Chile Appoints New Codelco Chairman as Govt Orders Audit Into Production and Financial Irregularities
Chile replaces Codelco chairman and launches audit amid copper production and financial concerns at world’s largest copper producer
Chile’s government has appointed Bernardo Fontaine to replace Máximo Pacheco as chairman of Codelco, the world’s largest copper producer, marking a significant leadership change as the administration of newly inaugurated President José Antonio Kast intensifies scrutiny of the company’s debt levels, cost overruns, and production performance.
Fontaine, an economist and corporate executive, will assume the role on May 26, coinciding with the end of Pacheco’s four-year term.
The government also appointed Luz Granier and Alejandro Canut to the board, replacing Josefina Montenegro and Alejandra Wood.
Mining Minister Daniel Mas, appointed by President Kast, said the new board will be given a “special mandate” to investigate recent operational issues and oversee an external audit aimed at clarifying production discrepancies.
“Given the latest preliminary information that has come to light, our position is clear: we will launch an investigation into the case and take all necessary actions to clarify the information,” Mas said, without detailing the scope of the inquiry.
The announcement comes amid growing questions within the industry regarding Codelco’s reported production performance, including a surge recorded in December 2025 that analysts have struggled to reconcile with operational data.
Reuters previously reported concerns about whether the figures reflected fully refined copper output.
In parallel, Chilean financial newspaper Diario Financiero reported this week that nearly 20,000 metric tons of copper may have been incorrectly included in Codelco’s 2025 production figures, according to a preliminary internal audit.
Codelco has acknowledged that an internal review of production at its Chuquicamata division is ongoing, stating that it would be premature to draw conclusions while the process remains incomplete.
“It would be inappropriate to draw conclusions while the process is still ongoing,” the company said.
Minister Mas also instructed the incoming board to conduct a broader financial review, citing concerns over budget overruns and emphasizing the need for stricter financial discipline going forward.
Codelco has faced sustained operational and financial pressure in recent years as it works to restore output levels and meet its long-term production target of 1.7 million metric tons of copper by 2030, following record production lows in 2022 and 2023.
