CIPEC

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The CIPEC (from French : C onseil i ntergouvernemental des p ays e xportateurs de c uivre ; German: International Community of Copper Exporting Countries) was an international organization from 1967 to 1988 whose goals were the formation of a cartel to influence the copper price and deepening it of mutual cooperation.

founding

In the 1960s, a number of countries nationalized copper mining . In particular, the nationalizations in Chile and Zambia , which have the largest known copper reserves, opened up new opportunities for international cooperation. In November 1966 the Chilean President Frei and the Zambian President Kaunda met in Santiago for their first talks. CIPEC was founded in Lusaka in June 1967, following the example of OPEC . In addition to Chile and Zambia, Peru and the Democratic Republic of the Congo were among the founding members. Countries whose main sources of income did not come primarily from copper mining, such as the USA , were deliberately kept out of the CIPEC.

meaning

Mainly driven by Rio Tinto , CIPEC decided in 1974 to cut production by 10 percent - later by as much as 15 percent. This happened against the background of the oil crisis and the profits generated by OPEC. Australia , Indonesia , Papua New Guinea and Yugoslavia joined CIPEC in 1975 . CIPEC thus controlled around 30 percent of the world's refined copper and around 50 percent of all known copper stocks. However, since the company's own production quotas were insufficiently implemented, the production quotas were decided in crisis years and there was still enough copper in the "free market", CIPEC was never able to exert such a great influence on the copper price as OPEC on the price of crude oil. For Chile, the policy of the CIPEC was even counterproductive, as it was urgently dependent on the income from exports. As a result, the importance of the CIPEC gradually waned until it was dissolved in 1988. No new copper cartel has formed since then.

Members

The founding members included:

1975 joined the CIPEC:

See also

Individual evidence

  1. ↑ [1] (PDF file, English; 329 kB)
  2. ↑ CIPEC - The copper exporting countries (PDF file, English)
  3. ↑ Article in the period 1975