Anglo American said Thursday it had filed a writ with Santiago's Court of Appeals, suing the Chilean firm for breach of contract in a dispute over its south Chilean assets.
Chile Mining News
Chile will produce 5.5 million mt of copper next year as new operations enter production, the country's national mining association SONAMI said Tuesday.
South American Silver (TSE:SAC) stock shot up 17% in morning trading today on the Toronto Stock Exchange to $1.62 a share after the company announced the findings from its NI 43-101-qualified resource estimate of the company's Escalones copper-gold-silver project in central Chile.
Anaconda Mining sells Chilean iron ore assets to Hierro Tal Tal; Proceeds to assist in debt repayment
Anaconda Mining Inc. ("Anaconda" or "the Company") - (TSX: ANX) is pleased to announce that, pursuant to an agreement dated today, it has closed the sale of its Chilean iron ore exploration assets to a private Chilean company, Hierro Tal Tal S.A. ("Tal Tal"), for up to US$11 million in cash payments, a gross sales royalty and a 1.25% carried interest in Compania Portuaria Tal Tal S.A. ("CPTT").
Quadra FNX Mining (TSE:QUX) is up a whopping 39% today on news of a multi-billion-dollar takeout bid. The Canadian base metals producer with offices in Toronto and Vancouver said it has agreed to have all its outstanding shares and warrants acquired by KGHM Polska Miedź S.A. (KGHM) for $3.5 billion. Quadra FNX has operating mines in Ontario, Arizona, Nevada and Chile, where the company is also developing the Sierra Gorda copper-molybdenum mine. The project is a joint venture between Quadra FNX and Japanese metals producer Sumitomo Mining.
Output of copper cathodes and copper concentrates are beginning to be affected by a work stoppage that began Monday at the giant Collahuasi copper mine in Chile. Reuters reports that the mine, jointly owned by Xstrata and Anglo American, has implemented a contingency plan to deal with the labour action, which about 10% of workers are participating in: Some workers in Collahuasi, which produces about 3 percent of the world's copper, downed tools on Monday over fears of coming layoffs. The company later on Monday announced it had laid off a "limited" number of workers in response to a partial one-day strike in October, a move that could stoke tensions between management and the union.
Chilean state copper producer Codelco will invest US$10mn-30mn within the next four years in Ecuador following the signing of an exploration agreement.
For the third time this year, workers at the Collahuasi mine in Chile are on strike. The union representing the world's third largest copper mine is accusing management of reneging on agreements that ended a work stoppage in October, AFP reports. Production was paralyzed on July 30 and October 29 when workers downed tools. Collahuasi is owned by Switzerland’s Xstrata and Britain-based Anglo American. Reuters reports Collahuasi produced 504,000 tonnes of copper in 2010, when output was hit by a month-long strike. The mine expects to produce 500,000 tonnes of copper this year. It supplies roughly 3% of the world’s copper.
NGEx Resources Inc. ("NGEx" or the "Company") (TSX: NGQ.TO- News) is pleased to announce the start of drilling on its South American copper-gold projects.
The world's top copper producer, Chile's Codelco, said on Friday it produced 1.25 million tonnes of copper in the nine months to September, up 3.5 percent from the same period last year. The state-run miner said pre-tax profits rose 37 percent during the January-September period from a year earlier to $5.3 billion. Codelco is having one of its best production years ever, and will beat its 1.7 million tonne output target for 2011, Chairman Gerardo Jofre told Reuters on Wednesday.
World No.1 copper producer Chile's Codelco said on Friday it is open to negotiating a deal with global miner Anglo American that safeguards the "value" of a disputed asset option, but the two sides have yet to talk.
Paul Moore reports from Chile that Anglo American has delivered first copper production on schedule from its Los Bronces expansion project in central Chile. The expansion of Los Bronces is expected to more than double (on average over the first three years of full production) the mine's existing production of 221,000 t/y and is the second of Anglo American's four major strategic growth projects to begin production during 2011.
Anglo American has announced the delivery of the first copper production on schedule from its Los Bronces expansion project in central Chile, visited by IM Editor Paul Moore on November 22. The expansion is expected to more than double (on average over the first three years of full production), the mine's existing production of 220,000 t/y and is the second of Anglo's four major strategic growth projects to begin production in 2011.
Chilean Government urged state-owned copper producer Codelco and Anglo American Plc (AAL) to seek an out-of court resolution to a contractual dispute over the sale of a stake in Anglo’s mine and smelting assets in the country. Codelco's Chief Executive Officer Diego Hernandez sai today in a public event that while the company is prepared to negotiate with Anglo, the starting point of any discussions would be to recognize Codelco’s right to the full 49 percent stake.
