Chile's state-owned copper company Codelco and British firm Anglo American PLC have settled their long-running conflict over control of a promising copper mine with a multi-billion dollar deal that includes major new Japanese investments in Chile.

The settlement removes uncertainty about the London-based company's future in the world's top copper-producing country.

Codelco had sued to enforce an option to buy 49 percent of the Anglo American Sur subsidiary with financing from Mitsui & Co. after Anglo American sold a fourth of its Chile subsidiary to Mitsubishi Corp. instead.

The settlement leaves Anglo American with a controlling 51 percent stake, Codelco with 24.5 percent, Mitsubishi with 19.5 percent and Mitsui with 5 percent. Codelco was able to increase its holdings at a discount, and both Japanese companies now have a firm foothold in Chile.