
Anglo American owes a duty to its shareholders to take all reasonable steps to protect its rights and will continue to do so. However, following Anglo American’s announcement on 9 November 2011 of the sale of a 24.5% shareholding in AAS to Mitsubishi, Anglo American has stated consistently that it is open to working with Codelco to arrive at a commercial solution in respect of the option agreement that is in the long term interests of both companies’ shareholders.
Cynthia Carroll, Chief Executive of Anglo American, said: “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. While both Anglo American and Codelco have taken legal measures, this does not detract from our willingness to reach agreement with Codelco."
Anglo American is one of the world’s largest mining companies, is headquartered in the UK and listed on the London and Johannesburg stock exchanges. Anglo American’s portfolio of mining businesses spans bulk commodities – iron ore and manganese, metallurgical coal and thermal coal; base metals – copper and nickel; and precious metals and minerals – in which it is a global leader in both platinum and diamonds. Anglo American is committed to the highest standards of safety and responsibility across all its businesses and geographies and to making a sustainable difference in the development of the communities around its operations. The company’s mining operations and extensive pipeline of growth projects are located in southern Africa, South America, Australia, North America and Asia.www.angloamerican.com
Posted: December 27, 2011