Codelco falsified output figures, causing copper production to fall to a 27-year low.

Codelco (Corporación Nacional del Cobre de Chile) has acknowledged errors in its production data, resulting in its 2025 copper output actually falling to the lowest level since 1998—further undermining the recovery narrative of one of the world’s largest copper mining companies. According to a Bloomberg report published Friday, an internal audit found that Codelco had incorrectly classified nearly 27,000 tonnes of copper as finished products, although this copper still required further processing. On Wednesday, the company announced the dismissal of a senior executive involved in the incident and imposed disciplinary measures on other relevant personnel. Codelco stated that this discrepancy accounts for approximately 2% of its previously reported 2025 output of 1.4396 million tonnes. While the finding will not affect its audited 2025 financial statements, it will be accompanied by explanatory notes in its production data disclosures. Chile’s Minister of Economy and Mining, Daniel Mas, posted on X (formerly Twitter) the same day, stating that the government bears responsibility to “tell the truth to the nation” and bluntly declaring that Codelco is “out of control.” Root cause: Misuse of exception clauses The audit revealed that the data error involved two of Codelco’s mines: approximately 20,000 tonnes from the Chuquicamata mine and roughly 6,875 tonnes from the Ministro Hales mine were wrongly recorded as finished products, when in fact they should have been classified as work-in-progress. In its statement, Codelco noted that the audit identified improper application of exception provisions, absence of mandatory approval procedures, and distortions affecting corporate goal-setting and incentive calculations. The company also confirmed that the copper volume removed from the 2025 production tally will instead be counted toward 2026 output.

With over $20 billion in debt weighing down operations and output plummeting sharply, Chile has for the first time permitted Codelco to retain all its profits for reinvestment.

Investor Insight | Wei Xianqian On August 10, Chile’s Minister of Mining and Economy, Daniel Mas, announced that the Chilean government would allow state-owned Codelco to retain 100% of its 2025 profits for reinvestment—a historic first since the company’s founding in 1976. This unprecedented policy reversal aims to buy breathing room for the company, which faces an existential crisis. As a global copper supplier accounting for roughly 5% of worldwide output, Codelco is enduring its most severe production crisis in nearly three decades. This crisis unfolds against a backdrop of surging global copper demand. Copper is an indispensable raw material for building power grids, clean-energy infrastructure, and data centers powering AI computing. S&P Global warns that, without expanded supply, the global copper shortfall could reach 10 million tonnes by 2040; tightening supply has already pushed copper prices this year close to record highs. Yet, despite being a pivotal pillar of global copper supply, Codelco has failed to capitalize on this demand surge. An internal audit conducted by the company in May revealed that its 2025 output had been overstated by nearly 27,000 tonnes; after correction, output stood at just 1.30757 million tonnes—19% lower than in 2021. According to research data from China International Capital Corporation (CICC) Nonferrous Metals, Codelco’s copper output in Q1 2026 declined another 8% year-on-year. Allowing Codelco to retain all its profits—rather than remitting them to the national treasury—is, in Minister Mas’s words, a reluctant measure to “safeguard the country’s credit rating.”

Codelco Dismisses Eight Staff as Copper Output Scandal Widens

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Codelco dismissed eight employees following investigations into production reporting irregularities in 2024-2025. Audits revealed potential double-counting of copper output and improper recognition of finished goods.

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