Codelco is investigating a potential overstatement of its copper production in 2024 and 2025, raising further questions over the Chilean state-owned miner’s reported output.
Officials at Codelco have flagged possible double counting of production between divisions, which may have artificially inflated the company’s output figures in those years.
The potential irregularities involve production reported by the Ministro Hales and Salvador divisions, the company highlighted in its statement.
Codelco has since submitted its findings to prosecutors and hired Ernst & Young (EY) to determine the scale and financial impact of any duplication, as well as responsibility for the irregularities.
Speaking to an investigative commission, Codelco Chairman Bernardo Fontaine says the investigations must identify both “in detecting any individual responsibilities and in identifying the process and control failures” that made the situation possible.
“Our goal will be to clarify the facts, determine responsibilities, correct the failures that made them possible, restore any damages that may have been caused, and strengthen our controls to prevent them from happening again.”
Production under scrutiny
The investigation adds to scrutiny of Codelco’s production figures at a critical time for both the company and the global copper market.
The state-owned miner has struggled to recover output from more than two-decade lows that saw it relinquish its position as the world’s largest copper producer to BHP Group (ASX:BHP), even as tight global supply and growing demand have pushed copper prices higher.
Under former Chairman Máximo Pacheco, Codelco focused heavily on restoring production volumes and targeted output of 1.7 million tonnes by 2030.
Under Fontaine, the company has shifted the emphasis towards productivity, profitability, and extracting more value from existing operations rather than pursuing the previous production target.
Separate cases
The latest findings are separate from irregularities uncovered earlier this year in Codelco’s 2025 production figures.
An audit found that around 27,000 tonnes — equivalent to about 2% of reported own-mine production — had been improperly recognised as finished output even though the material still required further processing.
KPMG is continuing a separate review of production across all Codelco divisions for 2024 and 2025, while EY will specifically focus on issues involving the Salvador and Ministro Hales divisions.
In a statement cited by Bloomberg, Codelco says the review will determine any impact on reported production and inventories, as well as possible effects on incentive payments.
Write to Jackson Chen at Mining.com.au
Main Image: Codelco
