Sources claim that Jorge Gomez will be named as the new CEO of Chile's Codelco.

Sources with knowledge of the situation said that Codelco, Chile's state copper giant, is set to appoint Jorge Gomez to its new CEO position on Wednesday as it continues to deal fallout from a scandal involving inflated production numbers.

Gomez, who has been the CEO of 'the Collahuasi Copper Mine, one of world's largest copper mines, since 2012, will replace Ruben Alvarado.

Alvarado was'set to speak at the Congress on Wednesday, but cancelled his appearance.

Gomez was a top executive at Codelco, responsible for mines in Central Chile, for 18 months before joining Collahuasi.

The move is part of the far-right president Jose Antonio Kast’s reshaping Codelco. He has criticised it for having?production and safety issues, and promised to set on a different path.

In May, Kast appointed economist Bernardo Fontaine as the new chairman of board. He also replaced two other board members.

Daniel Mas, the Mining?Minister appointed by Kast to announce these?changes, stated that the new board members?will have a?special mandate' to?lead a investigation and an external audit in order to address recent production problems.

(source: Reuters)