INTRODUCTION

One country stands pre-eminent as the world’s great producer of copper, and that is the United States, whose production was 60 per cent. of the total world output in 1917. Iron, coal, oil and copper are fundamental raw materials of which the United States produces more than any other country, but only in copper and in oil is the output greater than that of all other countries together. In copper this has been true since the early nineties. American copper, English gold, Russian platinum and Chilean nitrate are common phrases in world markets; as common as the commodities themselves.

No other country produces or has for many years ever produced one-sixth as much copper as the United States. While the world output of copper has been increasing, at the average rate of 5 per cent. annually for 10 years up to 1914 and three times as rapidly since then, the relative importance of the United States has not declined. On the contrary it has increased at a greater rate than the total world output. Certain individual countries, it is true, have since 1914 increased their output faster than the United States, but there is no indication that the United States will lose its present dominating leadership.

Because of the magnitude of the copper industry of the United States, great refining plants have been built up here. American capital also has gone largely into Canadian, Mexican and South American copper properties. As a result the United States now imports nearly one-third as much copper as is produced (18 per cent. of the total world output in 1917). Thus American capital controls, through refining in addition to ownership of mines, 78 per cent. of the world’s copper production. This control should also be equally strong as regards selling. Obviously, a large part of our domestic, and, as regards statistics, all the imported copper, is exported in finished form—copper ingots and bars, brass, electrical machinery, etc. But as regards selling and even mine ownership in Mexico and South America, there is considerable German control; although the important mines of Canada, Mexico and South America are owned by either American, British or French interests, except those owned by local foreign capital.

Table 35.—Geographical and Financial Control of the World’s Copper Mines
(Production in Metric Tons)

Percentage
of
World total		Average
1916-1917
output
of copper		Country of originEstimated
capacity
output
of copper		Per-
centage
of
world
total		Owned
by
U. S.
capital		Owned
by
British
capital		Owned
by
German
capital		Owned
by
French
capital		Owned
by
Japanese
capital		Owned by
local capital in
producing countries
Western Hemisphere
59.2  868,903United States  928,000 57.5  899,000 29,000
 3.3   49,168Canada   58,000  3.6   28,000 30,000
 3.4   49,478Mexico   65,000  4.0   49,000Idle  2,500plus13,500
 1.0   14,000Cuba   10,000  0.6......  2,000plus... ...8,000
 0.2    2,000Venezuela    2,000  0.1...  2,000
 4.8   70,000Chile  110,000  6.8   86,000  2,500  4,500plus 9,500[105]...7,500
 3.    43,620Peru   45,000  2.8   45,000
 0.4    6,000Bolivia   12,000  0.8    6,000... ...  6,000
75.41,103,169Total Western Hemisphere1,230,000 76.21,113,000 63,500  9,000 29,000 ...15,500
Eastern Hemisphere
 3.2   47,500Africa   58,000  3.6... 58,000[105]... ...
 2.5   36,550Australia   43,000  2.7... 43,000
 7.9  112,900Japan  125,000  7.7...... ... ... 125,000
 2.9   42,000Spain and Portugal   42,000  2.6... 40,000 ... ... ...2,000
 1.3   18,500Russia (estimated)   18,000  1.1...... 18,000(?)
 4.8   71,000Central Powers (estimated)   71,000  4.4...... 71,000
 1.4   19,000Norway   19,000  1.2... 10,000 ... ... ...9,000
 0.1    1,000Sweden    1,000  0.1...... ... ... ...1,000
 0.4    6,250Other countries    6,250  0.4...    250 ...  2,000 ...(3,000) (Italy)
(1,000) (China)
24.6  354,700Total Eastern Hemisphere  383,250 23.8 31,500
World Total1,456,869 1,613,250100  1,113,000212,750 98,000 31,000 125,000
100% 69[106]13.3[106]6.1[106]1.9[106]7.7[106]2.0%, divided as follows: Cuba, 0.5; Spain, 0.1; Norway, 0.6; Sweden, 0.05; Chile, 0.5; China, 0.05; Italy, 0.2

[105] Includes Belgian capital.

[106] Percentage of ownership.

