Sociedad Minera el Teniente S.A. v. A.G. Norddeutsche Affinerie

Kennecott Copper Corporation (Kennecott) acquired Braden Copper Company (Braden) in 1915. Braden was the owner and operator of the El Teniente copper mine, the world’s largest underground copper mine, located in Chile. In 1967, in cooperation with the Chilean government, Braden restructured the ownership of the mine, ceding 51 percent to the Corporacion del Cobre (Codelco), a Chilean state-owned company, and forming Sociedad Minera el Teniente S.A. (SMETSA) (plaintiff) to own and operate the mine. Part of the purpose of the restructuring was to allow a substantial production increase at the mine. Beginning in 1970, the new Chilean government under Salvador Allende began proceedings to nationalize the mine. Braden sought compensation from the Chilean government, but under the convoluted rules put in place by Chile, the Chilean government ultimately concluded that Braden owed it money, not the other way around. Braden sought to appeal the decision, but there was no practical or effective way of doing so under the new regime. In 1971, Kennecott (acting as a split company of SMETSA) sought to attach copper sent to a German company, A.G. Norddeutsche Affinerie (Norddeutsche) (defendant) for processing by filing an action in Germany that sought damages regarding the nationalization of the mine. The German court issued an injunction requiring Norddeutsche to hold the copper pending the resolution of the claim. Norddeutsche appealed the injunction.