The nationalization of the Chilean copper industry, ("Chilenization") during the Salvador Allende government was the espoused basis for a later international boycott, which further isolated Chile from the world economy, worsening the state of political polarization. The brutal Chilean coup of 1973 was claimed to have resulted from the failure of Allende's policies. Nationalization is the act of taking assets into state ownership. ... Salvador Allende Gossens1 (July 26, 1908–September 11, 1973) was President of Chile from 1970 until his death during a violent military coup détat in 1973. ... A boycott is a refusal to buy, sell, or otherwise trade with an individual or business who is generally believed by the participants in the boycott to be doing something morally wrong. ... The Chilean coup détat of September 11, 1973 was a watershed event in the history of Chile and the Cold War. ...

Copper mining has long been the mainstay of Chilean exports. At present, it accounts for almost a third of all foreign trade, down from a peak of almost 75%. Successive Chilean governments have characterized copper revenues as “Chile’s salary.” Thus for a long time, it was a sore point to Chileans that such industry was in the hands of a few multinational corporations, especially those from the United States. General Name, Symbol, Number copper, Cu, 29 Chemical series transition metals Group, Period, Block 11 , 4, d Density, Hardness 8920 kg/m3, 3. ... The El Chino Mine located near Silver City, New Mexico is an open-pit copper mine Mining is the extraction of valuable minerals or other geological materials from the earth, usually (but not always) from an ore body, vein, or (coal) seam. ... A multinational corporation (MNC) or multinational enterprise (MNE) or transnational corporation (TNC) is one that spans multiple nations; these corporations are often very large. ...

This article focuses on the period starting in the early 1960s in which the Chilean government acquired total control of the copper industry. This article provides extensive lists of events and significant personalities of the 1960s. ... General Name, Symbol, Number copper, Cu, 29 Chemical series transition metals Group, Period, Block 11 , 4, d Density, Hardness 8920 kg/m3, 3. ...

Background

Copper has been mined since colonial times in the area between central Chile and southern Peru, but it never acquired the importance of other mining exports such as saltpeter or silver until the beginning of the XX century. Due to the introduction of artificial nitrates following World War I, the world market for saltpeter, then Chile’s main export, collapsed. The copper industry then started rapidly acquiring an increasingly important role for Chile’s economy. It was during that period that copper became known as “Chile’s salary”. The chemical compound potassium nitrate is a naturally occurring mineral source of nitrogen. ... General Name, Symbol, Number silver, Ag, 47 Chemical series Transition metals Group, Period, Block 11, 5, d Density, Hardness 10490 kg/m3, 2. ... (19th century - 20th century - 21st century - more centuries) Decades: 1900s 1910s 1920s 1930s 1940s 1950s 1960s 1970s 1980s 1990s The 20th century lasted from 1901 to 2000 in the Gregorian calendar (often from (1900 to 1999 in common usage). ... Ypres, 1917, in the vicinity of the Battle of Passchendaele. ...

The first foreign-owned copper mine was open in 1904, but the beginning of the modern exploitation began in 1912. In that year, Guggenheim Bros. acquired the control over the Chuquicamata fields, and created the Chile Exploration Company. Construction work started on February, 1913, and the new mine started production in March, 1915. 1904 is a leap year starting on a Friday (link will take you to calendar). ... 1912 is a leap year starting on Monday. ... The Guggenheim family refers to a number of descendents of Meyer Guggenheim who were known for their successes in mining and smelting, and later for their philanthropy in diverse areas such as modern art and aviation. ... Chuquicamata, or, Chuqui, as it is commonly called, is the largest open pit copper mine in the world. ... February is the second month of the year in the Gregorian Calendar. ... 1913 is a common year starting on Wednesday. ... March is the third month of the year in the Gregorian Calendar and one of seven Gregorian months with the length of 31 days. ... 1915 was a common year starting on Friday (see link for calendar). ...

Production climbed steadily from 45,000 metric tons per year initially to 51,000 in 1918, 100,000 in 1923, and 200,000 in 1937. Today, Chuquicamata is the largest mine in the world, and the largest man-made hole in the planet. Mine can refer to a number of things: Mines are tunnels used in mining for extraction of resources. ...

