Chile appointed economist Bernardo Fontaine as chairperson of state-run Codelco, replacing Maximo Pacheco. Codelco remains the world’s largest copper producer. The leadership change follows intense criticism over falling production, budget overruns, and rising debt.
The new board takes effect on May 26. Mining Minister Daniel Mas issued a special mandate for an external audit and investigation into operational failures. Codelco reported a 7.5% production decline in the first quarter of 2026. Chile’s total copper output dropped 5.8% during the same period.
This overhaul creates uncertainty in a copper market currently experiencing record-high prices. Investors are monitoring whether new management can reverse declines to meet surging demand from the energy transition and AI sectors.