Experts describe the manipulation of information as “extremely serious.” They say it affects the transparency, credibility and reputation of both the company and the country.
State-owned mining company Codelco dismissed a group of eight executives and professionals over irregularities in the recording and reporting of production for 2024 and
2025.
The company said in a statement that it took the action as part of internal audits and those commissioned from KPMG and EY. “Codelco’s board became aware of new information and decided to terminate the employment of a group of eight executives and professionals from the Chuquicamata, Ministro Hales and Salvador divisions, as well as headquarters.”
Although the company did not identify those dismissed by name, it specified their positions: General Manager of the Salvador Division; Corporate Manager of Mineral Resources and Development at headquarters; the Mineral Resources and Development managers of the Ministro Hales, Salvador and Chuquicamata divisions; Head of Metallurgical Valuation in the Accounting Department at headquarters; Superintendent of Smelter Operations at the Salvador Division; and Head of Quality and Metallurgical Balance at the Ministro Hales Division.
According to information gathered by this newspaper from Codelco’s public disclosures, Patricio Viveros López held the position of General Manager of the Salvador Division. In a material disclosure submitted to the Financial Market Commission (CMF), Codelco announced the appointment of Felipe Lagno Sánchez as the division’s General Manager, replacing Viveros. The new executive will take office today.
Artificial increase
On October 6, Codelco disclosed that it had received information about new inconsistencies in production figures that could have resulted in an artificial increase in the output reported by the Ministro Hales and Salvador divisions during 2024 and 2025.
“The inconsistency stems from the possibility that the same material was recorded as production by more than one division,” the company explained at the time.
In yesterday’s statement, the company said that “the measure is part of a broader process of reviewing and strengthening management, led by the administration and the board, aimed at identifying and correcting shortcomings, reinforcing control mechanisms and ensuring the integrity and reliability of corporate information.”
The irregularities in the state-owned mining company’s production records come on top of the fatal accidents that have occurred at its operations in recent months.
Reputational damage?
Álvaro Merino, Executive Director of Núcleo Minero, says that “the manipulation of information about Codelco’s production last December is an extremely serious matter, affecting the transparency, credibility and reputation of the country’s leading company. It also damages Chile’s image, given the country’s important role in global mining. Fortunately, the new management is taking the corrective measures the situation requires to ensure this does not happen again.”
Juan Carlos Guajardo, Executive Director of Plusmining, agrees with Merino. “The main damage to Codelco is to its credibility, because its production figures are used by the government, international creditors, credit rating agencies and the global copper market,” he stresses.
In Guajardo’s view, dismissing people is not enough to restore credibility. “Codelco must publish the final quantified assessment and correct the figures if necessary. It must also address the actual decline in production, which is what created the pressure to show better numbers. Transparency and a focus on profitability must be restored as the central principles of the company’s management.”
Merino adds that the new management, “led by capable and experienced people, has an enormous task ahead in overcoming the substantial backlog inherited from the previous administration.”
Source: El Mercurio