1 day ago
Codelco Probes Possible Double Counting in Copper Production
Codelco, a copper company owned by Chile’s government, is checking whether some copper was counted twice.
The possible problem involves reports from its Salvador and Ministro Hales operations in 2024 and 2025.
The company has shared its findings with prosecutors.
It hired Ernst & Young to investigate how much copper may be involved and whether the issue affected money or inventories.
A different review earlier found that about 27,000 tons were recorded as finished copper before they were ready.
Codelco disciplined employees over that earlier issue and recalculated production-related bonuses.
KPMG is also reviewing production records across the company.
Codelco’s new leadership is emphasizing productivity and profitability rather than its former production target.
Codelco is investigating whether copper was counted more than once in 2024 and 2025.
The suspected duplication may involve production reported by its Ministro Hales and Salvador divisions.
The company referred its findings to prosecutors and hired Ernst & Young to assess the scale, impact and responsibility.
A separate audit earlier found about 27,000 metric tons were improperly recorded as finished production in 2025.
KPMG is reviewing production across all Codelco divisions, while Codelco shifts focus toward productivity and profitability.
- Who
- Codelco, Chile’s state-owned copper miner; the suspected reporting involves its Salvador and Ministro Hales operations.
- What
- Codelco is investigating possible double counting of copper production in 2024 and 2025.
- Where
- At Codelco’s Salvador and Ministro Hales operations in Chile.
- When
- The possible duplication relates to 2024 and 2025; Codelco announced the investigation on Tuesday.
- Why
- To establish the scale and responsibility for possible duplicated production records and assess effects on reported output, inventories, finances and incentive payments.
Earlier production strategy
Current production strategy
Company priorities
Earlier production strategy
Under former Chairman Máximo Pacheco, Codelco emphasized restoring production and targeted 1.7 million tons by 2030.
Current production strategy
New Chairman Bernardo Fontaine has effectively abandoned that target and shifted emphasis toward productivity, profitability and value from existing operations.
Key facts
- Company
- Codelco, Chile’s state-owned copper miner
- Suspected issue
- Copper material may have been recorded as production by more than one division
- Relevant operations
- Salvador and Ministro Hales
- Period under investigation
- 2024 and 2025
- New review
- Ernst & Young will assess the possible double counting, its impact and responsibility
- Separate review
- KPMG is reviewing production across all Codelco divisions in 2024 and 2025
- Earlier audit finding
- About 27,000 metric tons, around 2% of reported own-mine output, were improperly recognized as finished production in 2025
Quotes
Jorge Gomez
Chief executive officer of Codelco
“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.”
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Sources
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