Codelco Accounting Scandal Deepens as Eight More Employees Are Dismissed Over Copper Production Irregularities
Santiago, Chile: Chile’s state-owned copper giant Codelco has dismissed eight additional executives and senior employees following new findings in an expanding investigation into irregularities in copper production accounting for 2024 and 2025.
The latest dismissals involve personnel from the company’s Chuquicamata, Ministro Hales and Salvador mining divisions, as well as its corporate headquarters. The decision was announced on October 29, 2026, following internal reviews and external audits commissioned from KPMG and Ernst & Young (EY).
Among those dismissed is Patricio Viveros, general manager of the Salvador division. The other employees include managers responsible for mineral resources and development, a metallurgical valuation head, Salvador’s smelter operations superintendent and the head of quality and metallurgical balance at Ministro Hales.
The investigation centres on discrepancies in reported copper production, including allegations that the same material may have been counted as production by multiple divisions, potentially inflating Codelco’s reported output during 2024 and 2025.
Earlier reviews identified approximately 20,000 tonnes of copper incorrectly included in production records for December 2025. A subsequent audit reportedly uncovered another 27,000 tonnes that had been improperly classified as commercially ready material.
The findings have raised concerns about the company’s internal accounting procedures, production verification systems and performance-linked employee incentives.
Codelco has commissioned EY to investigate the newly identified discrepancies, while KPMG continues its broader review of production records across the company’s divisions. Chile’s Comptroller General and the Public Prosecutor’s Office are also involved in examining the case.
The company said the latest dismissals form part of a broader effort to strengthen corporate governance, improve internal controls and ensure the accuracy and reliability of its production information. It also stressed that further responsibilities could emerge as investigations continue.
Meanwhile, Codelco has appointed Felipe Lagno as the new general manager of its Salvador division, replacing Patricio Viveros.
The scandal has intensified scrutiny of the world’s largest copper producer, particularly as the company faces challenges related to declining ore grades, operational costs and production recovery.
The findings could also affect investor and lender confidence in Codelco’s corporate governance and reporting practices. However, the full financial impact of the discrepancies and the extent of individual responsibility remain subject to ongoing investigations.
Codelco has reiterated its commitment to transparency and accountability, stating that it will continue cooperating with the relevant authorities and communicate further developments as the investigations progress.