Santiago Appeals Court Upholds Alto Maipo Arbitration Award Against Minera Los Pelambres
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TL;DR
- The Santiago Appeals Court dismissed Minera Los Pelambres' complaint against the arbitrators.
- The arbitral award favored Alto Maipo in a dispute over a long-term energy contract.
- Minera Los Pelambres challenged the award, citing alleged serious faults and a dissenting opinion.
- The court found no grounds for disciplinary action against the arbitrators or the prevailing award.
Overview
On July 11, 2026, the Santiago Appeals Court rejected a complaint by Minera Los Pelambres challenging the arbitral tribunal's decision favoring Alto Maipo in a dispute involving a long-term energy supply contract.
What Happened
Minera Los Pelambres filed a complaint (recurso de queja) against the arbitrators who ruled for Alto Maipo in November 2025 regarding an energy supply contract set to last until 2040.
The tribunal, formed under the Center for Arbitration and Mediation of the Santiago Chamber of Commerce (CAM), ruled by majority in favor of Alto Maipo. Minera Los Pelambres sought to annul the contract, citing Alto Maipo's Chapter 11 bankruptcy filing in the US as grounds for invalidation and sought approximately US$236 million in damages.
The court reviewed the arbitral decision and found that the arbitrators properly examined the alleged insolvency event, contract terms, and evidence. The court concluded the existence of a dissenting arbitrator's opinion does not establish prejudicial or improper conduct.
The Appeals Court concluded there was no evidence of serious fault or abuse by the arbitrators, and the challenge was dismissed, leaving the arbitral award in favor of Alto Maipo intact.
Context
The dispute originated from a 2013 agreement between Alto Maipo and Antofagasta Minerals (Los Pelambres' parent), ensuring stable electricity supply for mining operations. After Alto Maipo entered US bankruptcy proceedings, Los Pelambres attempted early contract termination.
A separate, pending arbitral process exists concerning alleged breaches due to Alto Maipo's power plant outage and subsequent need to source electricity externally for Los Pelambres.
Why It Matters
- The court's decision confirms the arbitration process and award, offering clarity on contract enforceability after bankruptcy events and reinforcing the validity of CAM-administered awards in Chile.
- This development also contributes to the legal landscape for long-term energy contracts between utilities and major industrial clients amid insolvency scenarios.