Codelco's board decided to terminate the employment of eight executives and professionals from the Chuquicamata, Ministro Hales and Salvador divisions and from headquarters, after learning of new findings from internal audits and from those commissioned from KPMG and EY on irregularities in the recording and reporting of 2024 and 2025 production. The state-owned company announced it on Wednesday, October 29, in a statement reproduced by Portal Minero and Emol.
Among those dismissed is the general manager of the Salvador Division. Codelco appointed Felipe Lagno Sánchez to replace him; he takes office this Friday, October 30. This article sums up the positions affected, how the decision was reached and what is still pending.
The eight positions Codelco dismissed
Codelco did not publish the names of the people, only their positions. According to the company's statement, they are:
| Position | Division or area |
|---|---|
| General manager | Salvador Division |
| Corporate manager of Mineral Resources and Development | Headquarters |
| Manager of Mineral Resources and Development | Ministro Hales Division |
| Manager of Mineral Resources and Development | Salvador Division |
| Manager of Mineral Resources and Development | Chuquicamata Division |
| Head of Metallurgical Valuation (Accounting Management) | Headquarters |
| Superintendent of Smelter Operations | Salvador Division |
| Head of Quality and Metallurgical Balance | Ministro Hales Division |
Source: Codelco statement via Portal Minero. The company said the decision was taken "in accordance with internal regulations and current legislation, without prejudice to other possible liabilities that may be established by the investigations under way by the competent bodies", and did not rule out legal action "to protect its interests".
What happened with Codelco's production
The case began with an internal audit that found Codelco had reported as 2025 production some 26,875 tons of copper that did not meet its internal standards for finished product. That figure was used to pay bonuses of about US$14.3 million to around 6,300 workers and executives, according to the evidence gathered by the Chamber of Deputies' investigative committee.
| Item | Figure | Source |
|---|---|---|
| Tons reported that did not meet standards (2025) | 26,875 | Internal audit cited by Ex-Ante |
| Chuquicamata oxides | 20,000 | Ex-Ante |
| Ministro Hales calcium arsenate | 6,875 | Ex-Ante |
| Corrected own production in 2025 | 1,307,570 tons | Ex-Ante |
| Bonuses paid based on the inflated figure | US$14.3 million | Ex-Ante |
| Vote on the Chamber committee's report | 11 to 0 | Radio Universidad de Chile |
Sources: Ex-Ante and Radio Universidad de Chile. What is new in this week's statement is that the external audits also cover 2024 production, not only 2025. Codelco has not said whether any tons were flagged in 2024, or how many.
Who is the new general manager of the Salvador Division
Along with the departures, Codelco informed the Financial Market Commission (CMF), through a material-event filing, of the appointment of Felipe Lagno Sánchez as general manager of the Salvador Division, replacing Patricio Viveros, according to Emol.
- Career: 14 years at Codelco, in roles covering operations, projects, development, innovation and technology.
- Previous role: corporate manager of Innovation and Technology, in the Vice Presidency of Mineral Resources, Development and Innovation.
- Earlier experience: executive roles at the Radomiro Tomic Division, EcoMetales and the Mining and Metallurgical Research Center (CIMM).
- Education: chemical civil engineer and master's in Extractive Metallurgy from the University of Chile, and a PhD from McGill University (Canada).
What the government said
The minister of Economy and Mining, Daniel Mas, backed the decision on his X account: "Transparency and probity are completely non-negotiable principles in our public companies," he wrote, adding: "Let the chips fall where they may!", according to Portal Minero. He also said the step is part of "a deep process of review and institutional strengthening".
What the congressional investigative committee recommended
The special investigative committee of the Chamber of Deputies approved its report 11-0 on October 21, before the new dismissals were known. Its main conclusions, according to Radio Universidad de Chile, are these:
- Responsibility: "It is not the workers, it is the executives who signed and authorized this overestimation," said the committee chair, Deputy Cristián Tapia.
- Reputational damage: the report says the damage to the company's reputation "must be redressed."
- More oversight: it calls for stronger supervision, transparency and internal control over production.
- Liability after leaving: it proposes that executives remain liable for up to one year after leaving their posts.
- Cochilco: it questions the Chilean Copper Commission acting as both consultant and regulator of the state company.
The report still has to be voted on by the full Chamber. This week's dismissals respond to one of its central criticisms: that responsibility lay with executives, not with the workers who received the bonuses.
What comes next in the Codelco case
| Front | Status | Source |
|---|---|---|
| KPMG and EY audits | Under way; Codelco "will continue to report in a timely manner" | Codelco statement |
| Investigations by competent bodies | Under way; the company did not say which | Codelco statement |
| Investigative committee report | Approved 11-0 in committee; sent to the floor of the Chamber | Radio Universidad de Chile |
| Legal action by Codelco | Not ruled out | Codelco statement |
| New Salvador manager | Takes office on October 30 | Emol |
Sources: Portal Minero, Emol and Radio Universidad de Chile. The case comes in a difficult year for Chilean copper: output at several operations has fallen, as seen in Escondida's 23% drop and in the analysis of record copper prices with lower output.
Frequently asked questions
Why did Codelco dismiss eight executives?
Because of new findings from internal audits and from KPMG and EY on irregularities in the recording and reporting of 2024 and 2025 production.
Which Codelco divisions are involved?
Chuquicamata, Ministro Hales, Salvador and headquarters.
How much copper was over-reported?
About 26,875 tons in 2025, according to the internal audit cited by Ex-Ante. Codelco has not released figures for 2024.
Who is the new manager of the Salvador Division?
Felipe Lagno Sánchez, a chemical civil engineer with 14 years at Codelco. He takes office on October 30, 2026.
What did the government say?
Minister Daniel Mas backed the decision and wrote "Let the chips fall where they may!".
