Glencore protests Bolivian mine seizure
25th Jun 2012
JUNE 25 – The world’s greatest integrated commodities producer and marketer, Glencore, has slammed the Bolivian government’s nationalisation of its Colquiri mine in La Paz, saying it raises questions in the mining sector about the government’s policy on foreign investment.
Glencore says its first concern is to seek an orderly handover of control and ensure the wellbeing of its staff after receiving the government decree ordering the immediate nationalisation of the mine.
However, it reserves its right to seek fair compensation in Bolivia and internationally.
Colquiri is one of five mines in Bolivia operated by subsidiary Sinchi Wayra, a holding group acquired by a Glencore subsidiary in 2005. The zinc-tin mine’s annual capacity is about 6,000t tin concentrate.
The state media agency Abi says control of the mine will be handed over to the state-owned mining company Comibol, the Corporación Minera de Bolivia. Vice-President Alvaro Garcia Linera said: ''We're not going to hand our country to foreigners who destroyed Bolivia and left it stagnating for 20 years,'' he said.
Glencore argues the mine has been developed and operated pursuant to the rights granted by the government.
It says the Colquiri mine has paid over $US70M in royalties, taxes and fees in Bolivia, and the group as a whole has made over $300M in payments to the government and leasing fees to Comibol for operations in the country.
The nationalisation order came as Glencore was finalising a new mining agreement with the Bolivian government that would have allowed for state participation of up to 55% of profits, increasing the total government take to 77-79%, and carried commitments by Glencore to invest over $160M in Bolivia over the next five years, including at least $56M in the Colquiri mine.
The socialist government of President Evo Morales has nationalised several companies in the mining, cement, petroleum and communications sectors since coming to power in 2006.
Also in the June 21 - 27, 2012 edition
- AFRICA
- Deep focus on grade
- Kibo eggs in Tanzanian basket
- Sundance offers view of the future
- ASIA DESK
- Southdown countdown continues
- Wait for Burma continues
- AustMETS
- MST takes Berlin
- CONSULTING
- Firm facilitates harder look at capital returns
- CONTRACTING
- Exporting mining excellence … and egalitarianism
- FINANCE
- Argonaut to test for Lumwana look-alike
- Canada opens up wider view of Panoramic future
- Exception to the rule
- GOLD
- Ampella feeling short-changed
- Midas shows Fortitude, dexterity
- Visit promotes stronger Unity view
- INTERCEPTS
- $3.15b Russian steel complex mooted
- Anglo American and Codelco still talking
- Another good year for Richland tanzanite
- Anxious miners await Mongolian elections
- Apollo eyes development potential on back of maiden resource
- Arch Coal shuts down Appalachian mines, lays off 750
- Atlas takes another step towards Pilbara target
- Aussie iron ore exports to jump 10% in 2013
- Back to work for Paynes Find
- Bank to advise on Kagara choices
- BFS in the frame for CDC Philippines project
- BHP extends its SA territory
- Big dry hampers Straits’ Kalimantan mine
- Big shipment beats BC Iron targets
- Big upgrade for Herencia’s Chilean base metals project
- Brookfield wins Roy Hill village job
- Capital raising to support 2013 DFS completion
- Cashed up Archer targets Campoona graphite
- Centaurus wins support for Brazilian project
- Centerra faces more problems in Kyrgyzstan
- Centerra fights attack on Kyrgyz licence
- Centerra Gold beats nationalisation bid
- Chinese rare earths clamp dispute escalates
- Chinese steelmaker backs Cleveland project
- Codelco gets $800M govt hand out
- Companies secure Wiggins terminal capacity
- Condor flies to new Chilean iron project
- Core to progress Roxby Downs after licences granted
- Coventry adds to its Ontario gold camp
- DeBeers man takes top New World Resources post
- Discovery set for first Botswana mine shipment
- Downer pulls out of loco construction for imports
- Eclipse funded for uranium drilling and exploration
- Encanto picks potash plant site
- Escondida copper treatment prices up
- Evolution to acquire land close to Edna May gold mine
- Fatality halts Lonmin mine
- Ferrous targets Brazil iron ore growth
- Ferrowest’s Yogi iron funding deal lapses
- FMG issues court challenge to new tax
- Foreigners fear Brazilian nationalisation legislation
- Gas was not a safety threat, mine insists
- Goldcorp wins court battle on Chilean project
- Good news day for Orocobre’s Argentine project
- Highfield runs with Pamplona potash project
- Hoggard headed for top Orica role
- Huntly mine returns to full production
- Jameson sets Crown Mountain resource deadline
- Japanese steel demand to rise
- Jervois, EMC head to court in JV dispute
- Karmin lists in Peru
- KGHM accepts Polish dividend demand
- Kibo encouraged by Tanzania exploration
- LionGold backs Charters Towers mine development
- Mantle digs into history for new coal sources
- Market looking for increased Xstrata bid from Glencore
- MD post reward for View executive
- Mining magnates in the hot seat over imported labour
- Money in old gold for Phoenix
- More PGM pain strikes Royal Bafokeng
- Mt Dove DSO contracts awarded
- Mungana pushes on with Tunkillia BFS
- New Appin coal mine gets BHP go-ahead
- New Kumba mine on track
- New offer awaited as Xstrata takeover stumbles
- New plant lifts Glass Earth’s gold production
- No new potash mines for 5 years, says big Canadian
- Panel orders UCL to revise bidder’s statement
- Panoramic eyes acquisition of +1Moz gold project
- Panoramic tops 1Moz at Gidgee
- PanTerra ahead of schedule at Pueblo Viejo
- Peabody cuts to stem coal downturn
- Peak Hill partners build their Mid West reserves
- Phoenix boosts its Castle Hill resources
- Pilbara project sale finalised
- Planet Metals plans capital return
- Plant ramp-up waits on CMC funding talks
- PNG partners strengthen their ties
- Rail pact clears way for ResGen mine funding
- Randalls back and likely to lift 2013 production
- Rio Tinto awards $17M Brockman 4 contract
- Rio’s first coking coal shipment from Benga
- Rox Resources extends acquisition option for Mt Fisher Gold
- Sable dismisses subsidiary CEO
- Sacked boss sues Jaguar Mining
- Sams Creek rising fast for Aussie MOD
- Senior reshuffle at Centrex
- SouthGobi to shut flagship Mongolian coal mine
- Stellar lifts grades, stone sizes at Droujba
- Talga cranks up Swedish graphite project
- Tanzanian project new focus for IMX
- Thomson to relinquish tenements
- US silver giant to raise $350M
- Vale completes Colombian coal sale
- Vale wins first approvals for giant S11D project
- Vector Resources lifts global gold resource to 308,765oz
- Wildhorse Energy receives government backing for uranium project
- X-ray vision delivers for Rockwell
- ISSUES
- Fatigue and road safety
- MINING IT
- Charting a new course
- Evaluation time is up
- IT notebook: Coal Services, Cortex Engineering, Corporate Travel Management
- Sandvik builds drill technology platform
- Vulcan gone to water
- PEOPLE
- People on the move: Australian Centre for Geomechanics, Bauxite Resources
- Six months in mining is a very long time
- VIEW FROM THE WEST END
- All the news that’s new and approved
- Horrid Henry