Chile's state-owned copper giant, Codelco, has acknowledged errors in its production data, revealing that its 2025 copper output actually fell to the lowest level since 1998. This development further undermines the recovery narrative for one of the world's largest copper producers.
An internal audit discovered that Codelco had incorrectly classified approximately 27,000 metric tons of copper as finished product, when this material actually required further processing. In response, the company announced the dismissal of one senior executive involved and initiated disciplinary actions against other personnel.
Codelco stated that this discrepancy represents about 2% of its previously reported 2025 production of 1.4396 million tons. While the findings will not impact its audited 2025 financial statements, the company will include explanatory notes regarding the production figures. Chilean Economy and Mining Minister Daniel Mas commented on social media platform X, emphasizing the government's duty to "tell the country the truth" and stating directly that Codelco is "out of control."
**Root Cause: Misuse of Exceptional Provisions**
The audit results indicate the data errors involved two Codelco mines: approximately 20,000 tons from the Chuquicamata mine and about 6,875 tons from the Ministro Hales mine were erroneously recorded as finished product, when they should have been classified as work-in-progress.
In its statement, Codelco noted the audit identified improper use of exceptional norms, a lack of necessary approval procedures, and impacts on the calculation of corporate objectives and incentive mechanisms. The company also clarified that the copper removed from the 2025 production figures will be included in the 2026 production tally.
**Recovery Outlook Dims as New CEO Prepares to Take Over**
The timing of this incident is particularly sensitive. Economist Bernardo Fontaine is set to assume the role of Codelco's chief executive officer in the coming days. He has long been critical of the company's governance and operational efficiency. His predecessor, Máximo Pacheco, had pushed to restore production to pre-pandemic levels of around 1.7 million tons, but this goal has become increasingly difficult following a fatal collapse at Codelco's largest mine.
Juan Carlos Guajardo, founder of the Chilean mining consultancy Plusmining, remarked that the revised 2025 production figure "begins to more accurately reflect the company's current reality" and expressed anticipation for an in-depth review of the issue by the incoming new board.
**Regulatory Scrutiny Intensifies Amid Ongoing Supply Concerns**
This production data scandal subjects Codelco to heightened external scrutiny. Chile's new government is pushing for stronger oversight of the heavily indebted state-owned miner. In recent years, Codelco has faced persistent operational issues and project delays, forcing it to repeatedly lower production forecasts.
Concurrently, Codelco's supply struggles are among the factors contributing to global copper prices nearing record highs. This misreporting incident not only deepens market doubts about the company's ability to recover its output but also brings increased attention to its role in the global copper supply landscape.