Codelco's Leadership Shift Amid Production Scandal

Chile's state copper giant, Codelco, is poised to appoint Jorge Gomez as its new CEO this Wednesday. The decision follows a scandal over inflated production figures that have embroiled the company, according to sources who spoke with Reuters. Gomez, who will replace outgoing CEO Ruben Alvarado, previously led the Collahuasi copper mine, one of the world's largest, since 2012.

Ruben Alvarado was scheduled to address Congress on Wednesday, though he later cancelled, as reported by legislative sources. Jorge Gomez, before his tenure at Collahuasi, was a key executive within Codelco for 18 months, overseeing mines in Chile's central region.

This leadership change is part of a broader restructuring by far-right President Jose Antonio Kast, aiming to tackle Codelco's production and safety concerns. Last May, Kast appointed economist Bernardo Fontaine as chairman of the board, replacing Maximo Pacheco, alongside two other board changes. Mining Minister Daniel Mas emphasized a "special mandate" for the new board to lead an investigation and external audit addressing recent production challenges.

(With inputs from agencies.)