[DEBATE] : (Fwd) Morales 'cries nationalisation'

[Patrick Bond]

Bolivia’s President cries ‘nationalization’ again, while ministers 
insist mining has nothing to fear
By: Dorothy Kosich
Posted: '17-OCT-06 08:00' GMT © Mineweb 1997-2006

RENO, NV (Mineweb.com) --It was the same old pattern this week as 
Bolivian President Evo Morales threatened to nationalize the nation’s 
mining industry, while his ministers insisted foreign miners had nothing 
to fear.

Bolivia’s official news agency Agencia Boliviana de Información (ABI) 
reported Monday that the president announced that tin, silver and gold 
mining will revert to state-ownership again.

In a speech honoring the founding of the city of Challapata in the 
Province of Eduardo Abarora in the Department of Oruro, Morales 
announced that a new mining code will be launched October 31, which 
includes state control of exploration, exploitation, smelting and 
marketing of mining in Bolivia. “We have begun with hydrocarbons, the 
next step are the minerals, there will be surprises with the tin, the 
silver and the gold, those minerals have to pass to the Bolivian State 
under the social control of the Bolivian people. That is the next urgent 
step,” he declared.

Last May, Morales nationalized the hydrocarbons industry, increased 
taxes on foreign petroleum operations, and began to negotiate new 
contracts with foreign operators.

However, by late afternoon Monday, Bolivia’s business-oriented Vice 
President Alvaro Garcia told ABI that “the private investor has no need 
to worry. Comibol (the state mining company) is going to be revitalized. 
The president is working on that but private investment, foreign and 
local, that invests and that generates jobs, won’t be touched.”

U.S.-based silver mining companies Coeur d’Alene Mines and Apex Silver 
Mines are both major building silver projects in Bolivia. In an e-mail 
to Mineweb Monday, Coeur Vice President Scott Lamb said that in the case 
of Coeur’s San Bartolome project, “the government already owns the 
mineral resource. We simply lease these rights from the government.”

Lamb also noted that the government doesn’t approve of foreign mining 
companies that are sitting on claims, but not spending money to develop 
them. “Again, that is not an issue for us.”

Colorado-based Apex did not respond to Mineweb’s request for comment by 
our deadline late Monday night.


HUANUNI ARBITRATION

Meanwhile, the Bolivian Government Monday commenced arbitration with 
Comibol and the National Confederacy of Mining Cooperatives of Bolivia 
(Fencomin) after the two sides were involved in a violent confrontation 
October 5th at Combiol’s Empresa Minera Huanani tin mine that killed 16 
persons and wounded at least 50 others. The cooperatives were demanding 
access to tin deposits when state-employed miners counterattacked.

Morales called the confrontation the worst days of his president, and 
fired then-Minister of Mines Walter Villaroel and the head of Comibol 
Antonio Rebello.

The main goal of Bolivia’s new Minister of Mining and Steel Guillermo 
Dalence is to turn the 4,000 miners belonging to the four cooperatives 
of Huanuni into Comibol employees, according to Prensa Latina. ABI 
reported that Dalence hopes the proposal will reactivate Bolivia’s 
mining industry.

The government suggests that the cooperative miners be allowed to 
continue mining on Posokoni hill. Meanwhile, Comibol will open other 
areas for mining, including Maria Francisca, Pepitos and Porvenior. 
Bolivia’s government also plans to expand the Machacamarca tin plant to 
a 500tpd capacity.

Dalence said the government also hopes to turn its attention to the 
widows and orphans of the recent conflict, and rebuild offices and homes 
that were destroyed by dynamiting during the violence.