Maximo Pacheco has stepped down as president of Codelco and resigned from Novandino Litio, the lithium joint venture between Codelco and SQM, creating a leadership reset at Chile’s state-owned copper producer at a time of rising debt, production scrutiny and strategic pressure in both copper and lithium.
Pacheco Exits Codelco and Novandino Litio
Pacheco handed over the Codelco chair to Bernardo Fontaine on 25 May, ending a turbulent final stretch to his four-year term. He also resigned from the board of Novandino Litio, where he had served as president of the joint venture between Codelco and SQM.
Pacheco was not required to leave Novandino, but said he chose to resign to avoid further controversy. It remains unclear who will become the next chairperson of the lithium joint venture. SQM currently has three executives on the board, while Codelco has two representatives and one vacant seat. SQM chief executive Ricardo Ramos remains vice-president of the venture.
Codelco Debt and Project Costs Face Scrutiny
Chile’s mining and economy minister Daniel Mas appointed Bernardo Fontaine to lead Codelco, citing his background in economics and public policy. The move comes as the new administration of President José Antonio Kast takes a more critical view of Codelco’s financial performance.
Codelco’s financial debt rose by 53.7% from $16.3 billion in 2022 to $25.1 billion at the end of 2025. Mas said the government’s priority is to ensure the viability and efficiency of Chile’s largest company through stricter financial management and a thorough review of project budgets.
The leadership change therefore signals more than a routine board transition. It points to closer government oversight of Codelco’s capital spending, debt structure and project execution at a time when copper output remains strategically important for Chile’s economy.
Output Reporting Error Adds to Governance Concerns
The final month of Pacheco’s tenure was also affected by irregularities in Codelco’s reported 2025 copper production. The company acknowledged that it had incorrectly classified 26,875 tonnes of material as finished copper output, including 20,000 tonnes of fine copper in oxides and 6,875 tonnes of calcium arsenite.
Codelco said the material should have been reported as work in process rather than finished production. The volume represented about 2% of total 2025 output. In response, the company dismissed one executive, disciplined others, prepared clarifying notes on production figures and said it would recalculate variable incentives linked to the misstated output.
Market Impact
○ Impacted Metals: Copper cathode, copper concentrate, fine copper in oxides, lithium brine, lithium carbonate
○ Direction: Uncertain
○ Time Horizon: Near-term to 2026
○ Affected Industries: Copper mining, lithium production, smelting, refining, battery materials, mining finance, government-owned mining companies
○ Related Price Reports: Copper Weekly Price Report, Lithium Weekly Price Report
○ Watch Item: Monitor whether Bernardo Fontaine’s leadership results in tighter capital controls, revised project budgets and clearer production reporting at Codelco.
SuperMetalPrice Commentary
The Codelco leadership change matters because it combines three sensitive issues: copper production credibility, financial leverage and control of Chile’s lithium strategy. For the copper market, the immediate pricing impact may be limited, but governance concerns at the world’s most important state-owned copper producer are commercially significant.
For Novandino Litio, the uncertainty is more strategic. The SQM-Codelco venture is central to Chile’s lithium policy direction, and Pacheco’s exit leaves the market watching how the new Codelco leadership will balance financial discipline, state control and the need to move lithium development forward.
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