Chilean regional budget cuts and Codelco production investigation

The O’Higgins region in Chile faces a 20.2% reduction in its investment budget for 2027, amounting to over 18 billion pesos. This represents the largest budget cut in the country, despite the region maintaining high execution rates, averaging nearly 100% over the last four years. Local officials noted that these funds were intended for critical infrastructure and services, including ambulances, patient transport vehicles, hospital conservation, and sanitation projects.

Separately, a special investigative commission of the Chilean Chamber of Deputies has unanimously approved a report regarding the overestimation of Codelco’s copper production in 2025. The report identifies company executives as responsible for the misreporting of nearly 27,000 tons of copper. The commission highlighted the damage to the state mining company’s reputation and called for strengthened oversight, transparency, and internal controls. Proposals include extending executive accountability for one year after leaving the board and addressing the conflicting roles of Cochilco as both a consultant and a supervisor.