Base Metals

Reuters reported that Anglo American plc (LSE:AAL) and Chile’s state-owned Codelco seem ready to settle their dispute over the Anglo American Sur properties. Both companies stand to benefit from the expected outcome, not least because coming to an agreement now means they will avoid a lengthy legal battle in court.

Reuters reported that Anglo American plc (LSE:AAL) and Chile’s state-owned Codelco seem ready to settle their dispute over the Anglo American Sur properties. Both companies stand to benefit from the expected outcome, not least because coming to an agreement now means they will avoid a lengthy legal battle in court.

As quoted in the market news:

The firms have maintained silence over the content of the confidential talks since late May, but sources familiar with the negotiations have told Reuters Mitsubishi could cede part of its stake in Anglo Sur to allow for a deal.

Sources said an agreement is set to see Anglo retaining a 51 percent majority in Anglo Sur, and Mitsubishi yielding a small percentage of about 5 percent to Mitsui, which had agreed to finance Codelco.

Codelco would then get the remaining 24.5 percent at a “compromise” discount to the option value of around $2.8 billion – below an earlier $3 billion value due to weaker copper prices. It is also set to get land, the sources said.

Click here to read the full Reuters report.

MARKETS

Markets
TSX19258.32+195.41
TSXV652.36+5.03
DOW31438.26-62.42
S&P 5003900.11-11.63
NASD11524.55-83.07
ASX6528.40+19.90

COMMODITIES

Commodities
Gold1823.14-7.87
Silver21.16+0.02
Copper3.76-0.01
Palladium1881.50+4.50
Platinum910.50-0.49
Oil110.13+0.56
Heating Oil4.17+0.05
Natural Gas6.39-0.12

DOWNLOAD FREE REPORTS

×