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 Codelco, the world’s largest copper producer, announced on Friday it has named Ruben Alvarado as the company’s new chief executive, an executive who boasts executive experience in mining, airlines and port management.
The company said in a statement Alvarado has been picked after an exhaustive search to replace Andre Sougarret, who stepped down in mid-June for personal reasons and unspecified “complexities” in running the firm.
The shake up at the top comes as Codelco battles to boost production of the red metal from its lowest level in 25 years, while also cutting ballooning costs.
At the same time, the miner is juggling the demands of leading a government-led strategy to grow output of the coveted battery metal lithium, but under tighter state control.
New CEO Alvarado is a chemical engineer and was a general manager of the Teniente mine division between 2000 and 2004. He was also an executive at LAN Airlines between 2007 and 2012, and general manager of the San Antonio Port Company between 2004 and 2005.
(By Fabian Cambero; Editing by Brendan O’Boyle and David Alire Garcia)
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