Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Chile’s state-owned copper giant Codelco has named Braim Chiple as its new chief commercial officer, in the latest of a series of top positions changes in the past year, as the miner grapples with falling production and its new role in the country’s lithium industry.
Chiple, who comes from the private mining sector having worked at BHP and Anglo American, will replace outgoing CCO Carlos Alvarado on March 15.
The new executive currently works at Mitsubishi RtM as an adviser and senior consultant for copper trading in South America, Codelco said.
Chile, the world’s top copper-producing country and no. 2 for lithium, saw some key policy shifts last year, with President Gabriel Boric hiking royalties for mining companies and announcing plans for more state control over the lithium sector.
The copper giant is struggling to keep up with the competition after years of underinvestment at its aging deposits. Its costs have increased while production dropped in 2022 to the lowest level in 25 years, putting its position as the world’s no. 1 producer at risk.
Output in the last quarter of 2023 fell to 358,000 tonnes, compared with about 384,000 tonnes in the same period of 2022, based on calculations using full-year output disclosed publicly.
Fourth-quarter output was however higher than the July-September period, and the newly named chief executive officer, Ruben Alvarado, has vowed to guide Codelco through a gradual recovery.
The top boss told a local newspaper in November that he expected total copper production for 2023 to reach close to 1.31 million tonnes, towards the lower end of the estimated range.
Codelco is scheduled to report its official results for 2023 in March.
