Codelco accounting scandal claims eight more employees

Chile's state-owned mining company, Codelco, has dismissed an additional eight employees, including senior executives, following new evidence of irregularities in their accounting records related to copper production. The latest dismissals include the general manager of the Salvador division, Patricio Viveros, as well as managers responsible for mineral resources and development in the Chuquicamata and Ministro Hales divisions.

Chile's Mining Minister, Daniel Mas, emphasized the importance of transparency and integrity in his official statement.

The investigation into the accounting scandal began after an internal audit discovered that approximately 20,000 tonnes of copper were included in December 2025 production records without meeting the necessary criteria for actual output. This led to a separate audit uncovering an additional 27,000 tonnes of copper, which was improperly recorded as commercially ready material, representing roughly 2% of Codelco's reported own-mine production in 2025.

These findings have raised concerns about the reliability of Codelco's production data and its potential impact on performance-based bonuses.

The irregularities did not necessitate changes to Codelco's audited 2025 financial statements. In May, Chile's National Public Prosecutor's Office appointed a regional prosecutor, Aquiles Cubillos, to lead a criminal investigation following complaints from Codelco and Congressman Jaime Mulet. The investigation has expanded to determine if the same copper was counted as production by multiple divisions, potentially inflating reported output at Ministro Hales and Salvador during 2024 and 2025.

Codelco has hired external auditors, Ernst & Young and KPMG, to investigate the scale of the discrepancies, identify those potentially responsible, and assess the economic impact. The company is also conducting a separate audit overseen by Chile's Comptroller General. Felipe Lagno has been appointed as the new general manager of Salvador, replacing Viveros. The company's leadership is under pressure as it grapples with declining ore grades, project setbacks, and record-high debt.