There are five important Chilean mines controlled by French or British capital. See [Table 42]. All are vein mines with no considerable tonnage of developed ore reserves, and the combined output is nearly 50,000,000 pounds of copper a year (a considerable part being from custom ore shipped by small mines) in the form of blister or matte. This production is normally shipped to France or England.
The American Metal Co. and L. Vogelstein, representing German capital, are believed to control, through selling and refining, much of the output of the French, British and Belgian mines. These concerns also own custom smelters in Chile and probably have interests in many mining properties there. The big business in Chilean ores shipped into the United States is done by these concerns, although the American Smelting, Refining & Mining Co. is also an important factor. These ores come from many small mines, although there are a few important ore shippers, one of which is British owned. Most of the mines are ostensibly Chilean owned, but much of the financing, marketing of products, etc., is done by American houses with German affiliations.
It seems that Chile may soon become the second largest copper producer of the world. American capital has led in the development of the Chilean deposits, as American interests have discovered and furnished funds for the equipment of the two leading producers, and the third most important ore body is American owned. This is the more remarkable in light of the fact that American capital has so far been conspicuous by its absence in the development of the other important industries of Chile. Were it not for the present difficulties of building up plant facilities, due to shipping shortage, high cost of equipment, etc., the American-owned copper mines would today be still larger producers than they are. However, American capital now completely controls about seven-eighths of the total output. Substantially all the copper produced in Chile is shipped to the United States. The Chili Copper Co. produces in Chile a refined electrolytic copper, and this is the only finished refined copper produced in South America. Braden can produce a grade of copper that does not compete with electrolytic but is refined enough to go directly to the consumer.
PERU
Peru is one of the important copper-producing countries of the world. The chief mines are at extreme altitudes, however, and their character and location is such as to indicate that production will probably remain stationary or at least not show any important increases in the next few years. There are two important districts: Cerro de Pasco (elevation, 14,300 feet) and Morococha (elevation 13,700 feet).
The chief mines of these districts are now controlled by American capital and may be classed with group 2 of [Table 38]. The Morococha district was formerly English controlled, but the majority interests have lately been acquired by the Cerro de Pasco Copper Co. (American). The ores in both districts are exceedingly rich and the properties are well fortified with reserves. Developed reserves are adequate to insure four years’ production, and everything indicates that the mines are working extensive and persistent ore deposits. Blister copper is shipped to the American Smelting & Refining Co. in New York for treatment and marketing. Both mines have fully equipped plants, including smelters.
At the plant of Backus & Johnson Co., Morococha, some custom ore and matte from locally owned mines is treated. Among these mines are those of J. Galliver, producing 600 tons matte a year. Backus & Johnson also have a smelter and mines in the Casapalca district. The Sayapullo Syndicate (English) is working the Sayapullo mine under option from the Peruvian owners. Some of this matte is shipped to the Casapalca smelter, and the rest is exported to the United States. The output so far is small; at present 800 tons per year.
Certain small companies ship ores to the United States: from these the copper content amounted to about 4,000,000 pounds in 1917. This goes (1919) chiefly to the American Metal Co. and L. Vogelstein for refining and selling. This ore comes from Salaverry and Trujillo (Casapalca district), Mollendo (southern district, including Ferrobamba, see below), and Callao. All the blister copper is shipped from Callao except small amounts shipped by Backus & Johnson from the Casapalca district. An American company has developed a large body of low-grade ore at Ferrobamba (Cotobamba Province), southern Peru. The property is inaccessible and no work is now being done.
The following résumé gives some of the salient facts concerning the Peruvian copper producers:
Table 44.—Production of Copper in Peru in 1918