Copper market’s biggest whale fuels speculation of a major shift
The world’s single biggest buyer of copper, State Grid Corp. of China, has slowed its purchases of copper wire this year.
A Chilean civil court ordered world’s largest copper producer Codelco to publish the agreement for a financing deal of up $6.75 billion with Japan’s Mitsui & Co. (TYO:8031), reports the online version of local newspaper El Mercurio.
On its Twitter page, Codelco replied that it would release the document in compliance with the court order, adding that the company will “continue to exercise its legal rights.”
Codelco got the financing last October, when Mitsui & Co. provided the state-owned company with $6.75 billions. Using this loan, the copper producer wanted to exercise its option over a stake in Anglo American PLC’s (LON:AAL) Sur mining complex in Chile.
That option is the central issue of the ongoing legal battle between Codelco and Anglo American, as the Chilean miner argues that it has legal rights to a 49% stake in the Sur division.
Following the November $5.39 billion deal between Anglo and Mitsubishi, in which the London-based miner sold a 24.5% stake in Sur to Japan’s Mitsubishi Corp. (TYO:8058), Anglo American has insisted that Codelco it is entitled to up to 24.5% of the mining complex.
Anglo American had filed a petition with a local court seeking the public release of the document. The London-listed miner was previously ordered by a Chilean court to publish the contract of its transaction with Mitsubishi.
Source: zippaloans.com.
2 Comments
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Many people would be affected if Codelco forced to disclosed Mitsui loan contract. Their production would decreases.
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A loan contract requires firm constancy to various guidelines. In the ideal case a mortgage agreement is provided in front of an attorney to check for its correctness and authenticity.