Antofagasta CEO: Prepared To Play Waiting Game Over Reko Diq

Antofagasta PLC (ANTO.LN) is in no rush to negotiate with the petitioner in a lawsuit related to the Reko Diq copper mine in Pakistan, but its chief executive said the company remains committed to the project even if its development becomes somewhat protracted.

Marcelo Awad, chief executive of the Chilean miner, said that the lawsuit dates back to an initial agreement over Reko Diq between a group of geologists who set up a company called Tethyan Copper Co. and BHP Billiton PLC (BHP). Several years later, Antofagasta bought out the geologists and kept the Tethyan name. The petitioner is a Pakistani entrepreneur based in the U.S. who has some exploration licenses nearby Reko Diq and says that the transaction wasn't within the legal framework, Awad told Dow Jones Newswires.

"We want the project and are still committed to it, but we have plenty of time to wait for the outcome of the legal case," Awad said. "We're not prepared to negotiate to resolve the matter with the petitioner, and we think time works in our favor because it gives the authorities more time to prepare themselves on the mining code."

Tethyan Copper Co. is a joint venture between Antofagasta and Canadian miner Barrick Gold Corp. (ABX). Tethyan has a 75% stake in Reko Diq with the Pakistani government holding the remaining 25%.

-By Andrea Hotter, Dow Jones Newswires; +44 (0)20 7842 9413; andrea.hotter@dowjones.com

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