Anglo issues writ

Anglo American has filed a writ 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). This breach, according to Anglo American, 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.

In its Press Release, Anglo American says it "owes a duty to its shareholders to take all reasonable steps to protect its rights and will continue to do so". However, the company adds that, following its announcement on November 9 of the sale of a 24.5% shareholding in AAS to Mitsubishi, it 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".

Anglo American's chief executive, Cynthia Carroll, 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."