This "act of sovereignty" was the espoused basis for a later international economic boycott, which further isolated Chile from the world economy, worsening the state of political polarization that led to the 1973 Chilean coup d'état.
Evidently these mines did not fit in with ENAMI's plans and Disputada de las Condes was subsequently sold (at a substantial profit) to Exxon Minerals.
[2] 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.
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.
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".
In fact, at the beginning of 1971, he sent Congress a bill 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.
[4] 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.
This idea was based on the concept that the multinational corporations had reaped profits far in excess of what was considered "normal business practice".
In October 1971, the General Controller's office handed down the calculations of the indemnification due, in line with the parameters established by the Constitutional Amendment.
The Law establishes a specific tax on mining activities, which came in force on January 1, 2006 consisting of a sliding scale according to copper production from nothing below 12,000 tonnes p.a.