Government states that in May will start Codelco’s Capitalization with higher fresh resources
The mining Minister, said that the model of the previous government, which used an accounting issue is not replicated.
The Minister of Mining, Aurora Williams estimated that in May will begin the process of capitalization of Codelco, once it is formed the new board of state Company.
“For us it is very important what happens in the month of May, which is the change of the directors who are trusted by the president (Michelle Bachelet); therefore, there are going to deliver signals that correspond and relate well with the proper functioning of corporate governance, amount and form of capitalization, “said the minister yesterday under the CRU World Copper Conference 2014.
When asked about whether the form will capitalize with fresh resources or in the same way than the previous government such accounting-Williams said that will favor the first option.
“In practice structural projects require fresh funding. The truth is that any different situation no real need concrete of Codelco, which is to realize structural projects, and require new resources, “she said.
“We are looking at alternatives to naturally deliver funding Codelco required to carry out these structural projects, beyond the natural need to check that each technically meet all requirements and also that Codelco effectively deliver all their expertise to develop an efficient administration as possible,”, she added.
Amount and term
When asked by the amount of capitalization Codelco would need, the chief executive of the copper company, Thomas Keller, said “the board submitted to consideration the three-year business plan of the company as provided by law. This document is a proposed investment program and a proposal on financing and the authorities are who consider the arguments and proposals in this area are contained there”.
In any case, he said “no big surprises (…) because the Codelco’s strategy remains the same, focused mainly on the development of our mining structural projects also focused on further consolidating the success of our cost containment projects and productivity”.
As to whether the level of funding that could resemble asked last year-US $ 1,200 million- Keller said “we have very similar levels of recent years to the investment; therefore capitalization levels are consistent with the plans that have been presented in the past. “said the executive.
Regarding capitalization would be defined when the executive recalled that the law states that in late June, “the representatives of the owner are the ones who decide how much and what amount of profit the previous year are ultimately capitalized”.
Source: Diario Financiero