Table 36.—Business Control of the World’s Copper Mines
All figures metric tons

Country
of
origin		Estimated
capacity
output of
refined
copper		Refined
in
the U. S.		Refined
in
British
Dominions		Refined
in
Germany		Refined
in
France		Refined
in
Japan		Refined
in
other
countries		Formerly
sold by
German
houses
Western Hemisphere
United States  928,000   928,000...............( 73,000)
Canada   58,000    28,000 30,000............( 21,000)
Mexico   65,000    52,000......13,000......(  2,500)
Cuba   10,000    10,000...............( 10,000)
Venezuela    2,000     2,000
Chile  110,000    43,000  2,500... 9,500...55,000( 20,000)
Peru   45,000    45,000
Bolivia   12,000     6,000...... 6,000
Total Western Hemisphere1,230,000 1,114,000 32,500     028,500      055,000(134,500)
Percent of total76.2%[107] 692...1.8...3.4
(Chili copper)
(U. S. owned)		(8¹⁄₄%)
Eastern Hemisphere
(or in Belgium)
Africa   58,000     5,000 53,000............(  5,000)
Australia   43,000 ... 43,000............( 43,000)
Japan  125,000     3,000.........122,000
Spain and Portugal (estimated)   42,000     2,000 35,000... 5,000......
Russia (estimated)   18,000 ..................?
Central Powers   71,000?......71,000......18,000?
Norway   19,000 ... 19,000............?
Sweden    1,000 ...  1,000............?
Other Countries    6,250 ...    250... 2,000... 3,000
(Italy)
 1,000
(China)
Total Eastern Hemisphere  383,250    10,000151,25071,000 7,000122,00022,000( 48,000)
Percentage of total23.8   .7 9.34.4 .47.61.4(3%)
Total percentage100% 69.711.34.42.27.64.8(11¹⁄₄%)

[107] The United States controls the sale of substantially all this copper.

Table 37.—Future Importance of Present Copper-producing Countries as Indicated by Known Reserves of Copper Ore, and Capital Controlling These Reserves

Producing
country		Estimated
capacity
output
of copper
(metric tons)		Percentage
of world total		Developed reserves in terms of
years’ life at capacity output		Exten-
sion[108]		Percentage
of
total
reserves
of world
Owned by
U. S.
capital		Owned by
British
capital		Owned by
German
capital		Owned by
French
capital		Owned by
Japanese
capital		Owned by
local capital
in producing
countries
W. Hemisphere:
United States  928,000 57.512.4yrs.12.4 yrs.............  713  34.
Canada   58,000  3.615   20 ............   63.33.
Mexico   65,000  4.05   largelarge6 yrs.......   20.81.15
Cuba and Venezuela   12,000  0.7... ...3 yrs.......3 yrs.    2.10.10
Chile  110,000  6.8150   3 ?5 ...consider-
able		  795.837.9[109]
Peru   45,000  2.84   ............    11.20.55
Bolivia   12,000  0.8... ......4  ......    2.80.10
Total1,230,000 76.2... ...............1,609.0
Percentage total reserves... 76.873.6 2.40.10.4... 0.3 ...76.8
Eastern Hemisphere:
Africa   58,000  3.6... 66[110]............  237.611.3
Australia   43,000  2.7... 7.2............   20  0.95
Japan  125,000  7.7... .........6  ...   46.22.2
Spain and Portugal   42,000  2.6... 50 .........50     130  6.2
Russia   18,000  1.1... 18(?)18(?)......18      19.80.95
Central Powers   71,000  4.4... ...?......?   20  0.95
Norway   19,000  1.2... 10 .........10      12  0.55
Sweden    1,000  0.1... ............10       1  0.04
Other countries    6,250  0.4... ............?    1.40.06
Total  383,250 23.8... ...............  488.0
Percentage total reserves... 23.2... 18.40.95...2.2 1.65...23.2
World total1,613,250100  ... ...............2,097.0
Percentage of world total reserves......73.6 20.81.050.42.2 1.95...100

[108] Extension is the product of “Percentage of World Total” and “Developed Reserves in Terms of Years Life,” and gives total ultimate relative importance of different countries.

[109] In so far as it affects production this high figure must be discounted because of the large reserves being compact, the distance from market and the unfavorable mining conditions of a thinly settled country.

[110] Katanga equals ⁶⁵⁄₆₆ of this.

Note.—Not much weight is to be attached to figures showing more than 10 years of life. Total full future value over long number of years is greatly reduced when expressed in terms of present value on normal interest discount. All countries with reserves good for ten or more years may be considered as being on an equal footing so far as copper resources are concerned. But, large reserves may mean expanding production (as in Chile and Africa) and be important on that account and only on that account.

To weigh ore reserves they have been taken in toto, but Spain would be no worse off as compared to the United States if her reserves were put at 10 years instead of at 50 (as calculated above). Her reserves happen to be of a kind easily blocked out, but her output is stationary.

Plate VIII.—Geographical distribution of the principal copper-producing districts of the world. By F. W. Paine.

[Table 35] shows the different copper-producing countries of the world and the chief features of financial control of the producing mines. [Table 36] shows the chief features of business control (refining and selling control) as distinct from control by mine ownership. In both tables a forecast for future conditions is made by using estimates of 1918 and 1919 production. These figures are followed out to the different forms of control. The actual outputs of 1916-17 are given as a reference and check. [Table 37] shows reserves, largely those of producing mines. [Plate VIII] shows the location of the principal copper deposits of the world.