[lbo-talk] Bolivia backs off mines takeover

uvj at vsnl.com uvj at vsnl.com
Mon Nov 13 18:25:39 PST 2006


BBC News http://news.bbc.co.uk/

Last Updated: Wednesday, 1 November 2006

Bolivia backs off mines takeover

http://news.bbc.co.uk/2/hi/business/6104686.stm

[A miners' dispute prompted nationalisation plans]

Bolivian President Evo Morales has backtracked on plans to nationalise his country's mining industry, saying the government cannot currently afford it.

But he said the industry - which ranks second after gas in its league table of exports - would eventually return to state control.

Earlier, the government signed deals with energy firms to allow them to continue operating in Bolivia.

Bolivia expects to earn about 70% of income from the energy sector.

Foreign operators, including Petrobras and Total, would get 30%, said energy minister Carlos Villegas.

Minerals worth $483m - mainly zinc, silver, gold, and tin were exported in the first half of 2006 - the Bolivian Institute of Foreign Commerce said.

Proposals to nationalise the mining industry were put forward after 16 people died during a clash in October between miners over who had the right to run Huanuni tin mine.

Now the nationalisation would be replaced with a "reactivation" of the industry aimed at generating jobs and investment, officials say.



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