In 1923, Guggenheim Bros. transferred the property of the mines to the Anaconda Copper Mining Company. 1923 was a common year starting on Monday (link will take you to calendar). ... The Anaconda Copper Mine was a large copper mine in Butte. ...

Principal mines at the beginning of the nationalization

By the late 1950s, the three principal copper mines in Chile were: Chuquicamata, El Salvador, and El Teniente. Chuquicamata and El Salvador were owned by the Anaconda Copper Company and El Teniente was owned by the Kennecott Copper Corporation. The La Exotica mine was added to these big mines in 1966. Millennia: 1st millennium - 2nd millennium - 3rd millennium // Events and trends The 1950s in Western society was marked with a sharp rise in the economy for the first time in almost 30 years and return to the 1920s-type consumer society built on credit and boom-times, as well as the... Chuquicamata, or, Chuqui, as it is commonly called, is the largest open pit copper mine in the world. ... The Anaconda Copper Mine was a large copper mine in Butte. ... Kennecott Copper Corporation had its start when Enos A. Wall realized the potential of copper deposits in Bingham Canyon in Utah in 1887 and acquired claims to the land. ... 1966 was a common year starting on Saturday (link goes to calendar) // Events January January 1 - In a coup, Colonel Jean-Bédel Bokassa ousts president David Dacko and takes over the Central African Republic. ...

These large mines were mainly self-contained and self-sustaining settlements with their own cities to house their workers, their own water and electrical plants, their own schools, stores, railways, and even in certain cases their own police forces.

First stage of nationalization

The first indication of the growing frustration over the copper revenues was indicated by the law 11.828 of May 5, 1955 (also known as the law for “ a new deal”). That law created the "Copper Office" (Departamento del Cobre), which had the primary objective of dealing with these multinational corporations that were fast becoming states-within-the-state. May 5 is the 125th day of the year in the Gregorian Calendar (126th in leap years). ... 1955 is a common year starting on Saturday of the Gregorian calendar. ...

During the administration of President Eduardo Frei Montalva, Congress sanctioned law 16.425 on January 25, 1966 and transformed the "Copper Office" into the "Copper Corporation of Chile" (Codelco). The principal objective was to increase state control over the copper industry. It also authorized the government to participate directly and invest in new and existing operations. Eduardo Frei Montalva (1911 – 1982) was the president of Chile from 1964 to 1970. ... January 25 is the 25th day of the year in the Gregorian Calendar. ... 1966 was a common year starting on Saturday (link goes to calendar) // Events January January 1 - In a coup, Colonel Jean-Bédel Bokassa ousts president David Dacko and takes over the Central African Republic. ... Logo Codelco (full name in Spanish: Corporación Nacional del Cobre, Chile) is a Chilean 100 percent state-owned company and the largest copper producer in the world. ...

Based on this law, the government invested in the newly discovered La Exotica mine on February 10, 1967. The La Exotica mine was jointly owned and developed by the Anaconda Copper Company (75%) and the Chilean government (25%). More importantly, in that same year, the Chilean government acquired the majority of shares (51%) of the El Teniente mine, with the remaining 49% left in the hands of the Kennecott Copper Corporation. February 10 is the 41st day of the year in the Gregorian Calendar. ... 1967 was a common year starting on Sunday of the Gregorian calendar. ... The Anaconda Copper Mine was a large copper mine in Butte. ... Kennecott Copper Corporation had its start when Enos A. Wall realized the potential of copper deposits in Bingham Canyon in Utah in 1887 and acquired claims to the land. ...

Second stage of nationalization

On June 26, 1969, President Eduardo Frei Montalva signed an agreement with the Anaconda Copper Company (which was afterwards ratified by Congress). In this agreement, the government acquired the 51% of the remaining two major mines (Chuquicamata and El Salvador) and also the right for Codelco to consolidate the international sales of Chilean copper. June 26 is the 177th day of the year (178th in leap years) in the Gregorian Calendar, with 188 days remaining. ... 1969 was a common year starting on Wednesday (the link is to a full 1969 calendar). ... Eduardo Frei Montalva (1911 – 1982) was the president of Chile from 1964 to 1970. ... The Anaconda Copper Mine was a large copper mine in Butte. ... Chuquicamata, or, Chuqui, as it is commonly called, is the largest open pit copper mine in the world. ... Logo Codelco (full name in Spanish: Corporación Nacional del Cobre, Chile) is a Chilean 100 percent state-owned company and the largest copper producer in the world. ...

