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Codelco Union Resists Bonus Clawback Amid Production Restatement Crisis

A major union at Chile's state-owned Codelco pledged to oppose management efforts to recover bonuses following a significant overstatement of copper output. The production misreporting has intensified scrutiny of the mining giant's operational performance.

The disclosure revealed that Codelco's annual output fell to its lowest level since 1998, undermining the company's narrative of a mining sector rebound. The company now grapples with stagnating production and mounting debt.

In response to these operational challenges, Codelco is pursuing a consolidation strategy aimed at three of its copper mines. The integration effort is expected to generate approximately $2 billion in combined cost savings and incremental revenue as the company works to stabilize financial performance.