lastly, because of the insurance guarantees obtained by Kennecott, even if the renegotiations collapsed, Kennecott had succeeded in protecting a good portion of its interests should Chile opt to go ahead and appropriate the copper mine. Additionally, the company could also call in its other partners to act as allies.
In the end, some years later, the mine was eventually expropriated by Chile, but Kennecott was in a far much better position than it had initially been before it initially started to renegotiate the contract. Kennecott enhanced its BATNA by making an offer the Chileans couldn’t refuse, while taking steps to protect their interests should negotiations collapse.
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