Mining - Joint Mining Ventures Abroad: New Concepts for a New Era (The 1969 Jackling Lecture)

Bridging the gap between have and have-not nations is one of the necessities of the present era. The responsibility for accomplishing this must be assumed by the affluent industrial societies of the world, both through their governments and through private enterprise. Despite a discouraging number of instances where companies established in underdeveloped countries have been expropriated, U.S. industry must not abandon such ventures. Instead, it should tailor them to the needs and aspirations of the host nations. One way in which industry can minimize the danger of expropnation is to enter into partnership with the government of the host nation. Kennecott Copper has recently done this in Chile, becoming 49% owner of a company formed to expand and operate the El Teniente mine. So far, the partnership has produced marked benefits not only for Chile, but also for Kennecott. The memory of D.C. Jackling serves chiefly to remind us how much we owe to the pioneers of our industry. Jackling was one of the giants. Orphaned at the age of two, he made his way through sheer persistence and plain hard work. His brilliance gave rise to a vision, and his tenacity made his vision a reality. Foreseeing that economies of scale would make the handling of low-grade ore profitable, he introduced the revolutionary concept of open-pit copper mining. During World War I, the defense effort of the United States was irnrneasurably strengthened by the tremendous supplies of copper from the western mines that Jackling had made possible. Again in World War 11, the demands for copper were supplied, and the nation once more had profound reason to be grateful to this rugged, stubborn man who had long ago ventured into the mountains and unlocked their wealth. We are now embarked upon another great era of change, and we must devise new concepts to meet it. The task is not only to create new techniques of mining, but to forge better ties between men and institutions which will let us work in harmony with the techniques we have. We might recall that while Jackling was a man of towering pride and formidable will, he was also adept at getting others to share his vision and join his purpose. Today our reach for cooperative endeavor must go far beyond our own shores as we seek to develop the buried riches of distant lands. And we would do well to remember that Jackling's remarkable insight would have come to nothing had not British investors been willing to provide much of the initial capital. As was true of so many early enterprises in America, European capital was absolutely essential. CORPORATIONS ABROAD - AN EXPANDING ROLE Today the situation is quite different. The United States is now a capital-surpIus nation and looks abroad for opportunities to employ its capital profitably. On the other hand, we have become dependent on foreign sources for supplies of vital raw materials, while we seek