/cloudfront-us-east-1.images.arcpublishing.com/copesa/DPDNUHYY7BAG3JXQEDV6GCI3YM.jpg?fit=%2C&ssl=1 "Early closure of Cerro Colorado costs mining company BHP about US $ 500 million")
A fiscal year with good numbers was the one that ended in June for mining company BHP, which operates the Escondida, Spence and Cerro Colorado deposits in Chile. Of course, this last task forced the company to carry out a penalty of US $ 492 million, linked to the decision to anticipate the process of production reduction in the operation, whose environmental license expires in 2023.
“The impairment charge in relation to Cerro Colorado reflects the decision made by the group to reduce Cerro Colorado’s performance during the remaining period of its current environmental license,” it was stated in the delivery of results.
This impairment was added to other extraordinary disbursements incurred by the company, such as the early termination of an electricity contract in Escondida with AES Gener, which will facilitate the fulfillment of the goal set by the company of operating 100% with renewable energy by 2025.
BHP will pay US $ 840 million to terminate contract with AES Gener
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BHP Reports Lower-Than-Expected Profit and Warns Growth Is Cooling Off Outside China
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BHP makes major change in its executive structure that touches Chile
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In the results delivery stage, BHP also announced changes in its structure. One of them involves the departure of Daniel Malchuk, current president of BHP Mineral Americas (which manages the Australian-controlled assets in the region, including Escondida, the world’s largest copper mine).
“Under the leadership of Danny (Malchuk), the Minerals Americas unit has achieved record operating performance at Escondida, advanced on the Spence copper growth project, and laid solid foundations in our potash development option at Jansen. Danny has also overseen the transition of our Chilean operations to renewable energy and desalinated water, ”BHP CEO Mike Henry said in a statement.
His replacement will be Ragner Udd, who will take over from November. The executive brings over 20 years of global experience in operations and leadership in Australia and North America, including serving as President of the Asset at BMA and Vice President of Global Technology Transformation. He is currently the interim Chief Technology Officer, where he realigned the global Technology function, reduced costs, and adjusted priorities to better support BHP’s operational assets.
“The CEO of BHP has announced new appointments to the Executive Leadership Team (ELT). These include two new roles (CTO and Director of Development) to support our company goals to be safer, lower costs and more productive, and to develop a forward-looking portfolio with long-term growth opportunities. ”, It was explained in the letter.
Another change is the arrival of Laura Tyler, who will be the technical director as of September 1, 2020. In her new role, she will be responsible for mineral exploration, health, safety and environment, centers of excellence, technology and the BHP operating system. Also, Caroline Cox will be the Director of External Affairs from the same date. In this last position, Geoff Healy will remain until the end of October.
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