The government in Bolivia may seize mines amongst protests for wage increases. The Bolivian president Evo Morales has already seized control of gas fields, oil refineries, pension funds and telecommunication companies since he came to power in January 2006.
More recently the government took over Glencore’s tin smelter in a bid to increase state control over the industries in the nation.
Now Coeur d’Alene Mines Corporation and Pan American Silver Corporation are likely to have their contracts revoked. There is talk of four mines run by Glencore affiliates having their concessions rescinded. With the mining unions asking the government to recover the silver, zinc, lead and tin mines being run at present by private companies the future of mining in Bolivia may be very different.
The Pan American spokeswoman Kettina Cordeo said that the company had not been notified of any action by the Bolivian government while the Glencore spokesman Simon Buerk declined to comment on the issue. The company spokesperson for Coeur, Tony Ebersole said that the surface mining and silver production at San Bartolome is underway as usual.
It seems ironical that the country which sent a delegation to the Prospector’s and Developer’s Conference (PDAC) in early March to lobby for more mining investment in the country is now looking at nationalizing most productive and profitable mines. Mining is the second largest source of export income in Bolivia.