The Chilean Law N° 13.196 known as Ley Reservada del Cobre (Spanish for “Restricted Law on Copper”) was a highly controversial secret law (“restricted” in this context refers to the law not being freely available) issued on 29 October 1958 under the administration of Carlos Ibáñez del Campo in order to allocate revenues from the copper mining corporations for the purchase and maintenance of Materiel of the Chilean armed forces. The law was replaced in 2019, with the armed forces’ finances scheduled to come under the national budget by 2029.
Automatic military funding from natural resources revenues can be traced in Chile to the 1880s: 211
On 7 January 1938, law N° 6.152, known as Ley de Cruceros (Spanish for “Cruciers Law”), was issued to transfer 90% of the leasing receipts of South Patagonian territories to arms purchases.
Later, in 1942, the Chilean Government, worried about the ongoing Pacific War and the defense, created the CONSUDENA, Consejo Superior de la Defensa Nacional, and allowed them to allocate revenues from currency dealings, alcohol tax, cigarettes tax and income from big copper companies for the purchase of weapons without parliamentary oversight.
The Ley de Cruceros or Ley Reservada del Cobre was issued in 1958 after a serious military incident on the Snipe islet by the administration of President Ibáñez in order to deviate funds from tax revenues from big copper mining corporations directly to the armed forces.
The Chilean nationalization of copper transferred in 1971 the properties of the big copper mining corporations Anaconda Copper Company and Kennecott Utah Copper Corporation to the Chilean state and in 1976 CODELCO was created in order to manage the development and production.
The law has been modified in 1973, 1975, 1986 and 1987.