Escondida mine replaces top exec after failing to reach deal with workers

Escondida is forecast to produce about 1.1 million tonnes of copper in the 12 months to June 30, or 5% of the world’s total copper production. (Image courtesy of Rio Tinto, which has a 30% interest in the mine, run by BHP.)

Chile’s Escondida copper mine, the world’s largest, has named Brazilian Mauro Neves as its new president, following a historically long 43-day strike at the operation that ended last week with the parts failing to reach a wage deal.

Escondida — responsible for about 5% of the world’s total copper output — failed to produced more than 120,000 tonnes of the red metal due to the historically long 43-day strike.

Neves, who has held positions at mining giant Vale (NYSE:VALE) and Australian logistics firm Aurizon, takes over from Marcelo Castillo, who had been acting as the mine’s president on an interim basis since August last year.

Castillo, said Escondida in a statement quoted by EFE (in Spanish), will assume the position of vice president of Integrated Operations.

It’s estimated that Escondida — responsible for about 5% of the world’s total copper output — failed to produced more than 120,000 tonnes of the red metal due to the stoppage.

The labour action at the world’s largest copper mine became the longest private-sector mining strike in Chile’s history and its outcome is being considered a disaster for BHP Billiton (ASX, NYSE:BHP) (LON:BLT), who majority owns and operates Escondida. The miner was left with an estimated $1 billion loss and months of work ahead of it before it can fully restore production to pre-strike levels.

Other than BHP, Rio Tinto (LON:RIO) and Japanese companies such as Mitsubishi Corp. (TYO:8058) also hold stakes in the mine.

Chile is the world’s biggest copper producer, and sales of the metal make up for about 60% its export earnings.