SHARECAST reported that a bitter legal battle appears to be brewing between mining firm Anglo American and the Chilean, state owned copper miner Codelco.

Anglo says it has received a letter from Codelco seeking to exercise an option to buy a 49% stake in Anglo American Sur, a huge copper mining plant in Chile that Anglo has spent billions upgrading.

The dispute dates back to November when Codelco first announced its intention to exercise its option, a move which prompted Anglo to sell a 26.5% stake in the Sur project to investment firm Mitsubishi, as a defensive measure.

On December 22 Anglo filed a legal complaint for breach of contract over what it describes as an illegitimate premature attempt to exercise the option.

Both firms said that they are willing to work to a negotiated settlement.

(Sourced from SHERECAST)