Inconvenience: politicization of Codelco

EditorialIt is regrettable that opposition sectors seek to frame a series of diagnoses about Codelco as attempts at a covert privatization, which could delay the changes the company urgently requires. Facade and Logo of the Codelco corporate building in Santiago. DIEGO MARTIN/ATON CHILE CommentsThe administration of Codelco has highlighted the problems facing the company and the need to undertake a series of changes to put it in order. The company has been hit by the findings that detected inflated production figures in 2024 and 2025, which has prompted the opening of forensic audits, criminal complaints, and the removal of several senior executives. At the extraordinary shareholders' meeting held last week, it was announced that, according to the information gathered so far, total production for 2024 would have been falsely increased by 24 thousand tons, while in 2025 the net effect exceeded 18 thousand tons. Codelco has also been affected by lower production figures in a context of higher costs. In an interview with this outlet, the chairman of the board, Bernardo Fontaine, dismissed the forecasts of his predecessor, Máximo Pacheco, who predicted production of around 1.5 million tons for this year, while it was estimated that by the end of the decade it would reach 1.7 million tons. Fontaine stated that for this year and next, production will be around 1.2 million tons, and then it will attempt to reach around 1.3 million tons annually. In this regard, the executive pointed out that, despite the fact that Codelco invested US$32 billion over the last eight years, production nevertheless fell and operating costs grew 42% in four years, which poses significant challenges. One would have expected that, in light of these facts, there would be a shared view across all sectors on the need to restore production at Codelco, restructure internal control mechanisms, rationalize costs, reduce its level of indebtedness, and focus investments on the most profitable projects. However, from the opposition a campaign has begun to place these figures and diagnoses within a framing of an open purpose of discrediting the company, presenting it as a company in crisis in order to facilitate the start of a covert privatization process at a low price. In this regard, the public statement by the Socialist Party is eloquent, accusing the existence of a "communications spectacle" and that a familiar script is being repeated: that of the "bankrupt state" and the "empty till," for which purpose the "alleged irregularities" at Codelco are being used. The various opposition senator blocs spoke in a similar vein, which seems to be an anticipation that any debate about changes at the company will be tinged by politicization, relegating technical arguments and the interest of Codelco to a secondary place. Although it would be difficult to argue that Codelco is a company that is out of control, there is no doubt that it faces objective structural problems that require urgent attention, without which it will hardly be possible to fulfill the goal of providing the greatest possible profitability to its owners, in this case all Chileans. Attempting to immunize the company from all criticism, and evading changes under the pretext of a "covert privatization," will only harm the interests of the country. More about:OppositionProductionTargetsStructural problemsReform