1. A piece of good news: Noodles Bolivian production will be increased by 30%. A Japanese colony in Santa Cruz, has just inaugurated its wheat flour and noodles processing plant. It is a $15MM dollar investment for a yearly national demand of 300K tons of noodles. This industry creates jobs for 250 people.

http://www.eldeber.com.bo/2011/2011-06-17/vernotaeconomia.php?id=110616213725

2. Fuel and oil imports are well over 25% of 2010. It is estimated that around $850MM will be required as of the end of the year, the Bolivian Institute for Foreign Trade (IBCE) reported. Government allocated $1,002MM for this year’s import of gasoline and diesel. Imports made between January and April, this year, are over 100% of total imports in 2008. During these four months, national imports were $2,087MM; food and beverages represent $204MM. While at the same time excess production of sugar and rice that could go for export, are still controlled by the government. Which in turn, makes an open disincentive for national production, thus it is an incorrect government policy.

http://www.paginasiete.bo/2011-06-17/Economia/NoticiaPrincipal/9Eco01170611.aspx

3. Mine takeover update: Yesterday, the Sayaquira mine (Embas – Barrosquira investment) was peacefully “re-taken” by 200 policemen. Today’s editorial from El Deber warns about this in terms of discouraging messages to investors. Government’s legislation on this type of investment is taking over five years, Jose Pimentel, Mining Minister, said that there is a 30% progress of that Law. So, make your calculations in terms of how much more an investor would have to wait before deciding whether to invest here or elsewhere. The Constitution approved in 2009, established that natural resources belong to the indigenous people (36 indigenous nations identified). The question is which law would apply? Highland communities believe that those natural resources are theirs alone, and since Spanish colony until the Republic, that represented a violation of their rights. At the same time, it is believed that the government has been handling a dual position: accepting by “de facto” the highlands violent take overs and rejecting lowlands’ indigenous groups decision about hydrocarbon exploration and production. The editorial continues to say that this latter may have happened because government needs so badly revenues from oil/gas. It concludes saying that a National preference/priority should overcome the particular needs of indigenous groups (indigenous nations); and that the government should revise the Constitution and enforce Laws that don’t contradict among each other.

http://www.eldeber.com.bo/2011/2011-06-17/editorial.php

The following article reports miners going back to Sayaquira mine, Inquisivi Province, La Paz.

http://www.la-razon.com/version.php?ArticleId=132285&EditionId=2561

This article estates that the owner, Barrosquira, will attend a meeting this Monday at Ichoca, the capital of the Inquisivi Province. Its General Manager, Andres Molina informed that his company wants the whole Fifth Section of that province to decide whether the company should remain and that Barrosquira will leave if asked to.

http://www.laprensa.com.bo/noticias/17-6-2011/noticias/17-06-2011_18530.php

4. Violence in Santa Cruz: Yesterday late afternoon, over two thousand people protested in central plaza; demanding the Municipality gives priority to the unions of market vendors (gremialistas) at the new District Markets. Police force intervened and resulted in many injured people on both sides. The municipality authorized neighbors of those markets to work as vendors; the vendors’ union resents that instruction and wants that Ordinance to be cancelled as they claim entitlement to those facilities. The municipality reply is that a new market is being built to house over five thousand vendors, currently in the surroundings of La Ramada market; district markets are for their neighbors to work there. I believe that union vendors are an extremely violent force that also carries a huge importance at electoral times, so the problem compounds and little gets done.

http://eldia.com.bo/index.php?c=Portada&articulo=Gremialistas-protestan-por-mercados-distritales&cat=1&pla=3&id_articulo=65939