Chilean state-owned copper giant Codelco dismissed eight employees across its Chuquicamata, Ministro Hales, Salvador divisions and Santiago headquarters following investigations into irregularities in production recording and reporting during 2024 and 2025. The move deepens fallout from scrutiny of Codelco's output figures after the company disclosed last week it was investigating evidence of potential double-counting of copper between Salvador and Ministro Hales divisions, which may have inflated reported production. Ernst & Young is investigating that specific case while KPMG conducts a broader review of 2024-2025 output. The accounting problems risk undermining confidence among customers and bondholders as Codelco grapples with operational setbacks and record high debt.
Economy and Mining Minister Daniel Mas emphasized that "transparency and integrity are completely non-negotiable principles in our state-owned companies." A prior audit found approximately 27,000 tons — about 2% of Codelco's reported own-mine production last year — had been improperly recognized as finished despite requiring further processing, leading to earlier dismissals and recalculation of output-linked incentives. Codelco stated the latest dismissals don't preclude additional responsibility being established through ongoing investigations or legal action.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing