Chile's Piñera reshuffles cabinet, keeps Larraín

Chilean President Sebastián Piñera shook up his cabinet, reassigning four portfolios after a slide in his approval rating but keeping respected Finance Minister Felipe Larraín in his post.

The changes in the defence, energy, transportation and labour positions came a day after Jaime Ravinet resigned as defence minister, the first member of the cabinet to leave since conservative billionaire Piñera took power last year.

The reshuffle also comes amid protests over fuel price hikes in southern Chile.

Mining Minister Laurence Golborne is also taking on the energy portfolio, Senator Andrés Allamand is the new defence minister and Senator Evelyn Matthei is the new labour minister, government spokeswoman Ena Von Baer told reporters.

They will be sworn in on Sunday. The next transportation minister has yet to be chosen, Von Baer said.

Piñera's approval rating fell to 47 percent in December, down from a high of 63 percent in October as a boost from the stunning rescue of 33 trapped miners wore off.

Ravinet resigned as defence minister on Thursday after he became embroiled in controversy for saying Chile's armed forces could be reluctant to help in future catastrophes like last year's earthquake if forced to reveal details of military purchases.

Ravinet was referring to requests by a transparency commission that he explain the cost of a military bridge purchased after February's earthquake and ensuing tsunamis that ravaged towns and killed more than 500 people.