Antofagasta chief quits after mine let-down
Jim Armitage is the City editor of The Independent and London Evening Standard group of newspapers. He has been a reporter and editor for more than 20 years and was recently shortlisted for the Press Gazette financial journalist of the year and The Society of Editors financial journalist of the year awards. He contributes news, investigative reports and comment to the Independent titles plus a daily column in the Evening Standard.
Thursday 08 March 2012
The chief executive of FTSE 100 copper mining company Antofagasta has resigned after disappointing investors with the slow progress of development of its new £1bn mine in Chile.
News of Marcelo Awad's departure was something of a shock, coming just a week before Antofagasta is due to publish its full-year profit figures.
Despite effectively running the London-headquartered company, Mr Awad was controversially not on the main board of directors. Consequently, he is not required to disclose his pay, bonuses or shareholdings.
Chairman Jean-Paul Luksic, scion of the Luksic family which still owns around 56 per cent of the £12bn company, has taken over operational control while a successor is found.
Antofagasta would not comment on whether, or how much, Mr Awad will get as a payout.
He became chief executive in 2004.
Some observers pointed to the slow progress made in developing the company's fourth major mine in Chile, Esperanza, as the reason for Mr Awad's sudden departure.
"The Esperanza mine is a big project and there has been some frustration that it has taken longer to get into full production than hoped. The feeling is Awad took his eye off the ball," said one investor.
Others claimed that the business, named after the Chilean region where most of its mines are, had begun to look slow-footed compared to rivals such as Rio Tinto, which have pushed into major new projects in Asia and Africa.
Antofagasta refused to give any reason for Mr Awad's departure.
In a bid to stave off concerns about next week's financial results, the company stressed that the figures would be in line with the market's expectations.
Shares in the company fell only 7p to 1230p, as investors took heart at the assurance about profits.
Despite its unorthodox corporate governance, the shares still trade at a premium to rivals because of the company's habit of paying out big dividends to investors.
- 1 School kitchen manager 'fired from Colorado school for giving hungry students free lunches'
- 2 California man brutally beat 82-year-old Sikh grandfather he mistook for 'one of those people'
- 5 Charles Kennedy 'had better judgement drunk than many sober politicians' says Ian Hislop
California man brutally beat 82-year-old Sikh grandfather he mistook for 'one of those people'
Amber Peat: Body found in search for missing 13-year-old who left house after argument with her parents
Alton Towers crash: Four guests seriously injured as Smiler ride carriages collide
Charles Kennedy dead: A guy once asked the Lib Dem leader who his favourite Muppet was and his letter response was wonderful
Gay teenager 'forced to have sex with his own mother' to 'cure' his homosexuality, campaigners in India say
Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination
Migrants in Kos: Photos show real tragedy after Brits abroad complain of 'awkward' holidays
British tourists complain that impoverished boat migrants are making holidays 'awkward' in Kos
Michael Gove determined to scrap the Human Rights Act – even if Scotland retains it
Threat to scrap Human Rights Act could see UK follow Nazi example, warns UN official
Church of England 'one generation away from extinction' after dramatic loss of followers
iJobs Money & Business
£30000 - £35000 per annum: Recruitment Genius: The UK's fastest growing, multi...
£70000 - £90000 per annum: Recruitment Genius: A Financial Reporting Manager i...
£23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...
£13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...