Codelco: Copper miners top Econsult EVA ranking

Monday, May 19, 2008

Copper miners again dominated the top spots in the ranking of Chilean companies based on 2007 performance by business consultancy Econsult, according to state miner Codelco.

Econsult uses the Economic Value Added (EVA) indicator to determine performance.

Minera Escondida, controlled by BHP Billiton (NYSE: BHP), secured the number one spot with a rate of value creation of 121%, sending last year's number one, Pucobre, to the number two spot with value generation of 107%, according to Codelco.

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The state giant stayed in third place with 87%, although the figure represents a decrease in its rate of value creation from 101% in 2006. Econsult attributed the slowdown to lower production and sales volume owing to falling grades and labor issues, as well as increased costs that offset higher copper prices, Codelco said.

Overall, the copper producers on Econsult's list of 150 Chilean companies accounted for 96% of the added value shown by the ranking in 2007. The average EVA for the entire list of firms was 13.9%, less than the value generation of 15.4% registered in 2006, the statement said.

Codelco is the world's biggest copper producer.