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Codelco signals strategy shift to prioritize profitability over output
The Chilean state copper producer is facing about $25 billion in debt, output at its lowest level in 28 years, and governance probes, after appointing Bernardo Fontaine as chairman in late May.
Codelco, Chile’s state-owned copper producer, is shifting its strategy to prioritize profitability over production growth as it tackles heavy debt, declining output, and governance challenges under new chairman Bernardo Fontaine, Mining.com reports. Fontaine said the company is reassessing its approach through an external audit aimed at finding operational improvements and new opportunities. He also said the role of executive president will be taken by Jorge Gomez starting Monday, a position comparable to chief executive officer. Codelco carries about $25 billion in debt after years of falling production, with output dropping to its lowest level in 28 years. Fontaine cited weak results and said production has been below estimates for seven years, while pointing to Codelco’s operating infrastructure as a base for improving performance. The leadership change comes as Codelco seeks to restore investor confidence following setbacks including a fatal accident and investigations related to alleged inflated production figures. Mining.com also notes that former executive Cesar Marquez was dismissed earlier this year after an investigation into reported output, and a related scrutiny followed an interview published by Diario Financiero.
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