Anglo American hails more Chilean copper at Los Bronces

John MacKenzie said that Los Broncos would produce 233,400 tonnes of copper this year, an annual increase of 5.6pc. Anglo's expansion plans will ultimately make Los Bronces the fifth-largest copper mine in the world.

Anglo is trying to increase production of its key commodities after it rejected a nil-premium "merger of equals" approach from Mick Davis' Xstrata in 2009. Cynthia Carroll, Anglo's chief executive, argued that her company's organic growth profile was superior to Xstrata and rejected the talk outright.

However, the Los Bronces mine is now subject to a battle between Anglo American and Codelco. The state-owned Chilean copper group wants to exercise an option to buy a 49pc stake the subsidiary that owns the mine, in a move that sent fears of resource nationalism through the global mining industry.

The two groups have squared up for a lengthy battle in the Chilean courts after Anglo sold a 24.5pc stake in the operation to Mitsubishi Corporation for $5.4bn (£3.4bn).

Diego Hernandez, Codelco's chief executive, obtained an injunction on November 15 to stop Anglo from selling any further interest in the subsidiary.

The sale to Mitsubishi cuts in half the holding Codelco can buy, according to Anglo.

On Tuesday, the Chilean government urged the two companies to settle the dispute without a protracted legal battle.

"First sit down and find what the different official positions are and find the best solution for the interests of all Chileans," Hernan de Solminihac, Chile's mining minister said. "If a deal can't be reached, follow the legal route."

He urged Anlgo to recognise Codelco's right to own the full 49pc stake.