Copper

Abstract

For a long time, copper in Chile has been seen as different from other economic activities and export products. The law nationalising it in 1971 was supported by all political sectors, including the right-wing National Party. The military government, despite its attempts at privatising practically all the state enterprises, the financial sector, health and education, and so on, stopped short of privatising the nationalised copper mines. Since the current status of copper was defined by a ‘constitutional law’ (ley orgánica), which is considered part of the 1980 Constitution, privatisation of the mines would require a constitutional reform, and therefore a plebiscite. In spite of this, the copper unions threatened a national strike when the Pinochet government suggested in late 1989 the possibility (which was never carried out) that the individual mines should be organised as autonomous enterprises. This was interpreted by the opposition as an attempt leading towards eventual privatisation.