Codelco CFO Alejandro Rivera Resigns to Focus on the Lithium Sector

Codelco, Chile’s state-owned copper giant, faces another challenge as its Chief Financial Officer, Alejandro Rivera, resigns amidst declining profits and increasing debt levels caused by slumping output. Rivera’s resignation follows Moody’s Investors Services cutting Codelco’s investment-grade credit rating by one notch, leading to a drop in bond prices. This development comes shortly after the appointment of Ruben Alvarado as Chief Executive Officer, marking the third CEO change in just over a year.

Codelco is striving to catch up after decades of underinvestment in its aging Chilean deposits. However, with rising costs and production at its lowest point in a quarter-century, its position as the world’s leading copper producer is at risk. The newly restructured management team faces the challenge of stabilizing the company as mine incidents and project delays exacerbate the impact of declining ore grades.

After serving as CFO for eight years, Rivera will leave on November 3, according to Codelco. A replacement has not been announced. Rivera is transitioning to a new role focused on lithium within the mining giant. In an interview on Friday, Codelco Chairman Maximo Pacheco revealed that Rivera “will remain part of our team, working in the field of lithium.” Pacheco did not provide specific details about Rivera’s new role but hinted at forthcoming “exciting developments related to his responsibilities in the lithium sector.”

The Chilean government has entrusted Codelco with a prominent role in a novel public-private framework for its lithium industry. Under this arrangement, the state maintains a majority stake in strategically significant areas.

Pacheco emphasized that despite external concerns about diversifying into lithium, Codelco remains steadfast in its commitment to a well-defined growth strategy. This strategy involves collaborating with private enterprises to establish a separate company dedicated to lithium.

Pacheco stated, “Lots of people have mentioned to us that we should not be distracted by lithium. And we’re saying, look, we are not distracted. We have a plan, and we have a growth strategy with lithium to partner with private companies in a separate company.”

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