Codelco falsified its production figures; copper output fell to the lowest level in 27 years.

Chile’s state-owned copper company Codelco has admitted to errors in production data, causing its actual copper output for 2025 to drop to the lowest level since 1998, further undermining the recovery narrative of one of the world’s largest copper miners.

According to a Bloomberg report on Friday, an internal audit found that Codelco misclassified nearly 27,000 tons of copper as finished products, when in fact this batch still required further processing. The company announced Wednesday that it had dismissed an executive involved in the incident and taken disciplinary action against other relevant personnel.

Codelco stated that the discrepancy accounts for about 2% of the previously reported 2025 output of 1,439,600 tons, and the findings will not affect its audited financial statements for 2025 but will be accompanied by explanatory notes on production data. Chile’s Minister of Economy and Mining, Daniel Mas, posted on social media platform X that the government has a responsibility “to tell the truth to the nation,” and bluntly stated Codelco has “lost control.”

Root Cause: Misuse of Exception Clauses

The audit revealed the data error involved two Codelco mines: about 20,000 tons from Chuquicamata and about 6,875 tons from Ministro Hales were incorrectly registered as finished products when they should have been classified as work-in-progress.

Codelco noted in its statement that the audit found misuse of exception rules, lack of necessary approval procedures, and impacts on the calculation of corporate goals and incentive mechanisms. The company also stated that the copper removed from the 2025 output will be counted towards 2026 production.

Clouds Over Recovery, New CEO Incoming

The timing of this incident is particularly sensitive. Economist Bernardo Fontaine is set to take over the CEO position at Codelco in a few days; he has long been critical of Codelco’s governance and operational efficiency. His predecessor Máximo Pacheco previously pushed to restore output to the pre-pandemic level of around 1.7 million tons, but this goal became increasingly unattainable following a fatal collapse at Codelco’s largest mine.

Juan Carlos Guajardo, founder of Chilean mining consultancy Plusmining, said that the revised 2025 production figures “begin to more accurately reflect the company’s current reality,” and looks forward to the incoming board conducting a thorough review of the issue.

Increasing Regulatory Pressure and Persistent Supply Concerns

This production data scandal has subjected Codelco to stricter external scrutiny. The new Chilean government is pushing for stronger oversight of the indebted state-owned miner. In recent years, Codelco has repeatedly faced operational issues and project delays, forcing it to revise production forecasts downward multiple times.

Meanwhile, Codelco’s supply difficulties are one of the factors driving global copper prices close to historic highs. This false reporting incident not only deepens market doubts about the company’s recovery abilities, but also raises questions about its position in the global copper supply landscape.

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