Chile seeks to modernize state miner Enami

Chile's mining ministry has submitted a bill aimed at modernizing state miner Enami to ensure its autonomy, operational continuity and transparency. 

Minister Aurora Williams told the lower house's mining and energy committee that the proposal takes into account OECD recommendations to guarantee integrity and eliminate any potential conflicts of interest.

Williams said reducing the number of board members from 10 to seven was a key objective. 

The new board would comprise two members appointed by the president, one representing the workers, and four selected through processes organized by the finance ministry.

The two board seats currently held by industry association Sonami, and one each by Corfo, the Institute of Mining Engineers, Cochilco, and the mining ministry, would be eliminated.

Currently, the president also appoints three members and the finance ministry one.

Under the proposal, board members would serve four instead of three years and could be appointed for one more term.

Other modifications include having the board rather than the head of state appoint the head of the company. 

Additionally, shareholder meetings would be introduced, where development policies will be determined, Williams said.

The proposed new business model aims to increase competitiveness and strengthen Enami's capacity to support small and medium miners.

Since its creation in 1960, the firm has provided financing tools, advisory, technical training and helped develop mining operations, among others.

Enami is also buying and processing minerals from small and medium miners and sells the products worldwide.

Currently, Enami operates 14 purchasing centers, 11 development offices and five processing plants.

Industry players have recognized its contribution to the growth of small and medium miners, which has limited the emergence of illegal mining, setting Chile's sector apart from other countries in the region.

However, the company has never undergone significant changes and maintained its original corporate governance structure.

After years of financial difficulties, impacted by the limited economic support received from the State, the bill appears to be part of a strategy to help the company regain its strength.