Looking around the desert pampa, it’s hard to believe that this scorched, lifeless wasteland was once so highly prized that a war was fought over it – and still more difficult to imagine it alive with smoking chimneys, grinding machinery, offices, houses and a massive workforce. But less than a century ago, the Far North of Chile was the scene of a thriving industry built on its vast nitrate deposits, heavily in demand in Europe and North America as a fertilizer. Nitrates were first exploited in the Atacama Desert in the 1860s, when the region belonged to Bolivia (around Antofagasta) and Peru (around Iquique and Arica). From the early stages, however, the Chilean presence was very strong, both in terms of capital and labour.
The War of the Pacific
When in 1878 the Bolivian government violated an official agreement by raising export taxes on nitrate (hitting Chilean shareholders, including several prominent politicians), Chile protested by sending troops into Antofagasta. Two weeks later, Chile and Bolivia were at war, with Peru joining in (on the Bolivian side) within a couple of months. The War of the Pacific went on for five years, and resulted in Chile taking over all of the nitrate grounds.
The boom years
With the return of political stability after the war, the nitrate industry began to boom in earnest, bringing in enormous export revenues for Chile, and a trail of processing plants, known as oficinas, sprang up all over the pampa. Each oficina sat in the centre of its prescribed land, from where the raw nitrate ore was blasted using gunpowder. The chunks of ore, known as caliche, were then boiled in large copper vats, releasing a nitrate solution which was crystallized in the sun before being sent down to the ports to be shipped abroad. The plants themselves were grimy, noisy places. It was a hard life for the labourers, who worked long hours in dangerous conditions, and were housed in squalid shacks, often without running water and sewerage. The (mostly British) managers, meanwhile, lived in grand residences, dined on imported delicacies and enjoyed a whirl of elegant social activities. Nitrate provided more than half of the Chilean government’s revenues until 1920, by which time the boom was over and the industry in decline.
The beginning of the end
It was World War I that dealt the first serious blow to the nitrate companies, when the suspension of sales to Germany – Chile’s major European buyer – forced almost half the oficinas to close down. The final death knell was sounded when Germany, forced to seek alternative fertilizers, developed cheap synthetic nitrates which quickly displaced Chile’s natural nitrates from their dominant role in the world market. Most of what was left of the industry was killed off by the World Depression in the 1930s, and today just one oficina – María Elena – remains in operation.