Codelco Audit Reveals 27,000-Tonne Production Overstatement — Executive Fired, Bonuses Clawed Back

An internal audit at CODELCO — Chile's state copper mining corporation — revealed the company overstated approximately 27,000 tonnes of 2025 copper output by misclassifying work-in-process tonnes from Chuquicamata (~20,000 tonnes) and Ministro Hales (~6,875 tonnes) as finished copper. This accounting irregularity pushed CODELCO's true 2025 output to its lowest level since 1998. Budget and management control manager César Márquez was fired, seven additional executives were sanctioned, and the matter was referred to public prosecutors for possible criminal charges. CODELCO is reclaiming approximately US$14.3 million in performance bonuses from some 6,300 workers and executives. Economy and Mining Minister Daniel Mas sharply criticized CODELCO's management. The scandal emerged as the London Metal Exchange copper price reached an all-time record of $6.39/lb (COMEX intraday high: $6.71/lb) in mid-May 2026, driven in part by declining Chilean production, disruptions at Indonesia's Grasberg mine, and a regional sulfuric acid shortage.