Codelco to get $4 billion from ChileStaff writer ▼ | August 6, 2014
The country's state owned mining company Codelco of Chile will receive a $4 billion investment over the next five years, the government announced, following the board's unanimous vote to appoint Nelson Pizarro as the new head of the company.
Chile The government will support the company after boss leaves
Previously, Codelco handed over all profits to the government which would then recapitalize a portion of funds back into the company on an annual basis. The system was criticized by the company as it made planning for long term projects difficult to manage while the state-run firm was frequently frustrated by lower than anticipated returns.
President Michelle Bachelet's administration announced the proposal of a capitalization law earlier in the year, and Arenas said the draft bill will be submitted in August, which falls in line with the time frame demanded by the Copper Workers Federation (FTC) on threat of protest.
Mr. Pizarro will oversee a portfolio that Codelco has named the "most challenging in the world," according to El Mostrador, as it looks to develop up to $25 billion in projects up to 2025. ■