Codelco is investigating evidence that copper production may have been double counted in 2024 and 2025, raising further questions over output figures at the Chilean state-owned miner.
The possible irregularities involve material that may have been recorded as production by more than one division, which could have artificially inflated output reported by the Ministro Hales and Salvador mines, Codelco said on Tuesday. The company submitted the findings to prosecutors and hired Ernst & Young to determine the scale, financial impact and responsibility for any duplication.
“Our decision is to thoroughly investigate any irregularity, determine the corresponding responsibilities, apply the appropriate sanctions and pursue the recovery of any potential financial damage,” Chief Executive Officer Jorge Gomez said in a statement.
The probe adds to scrutiny of Codelco’s production numbers at a critical time for both the company and the copper market. The state miner has struggled to recover output from over two-decade lows that saw it relinquish the title of the world’s top producer to BHP Group, even as tight global supplies and surging demand have pushed metal prices higher.
Under former Chairman Máximo Pacheco, Codelco focused heavily on restoring volumes and targeted production of 1.7 million tons by 2030. New Chairman Bernardo Fontaine has effectively abandoned that goal, shifting the emphasis toward productivity, profitability and generating more value from existing operations.
The latest findings are separate from irregularities uncovered earlier this year in Codelco’s 2025 production figures. An audit found that about 27,000 metric tons — or about 2% of its reported own-mine output — had been improperly recognized as finished production even though the material required further processing. Codelco dismissed an executive, disciplined other employees and ordered production-linked incentives to be recalculated.
KPMG is continuing a separate review of production across all Codelco divisions in 2024 and 2025, while EY will focus on the newly identified potential double counting between Salvador and Ministro Hales. Codelco said the review will determine any impact on reported production and inventories, as well as possible effects on incentive payments.
“Making errors of this nature two years in a row cannot be explained as a simple mistake at a company the size of Codelco,” said Juan Ignacio Guzmán, head of mining consulting firm GEM. “It’s a wake-up call to be more meticulous and always work with the truth, even when it hurts.”