Monday, June 16, 2014

Chile: Ouster of Keller as CEO of CODELCO Politically Charged, Interim CEO Octavio Andrade Oses

According to The Latin American Tribune, The Board of Directors of Chilean state-run miner Codelco, the world’s largest copper producer, has named Octavio Andrade Oses as interim CEO.

In a filing with Chile’s securities regulator, Codelco said Andrade, vice president of the company’s central-south operations, would serve as CEO until a definitive replacement is found for Tomás Keller, who ceased his duties Friday (June 13) after being removed in a Board vote earlier this month.

The board members voted 5-3, with one abstention, to oust Keller on June 6 without providing an explanation.
Keller's departure was foreseeable given his disagreements with the company’s new Board, which has been partially overhauled by center-left President Michelle Bachelet.

COMMENT: Keller had said he would not stay on if the current Board did not support his vision for the company.

The executive had spearheaded an ambitious investment plan aimed at boosting output at Codelco’s aging mines and reducing production costs, even as global copper prices have been trending downward due to an economic slowdown in China, the world’s biggest consumer of the red metal.

Codelco Chairman Oscar Landerretche denied that the ouster of Keller, who became chief executive in 2012 during the administration of conservative Sebastian Piñera, was politically motivated.