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SANTIAGO (Reuters) - The incoming CEO of Codelco has signaled there will be no change inthe Chilean state copper giant's attitude toward its right toacquire 49 percent of Anglo American Plc's assets in south-central Chile, a local newspaper reported onSunday. Thomas Keller, who is set to take the helm of the world's topcopper producer on June 1, also told the paper that if a deal isnot reached within a month, Codelco will revive its litigationagainst global miner Anglo American. The two sides have been waging an acrimonious battle since lastOctober over Codelco's long-standing option to buy a minority stakein the coveted Anglo American Sur (AAS) properties, including theflagship Los Bronces mine. Keller, who is currently Codelco's chief financial officer, is setto become CEO after Diego Hernandez abruptly resigned on Thursdaydue to friction with the board. The departure of Hernandez, announced two days after the feudingminers agreed to pause their court battle to sit down and talk,sparked questions about whether Codelco's strategy in the conflictmight evolve under new leadership. "Our objective continues to be to reach an agreement which isacceptable for Codelco and has to do with (Anglo) recognizing thatwe have the right to 49 percent" of the Anglo American Sur (AAS)properties, Keller told local newspaper El Mercurio. He said that if the company could not reach a deal with Codelco,"we're simply going to go forward in the courts." Keller did not elaborate on what kind of deal would be acceptable.A multibillion-dollar, transnational legal fight between the miningtitans could take up to five years. The spat between Codelco and Anglo centers on an option agreementdating back to 1978. Codelco said in October it planned to exercisethe option to buy a 49 percent stake in AAS, when the option windowopened this January. Just weeks later, however, Anglo surprised markets with thepre-emptive sale of a 24.5 percent stake in AAS to Mitsubishi Corp , with a $5.4 billion deal that dented Codelco's ambitions butwhich it says secured better value for investors. "The strategy that Diego Hernandez devised for Codelco remainscompletely valid for me," Keller said. "The board has been veryclear in that his strategy will remain valid and that my mandate isto continue with the same line of work he was doing." Keller, 55, has a reputation as a sharp, accomplished negotiator.He was the architect of financing for the plan to buy Anglo'ssouth-central Chilean assets and was formerly CEO of the world'sNo. 3 copper miner, Collahuasi, which is part-owned by Anglo. Codelco produced a record 1.735 million tonnes of copper last year,but the company forecasts that 2012 output will dip before risingto 2.1 million tonnes by 2020 as its ambitious expansion plans comeon line. "My mark will hopefully be to not only consolidate Codelco as theworld's top copper producer but also to distinguish it in the worldfor its high levels of efficiency, competitiveness andproductivity," Keller said. Anglo's properties in southern Chile include the expansion projectLos Bronces - where Anglo has invested around $2.8 billion - andthe El Soldado mine, the Chagres smelter and the Los Sulfatos andSan Enrique Monolito exploration projects. Codelco is battling dwindling ore grades, extreme weather and laborunrest as it seeks to boost output at its aging mines. The Los Bronces deposit is adjacent to Codelco's Andina mine, andwould be a major boost to the state miner's production. Thomson Reuters 2012 All rights reserved SUBSCRIBE to Mineweb.com's free daily newsletter now. We are high quality suppliers, our products such as 3528 SMD Leds , Led Diode Resistor Manufacturer for oversee buyer. To know more, please visits Led Diode Resistor.
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