Chilean state-owned Codelco fired a senior executive following an internal audit. The audit confirmed the company overstated its 2025 copper production.
Officials improperly classified 26,875 tonnes of copper from the Chuquicamata and Ministro Hales divisions. This volume represents approximately 2% of Codelco's annual output. The company mislabeled work-in-progress materials as finished products.
Codelco referred the matter to public prosecutors to investigate potential fraud. The scandal complicates a proposed $2 billion integration of the company's northern mines.
Copper futures fell 1% on Thursday. Prices reached $6.25 per pound. Easing geopolitical premiums from U.S.-Iran peace talks and hawkish Federal Reserve expectations pressured the market.