Chile's Codelco in deal with Mitsui on Anglo stake

13th October 2011, Comments 0 comments

Chile's state-owned mining giant Codelco has reached agreement with Japanese trading house Mitsui for a credit of up to $6.75 billion to buy a stake in a copper mining venture held by Anglo-American in the country.

The deal unveiled Wednesday would allow Codelco, the world's biggest copper producer, to exercise an option to buy a 49 percent stake in the copper-producing operations held by the British-South African conglomerate, known as Anglo-American Sur SA.

The deal would give Codelco control of the operations which include the copper deposits known as Los Broncos and El Soldado, as well as the Chagres smelting facility and exploration projects in Chile.

The unit, which last year produced about 260,000 tons of copper, will be integrated in Codelco's Andina division, and boost the output for the company which produces about 11 percent of the world's copper.

"We are very excited about this opportunity that will help us increase production attributable to us," said Codelco chairman Gerardo Jofre.

He said the company will make a decision in January on whether to exercise the option depending on market conditions and other variables.

Chile provides around 35 percent of global copper supplies.

© 2011 AFP

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