Codelco Requests ICC Arbitration with Ecuador
Codelco announced the start of a new instance to promote compliance with the agreements signed by the National Mining Company of Ecuador Enami EP
Codelco announced the start of a new instance to promote compliance with the agreements signed by the National Mining Company of Ecuador Enami EP regarding the Llurimagua mining project, located in the province of Imbabura, 80 kilometers from Quito. The relationship between Ecuador and Enami EP with Codelco dates back to a binational framework agreement signed between Chile and Ecuador in 2008 that included activities in various areas of interest, and subsequently to the signing of multiple agreements between Ecuador and Chile and the companies of both countries. In 2015 Enami EP and Codelco signed the terms of the shareholders agreement for Llurimagua. In 2016, Codelco notified Enami EP of the fulfillment of all agreed milestones and, after extensive negotiations, in 2019 both companies agreed on the definitive terms for the partnership. To date, Codelco has complied with all its obligations related to the project and its protection, including relevant investments, for the benefit of the project itself and of Ecuador.
The current agreements establish an arbitration based in Paris before the International Chamber of Commerce for the resolution of controversies, for which Codelco determined to exercise its right before said instance in safeguarding the project and the investments made.
Codelco hopes that the exercise of this process will make it possible to reach an agreement of mutual benefit between the parties and that it will direct them to the development of the Llurimagua project.