Chile Panel Faults Codelco on 27,000 Tonnes

CHILE · MINING

A Chilean parliamentary commission unanimously approved a report holding the executives of the state copper giant Codelco responsible for overstating its 2025 production by almost 27,000 tonnes of copper, El Periodista and La Razón reported on 23 October 2026. Codelco is among the world’s largest copper miners, so the finding matters to US buyers and traders who rely on its reported output.

On 26 October the television channel T13 reported that the 180-page text names former chairman Máximo Pacheco and the then chief executive Rubén Alvarado as having known the true production levels from June 2025. Those points come from T13’s reading of the report alone, and Pacheco, who left the chairmanship in May, is not reported to have been formally charged.

What the Commission Found

The special investigative commission of the Chamber of Deputies, known as CEI 2, approved its conclusions report unanimously, according to El Periodista and La Razón. The report calls the overstatement a fact of the greatest gravity, holds Codelco’s executives responsible and says the damage to the company’s reputation must be repaired.

Its recommendations include stronger oversight, transparency and internal-control rules at Codelco, and keeping executives liable for one year after they leave the board. It also asks for a clearer role for Cochilco, the state copper commission, because the report calls its dual job as both adviser and overseer incompatible.

Portal Minero reported on 26 October that the report now goes to the floor of the Chamber, which will vote on it in a future session. The commission’s chairman, Atacama deputy Cristián Tapia, had told Diario Financiero on 8 October that a criminal complaint was the most likely outcome.

What T13 Says About Pacheco

T13 says it obtained the 180-page final report, which found substantive inconsistencies in Codelco’s 2025 production figures after 13 sessions. The channel says the text states that both the chief executive and the chairman of the board already knew the true production levels from June 2025.

The report cites effective pressure to improve the 2025 closing figures compared with 2024, T13 says, and it reports Tapia as saying that senior executives, starting with Pacheco, knew about the roughly 27,000 tonnes. T13 adds that the material was counted wrongly, was not sold and remains in stock in two divisions.

The text also describes a failure of the control chain across about seven units, including mineral resources, metallurgical balance, accounting and sales, T13 says. It says the commission found the extra tonnes did affect bonuses but did not find enough evidence that they were added to earn them.

Where the Criminal Case Stands

Prosecutor Aquiles Cubillos of the O’Higgins region has led an investigation since May into possible falsification of a public instrument, disloyal administration, fraud against the state and embezzlement of public funds, Diario Financiero reported on 27 May. Cubillos told the paper he had ruled out none of those offenses and that he would eventually summon Pacheco.

T13 says unnamed sources told it that Pacheco has the status of imputado in the case and will be called to testify in that capacity. It quotes Tapia as saying a criminal complaint against the people the commission has identified is the most likely next step, and that the comptroller’s final report will be ready in December.

Pacheco’s lawyer, Juan Domingo Acosta, said in May that his client was willing to cooperate, Diario Financiero reported. T13’s report carries no direct statement from Codelco, and the reports reviewed describe no formal charge against Pacheco or Alvarado.

Codelco’s Own Review

Codelco said on 6 October that its board had been told of new inconsistencies in 2024 and 2025 production figures, with the same material possibly recorded as output by more than one division. The company named the Ministro Hales and Salvador divisions, gave no tonnage and handed the information to prosecutors, and on 14 October its board agreed to hold an extraordinary shareholders’ meeting on 5 November at the request of the finance and mining ministers.

The board commissioned EY to audit the possible double counting, and KPMG continues to review the output of every division for 2024 and 2025, the release says. Chief executive Jorge Gómez promised to investigate any irregularity thoroughly, and chairman Bernardo Fontaine called the work part of a strategy of probity.

Diario Financiero reported in May that correcting the 27,000 tonnes does not require restating Codelco’s 2025 financial statements but does change production volumes. It put the incentives affected at about US$14.3 million for 6,322 workers and executives, and the earlier forensic audit that found the 2025 overstatement linked the tonnes to Chuquicamata and Ministro Hales.

What It Means for You

Codelco sells copper to buyers around the world, and its reported output is one of the data points that traders, importers and investors in the US use to judge global supply. T13 says the disputed material was not sold and remains in stock, so the dispute is about counting and not about metal delivered to customers.

US readers following Chile should watch the Chamber floor vote, the EY audit results and any criminal complaint, since each can change what Codelco has to restate. More Chile mining coverage tracks how the Kast government is resetting the state copper giant, which now has Fontaine as chairman after his appointment in May.

What Is Not Known

The full 180-page text was not available for direct reading, so the claims about Pacheco and Alvarado rest on T13’s account of the document. T13’s report carries no response from Codelco, and no formal charge against either man is reported.

The date of the Chamber floor vote has not been announced, and a criminal complaint has been called the most likely step but has not been filed, while the December date for the comptroller’s report comes from one outlet. The size of the new double-counting case at Ministro Hales and Salvador is also unknown, since Codelco gave no tonnage.

Frequently Asked Questions

What did Chile’s lawmakers find about Codelco?

A Chamber of Deputies commission unanimously approved a report holding Codelco’s executives responsible for overstating 2025 output by almost 27,000 tonnes of copper. The Chamber floor has yet to vote on it.

Is Máximo Pacheco still Codelco’s chairman?

No, his term as chairman ended in May 2026, and Bernardo Fontaine now chairs the board. T13 says Pacheco is under investigation in the output case, citing unnamed sources, and no formal charge against him is reported.

Does the overstatement mean copper is missing?

T13 says the disputed material was not sold and remains in stock in two divisions, so the issue is how tonnes were counted. Codelco says it is still investigating the origin and effects of the figures.

Who is investigating Codelco’s output figures?

A Chamber of Deputies commission, prosecutor Aquiles Cubillos in the O’Higgins region and the state comptroller are examining the case, and Codelco has hired EY for an independent audit. KPMG continues to review the output of each division.

Why does Codelco matter for US copper buyers?

Codelco is among the world’s largest copper producers, and its output figures help shape expectations for global supply. Doubts about those figures can change how traders and importers read the market.

Sources: Codelco press release, 6 October 2026; T13 Reportajes, 26 October 2026; El Periodista, 23 October 2026; La Razón, 23 October 2026; Portal Minero, 26 October 2026; Diario Financiero, 8 October 2026; Diario Financiero, 27 May 2026; Emol, 7 October 2026.

Editorial responsibility: Matthias Camenzind, Editor-in-Chief · Editorial standards · Report an error