KEY POINTS
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Codelco dismisses eight employees over suspected production over-reporting.
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Investigation examines possible double counting at two mining divisions.
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Chilean miner continues efforts to recover from a two-decade production low.
Chile’s state-owned mining company, Codelco, has dismissed eight employees, including senior managers, as part of an investigation into the alleged over-reporting of copper production figures for 2024 and 2025.
The company announced the dismissals on Thursday, October 29, following an internal review that identified possible irregularities involving production records at some of its mining operations.
Those affected include managers at the Chuquicamata, Ministro Hales and Salvador divisions, as well as employees at the company’s corporate headquarters.
The investigation centres on concerns that Codelco’s reported copper output for the two years may have been artificially inflated.
Senior managers among those dismissed
Codelco said the employees removed from their positions held responsibilities across mining operations, mineral resources, production assessment and corporate accounting.
Among those dismissed were managers responsible for mineral resources and development at Chuquicamata, Ministro Hales and Salvador, alongside their counterparts at the company’s headquarters.
The company also removed Salvador’s smelter operations superintendent and the head of quality and metallurgical balance at Ministro Hales.
Another dismissed employee was the head of metallurgical valuation within Codelco’s corporate accounting department.
In a separate announcement, the miner appointed Felipe Lagno as general manager of its Salvador division. He replaces Patricio Viveros, whose position was among those affected by the disciplinary action.
The latest dismissals follow an earlier decision by Codelco to remove another executive and take disciplinary action against other employees after an audit identified improper production reporting involving the Chuquicamata and Ministro Hales mines.
Investigation points to possible double counting
Codelco said earlier this month that its production figures for 2024 and 2025 appeared to contain artificially inflated output from the Ministro Hales and Salvador divisions.
One possible explanation under investigation is that both operations may have claimed the same copper production, resulting in the duplication of output in the company’s reported figures.
The suspected double counting raises questions about the accuracy of the production data used to assess the company’s performance over the two-year period.
The investigation is intended to establish how the reporting irregularities occurred and determine the responsibilities of employees involved in compiling and validating the figures.
Codelco has not provided a final assessment of the amount of copper potentially affected by the suspected over-reporting.
Production challenges add pressure on the miner
The controversy comes as Codelco continues efforts to recover from a prolonged decline in copper production.
The company, one of the world’s largest copper producers, has struggled to increase output since production fell to its lowest levels in two decades in 2022 and 2023.
Improving production has been important to its position in the global copper market, particularly as demand for the metal remains significant for electricity networks, renewable energy infrastructure, electric vehicles and other industrial applications.
The latest reporting investigation adds another challenge as the state-owned miner works to improve operational performance and restore confidence in its production figures.
Codelco has not disclosed a final outcome of the investigation or indicated whether further disciplinary measures will follow.