Global miner Anglo American has risked its future in the world's largest copper producing nation by denying Chile's state-owned Codelco a 49 percent stake in its Sur unit, said Diego Hernandez, Codelco's chief executive on Thursday. Miguel Angel Durán, president of Anglo American’s Chilean operations, told a Chilean newspaper that the company wants to sit down with Codelco, the Chilean state mining company, and find a way to avoid years of litigation over Anglo’s Chilean assets. The copper giant is putting together a crack team of lawyers and financial advisers from Chile and New York to fight Anglo’s attempt to block it from exercising an option to buy half of Anglo’s Chilean copper assets for $6 billion. Anglo early in November sold 24.5% to Mitsubishi for $5.4 billion.
Chile will draw on all options at its disposal, including suing for damages, to defend the interests of state-owned Codelco in its fight with Anglo American, President Sebastián Piñera told the Asia Pacific Economic Cooperation Forum on Saturday. Earlier Codelco's chief Diego Hernandez said in a press interview the looming legal battle with Anglo could take three to four years to be resolved. The state-owned copper giant is putting together a crack team of lawyers and financial advisers from Chile and New York to fight Anglo's attempt to block it from exercising an option to buy half of Anglo's Chilean copper assets for $6 billion. Anglo last week sold 24.5% to Mitsubishi for $5.4 billion.
The Telegraph reports Anglo American CEO Cynthia Carroll took a last-minute flight to Santiago on Thursday to calm tempers over the sale of a 24.5% stake to Mitsubishi Corporation but neither Chile's president Sebastian Pinera, finance minister Felipe Larrain or mining minister Hernan de Solminihac would see her. She is understood to have contacted all three before announcing the $5.39 billion deal that undermines state-owned copper giant Codelco's plan to exercise the 33-year old option to buy half of Anglo's Sur copper complex. The Mitsubishi transaction values Anglo Sur at $22 billion and Anglo's stock is up 4.8% since the deal. Codelco was offering $6 billion for 50% and is now putting together a team of top New York and Chile litigation firms and financial advisor Rothchild.
Outotec has signed a contract with Quadra FNX Mining for the design and delivery of a process solution to the new copper-molybdenum concentrator located in Sierra Gorda, close to Antofagasta in northern Chile. Deliveries of Outotec TankCell® e300 flotation cells, concentrate and tailings thickeners as well as filters are scheduled to be completed during 2012. In addition, Outotec is also providing installation, commissioning and start-up services for the delivered equipment.
Reuters reports the Chairman of Chile's Codelco vowed on Thursday to go ahead with buying a 49% stake in Anglo American's southern Chilean properties. The state copper giant said that it would take all steps to ensure its option is respected and that it did not mind if Anglo cedes a part of its own stake to others. Anglo American on Wednesday sold a 24.5% stake in the properties that includes the newly expanded $2.8 billion Los Bronces mine to Japan’s Mitsubishi Corp. for $5.39 billion, undermining plans by Chile’s state-owned Codelco to exercise an option to buy half of it. Chile decided at the end of October to exercise the 33-year old option that has lapsed before, blindsiding Anglo. Anglo said the transaction values its Chile properties at $22 billion. Codelco was offering $6 billion for 50%.
Reuters reports Anglo American on Wednesday sold a 24.5% stake in its southern Chilean properties to Japan's Mitsubishi Corp. for $5.39 billion, undermining plans by Chile's state-owned Codelco to exercise an option to buy half of it. Chile decided at the end of October, barely a week after Anglo American announced that the $2.8 billion they splashed on expanding their flagship Los Bronces mine will start to bear fruit before year end, to exercise the 33-year old option that has lapsed before, blindsiding Anglo. Anglo said the transaction values its Chile properties at $22 billion. Codelco was offering $6 billion for 50%.
Peru can remain competitive with neighbouring Chile despite a recent decision to hike mining taxes. Peru, the world's third largest copper producer, is able to offset its higher tax on mining companies (which is 3.8 percentage points higher than Chile's) recently imposed by new President Ollanta Humala, because it has cheaper labour and electricity costs, reports Bloomberg:
TORONTO, ONTARIO--(Marketwire - Nov. 3, 2011) -
Reuters reports unionised Chilean workers at Collahuasi, the world's third most productive copper mine, halted production on Saturday in a strike demanding a wage bonus, but were back at work on Sunday after after reaching an agreement with management, the company and union said. Collahuasi is owned by Switzerland's Xstrata and the Britain-based Anglo American. Collahuasi produced 504,000 tonnes of copper in 2010, when output was hit by a month-long strike. The mine expects to produce 500,000 tonnes of copper this year. It supplies roughly 3% of the world's copper, half that of Chile's other giant copper mine Escondida.
Barely a week after Anglo American announced that the $2.8 billion they splashed on expanding their flagship Los Bronces mine will start to bear fruit before year end, Chile's state-owned Codelco decides to exercise an option to acquire half of it. Codelco has passed on neighbouring Los Bronces, a smelter and a second mine before, but Chile's finance minister on Friday warned Anglo that it must honour the deal that dates back to 1978. Codelco has put together $6 billion but analyst say that short changes Anglo by billions. What must really gall Anglo, which seems to have been taken by surprise, is that they will have to pay around $1 billion in taxes on the transaction.