This process was known as "negotiated nationalization", and was designed to avoid a conflict with international investors (and ultimately with the United States), and to allow for the acquisition of the technical, financial and marketing knowledge of the multinationals. A similar process was used to acquire a dominant ownership over the rest of the copper industry.

In the agreement, it was established that the Chilean government could buy within the next 13 years (counting from 1970) the remaining 49% of the foreign ownership from the multinational corporations, but only after having paid at least 60% of the current debt due from the purchase of the original 51%. It also fixed a clear formula for the valuation of the assets to be bought, for the liquidation of profits, for the increase of direct investment in new works, and related issues.

Third stage of nationalization

The process of "negotiated nationalization" met with vociferous critics from the leftist political parties, and from a section of the President’s own Christian Democratic Party. The idea was accused of bowing to American Imperialism, being too slow and too expensive. Politics of Chile Political parties in Chile Elections in Chile: President: 1925 - 1927 - 1931 - 1932 - 1938 - 1941 - 1946 - 1952 - 1958 - 1964 - 1970 - 1989 - 1993 - 1999 - 2005 The Christian Democratic Party of Chile (Partido Demócrata Cristiano de Chile) is a political party in Chile and governs as part of the...

In the 1970 presidential election, the outright nationalization without compensation (known as the Chilenization of copper) became one of the basic campaign issues. Two out of the three presidential candidates incorporated the idea into their political platforms, while the third opted for a faster version of the "negotiated nationalization".

After Salvador Allende won the election, he promised to deal with the issue head-on. In fact, at the beginning of 1971, he sent Congress a project for a constitutional amendment that would allow him to nationalize outright all mines, and to transfer all present and future copper fields to the state. Congress passed this amendment on July 11, 1971 by a unanimous vote, and the event was celebrated as the day of “national dignity”. Based on it, on July 16, 1971 the law 17.450 was promulgated, and became effective immediately. Salvador Allende Gossens1 (July 26, 1908–September 11, 1973) was President of Chile from 1970 until his death during a violent military coup détat in 1973. ... 1971 is a common year starting on Friday (click for link to calendar). ... July 11 is the 192nd day (193rd in leap years) of the year in the Gregorian Calendar, with 173 days remaining. ... 1971 is a common year starting on Friday (click for link to calendar). ... July 16 is the 197th day (198th in leap years) of the year in the Gregorian Calendar, with 168 days remaining. ... 1971 is a common year starting on Friday (click for link to calendar). ...

Originally, the expropriation was based on the book value of the properties. Nevertheless, the Allende administration introduced the idea of "excessive profits" into the calculation of indemnization for the mines. This idea was based on the concept that the multinational corporations had reaped profits far in excess of what was considered "normal business practice". Salvador Allende Gossens1 (July 26, 1908–September 11, 1973) was President of Chile from 1970 until his death during a violent military coup détat in 1973. ...

In principle, there was complete agreement about the process of nationalization of the mines among all political parties represented in the Chilean Congress, as indicated by the unanimous vote that approved law 17.450. When it came down to the particulars, however, there was much concern about the political use that the Allende administration would make of it. Even so, the bigger concern was for the expected reaction of the US Government. Salvador Allende Gossens1 (July 26, 1908–September 11, 1973) was President of Chile from 1970 until his death during a violent military coup détat in 1973. ... ...

In October of 1971, the General Comptroller's office handed down the calculations of the indemnizations due, in line with the parameters established by the Constitutional Amendment. According to this document, the American companies were not to receive any compensation for the Chuquicamata, El Salvador and El Teniente mines, and only a very small one for the rest of their properties. The US government reaction was immediate. The US Department of State declared: "This serious infraction to international practice can cause damage not only to Chile, but to all other developing countries". October is the tenth month of the year in the Gregorian Calendar and one of seven Gregorian months with the length of 31 days. ... 1971 is a common year starting on Friday (click for link to calendar). ... Chuquicamata, or, Chuqui, as it is commonly called, is the largest open pit copper mine in the world. ... The United States Department of State, often referred to as the State Department, is the Cabinet-level foreign affairs agency of the United States government, equivalent to foreign ministries in other countries. ...