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Codelco CFO resigns amid growing debt concerns

6th October 2023

By: Reuters

  

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LONDON/SANTIAGO- Chile's state miner Codelco, the world's largest copper producer, announced on Thursday its CFO Alejandro Rivera has resigned effective November 3 amid a credit rating downgrade and growing debt.

Rivera's resignation comes just months after the surprise June resignation of Codelco's CEO.

Chile’s Centre for Copper and Mining Studies (CESCO) said in a report seen by Reuters that Codelco is at risk of insolvency due to rising costs and a growing debt pile.

A downgrade from Moody's Investor Services on Codelco's credit rating came on Thursday, which could lead to further increases in financing costs.

Codelco did not name a successor in its statement and said Rivera had resigned to pursue "other professional challenges."

"Rivera participated in the implementation of Codelco's role in the country's national lithium strategy, working directly with the efforts being made both in Atacama and Maricunga," the company said.

Codelco has been tasked with leading an increase in state control over the vast lithium industry in Chile, the world's second largest producer of the metal, targeting to reach an agreement with SQM SQMA.SN by the end of this year.

An industrial engineer with over eight years at Codelco, Rivera previously held executive roles at London-listed miner Antofagasta.

The departure of Codelco's CFO was announced internally earlier this week, a source with direct knowledge of the matter said, adding that it had further undermined staff morale after recent layoffs to cut costs, the source said.

In August, Codelco named Ruben Alvarado as CEO after the resignation of predecessor Andre Sougarret - a respected engineer who gained prominence leading the rescue of 33 trapped miners in 2010 - citing personal reasons and "complexities" in running the company.

Edited by Reuters

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