Codelco Case Analysis

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Case Study Codelco Copper Mines Submitted to Dr. Christine Alexander By Deshpande Nikhil Nitinrao CWID: 50065312 Course MIS 502-01E Spring-2011 21/02/2011 Texas A&M University – Commerce Commerce, Texas Introduction Corporation National del Cobre, called as Codelco is a 100% owned by the Chilean government. The maximum of the copper resources in the world were located in the Chilean Andes. In northern Chile, Barren rock folded into the horizon as far as the eye could see. Chuquicamata is one of the jewels in the crown of Codelco. Mile-wide hole is the hub of the region’s activity. Multi-ton trucks’ wheels were taller than any human slugged along the road ways carved into the sides of the crater. Juan Villarzu was appointed as the new CEO of Codelco in December 1993 by the newly elected President of Chile Eduardo Frei. Villarzu was re-appointed as CEO of Codelco by President Lagos Frei’s successor. Codelco was considered as one of the most professionally managed firms in South America, though it was government owned company. Villarzu was very interested in giving advantages to Codelco. He wanted to innovate different technologies in the mineral extraction, industrial processes, communications and data processing because he believed that these technologies will definitely help Coldelco. They will make Codelco more efficient. Important Facts: 32 % of the total copper resources available in the world were located in the Chilean Andes. The largest exporter of the country was the Codelco. Codelco became leader because of its position as one of the most competitive and lowest cost copper producers in the world. The main hub of the region’s activity was the mile-wide hole in the earth. Multi-ton trucks’ wheels were taller than any human slugged along the road ways carved into the sides of the crater. Spiraling around its perimeter, the trucks
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