Chile's state miner Codelco has dismissed eight people, including Salvador general manager Patricio Viveros, after investigations into overstated copper production found new evidence of irregularities. Felipe Lagno will replace Viveros.
At a glance
- The dismissals cover the Chuquicamata, Ministro Hales and Salvador divisions and the Santiago head office.
- Earlier audits found about 27,000 tonnes of copper wrongly booked as finished output, about 2% of Codelco's 2025 mine production.
- EY, KPMG and Chile's Comptroller General are reviewing the figures, and prosecutors have opened a criminal case.
Background
Codelco is Chile's state-owned copper company and the country's largest producer. Its output figures feed national production data and staff bonuses. The investigation began after an internal audit found copper recorded as production before it met the requirements to count as finished output. In October, Codelco confirmed that some material had been recorded by more than one division.
What happened
Codelco dismissed eight people, including senior executives, after investigations into over-reported copper production uncovered new evidence of irregularities, MINING.COM reported. Those dismissed worked in mineral resources, accounting, metallurgical valuation and operational supervision, BNamericas reported.
They include Salvador general manager Patricio Viveros. Codelco said Felipe Lagno will take over as Salvador's general manager. "Transparency and integrity are completely non-negotiable principles in our state-owned companies," Mining Minister Daniel Mas said.
How the problem grew
An internal audit first found about 20,000 tonnes of copper in December 2025 production records that did not qualify as actual output. A second audit identified about 27,000 tonnes wrongly booked as commercially ready material, roughly 2% of Codelco's own-mine output in 2025.
In early October, evidence emerged that the same copper may have been counted by more than one division. That could have inflated reported output at Ministro Hales and Salvador in 2024 and 2025. Codelco said its audited 2025 financial statements do not need changes.
What it means
Codelco reported own production of 1.33 million tonnes in 2025, BNamericas said. The true figures for the last two years are still to be confirmed.
Juan Ignacio Guzmán of GEM Mining Consulting told MINING.COM the discrepancies are unlikely to affect global copper prices, which respond to actual supply. He said weaker credibility could raise Codelco's borrowing costs.
Our read
Outlook: neutral. The probe concerns how past output was recorded, not current supply, so the direct effect on copper prices is small.
What to watch
- The final quantification of overstated output from the EY and KPMG reviews.
- Any correction to Chile's official 2024 and 2025 production data.
- Progress in the criminal investigation led by prosecutor Aquiles Cubillos.
For information only, not investment advice.
Copper price in India
metalscost.com India reference price as of 2026-11-01.
Detailed analysis
Timeline
- 2026-10-30: Codelco dismisses eight staff and names Felipe Lagno to run the Salvador division.
Government Policies
Chile's mining minister backed the dismissals, and the Comptroller General is auditing the figures.
Mining Production
Codelco's 2024 and 2025 output may have been lower than reported, according to the ongoing reviews.
What could lift prices
- Lower true output at Codelco would mean Chile's supply has been weaker than reported.
- The reviews may lead to more cautious production targets.
What could weigh on prices
- The overstatement concerns past records and does not reduce current supply.
- An analyst expects little effect on global copper prices.
Country impact
| Country | Impact | Reason |
|---|---|---|
| Chile | High | The scandal affects confidence in the state miner and national output data. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Copper Mining | Negative | Investors and lenders may question Codelco's reported production. |
Who gains, who loses
- Codelco bondholders: Clearer reporting controls could restore confidence over time.
- Codelco: Lost credibility could raise its borrowing costs, an analyst said.
Other ways this could play out
- If the final review finds larger overstatements, Chile's official output data may be revised down.
- If the figures are settled quickly, the effect on Codelco's borrowing could stay limited.
Price risks
- More dismissals or charges could follow as the investigations continue.
- Revisions could show Codelco's output decline was steeper than reported.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
