Saturday, January 31, 2009

Codelco Won't Take Up Sur Option

Chilean state copper giant Corporacion Nacional del Cobre, or Codelco, has said in a statement that it won't be exercising its option over a 49% stake in Anglo American's Sur complex at this time. The option is valid until 2027 and Codelco plans to reevalute it when it comes up again in January 2012.

Codelco purchased the option for $175million from a smaller state mining company Empresa Nacional de La Minera, (Enami). Anglo acquired the Sur complex, formerly known as La Disputada de Las Condes, in 2002 from Exxon Mobil Corp, who had bought La Disputada from Enami in 1978. That transaction included the option that Enami has the right to exercise every three years over a 49% stake. The Sur complex includes the Los Bronces and El Soldado copper mines and the Chagres smelter.

Codelco was one of the leading contenders to buy the property when it was put up for sale in the early 2000s, however the Finance Ministry didn't authorize the expenditure.

Both Los Bronces and Codelco's Andina copper mines are located on the same copper vein.

"Codelco expressed its interest to Anglo American as well as its disposition to continue deeping cooperation and operations between Los Bronces and Andina, which can bring added value to both companies," the company said in a statement.

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