After six years of current government, the Bolivian mining sector is experiencing the same inefficiencies as before 1985. Former vice-minister for Mining Policy, Gerardo Coro told Fides radio and now published in Pagina Siete that the reason of his removal was he alerted that the production cost in Huanuni is higher than the international price.
Last Monday, the price of tin at the international markets was $10.21 and the equilibrium point is $10.34; according to Marcelino Quispe, General Manager for the Huanuni mine.
Currently this mine has 4,800 workers, and 1,200 tons of tin are produced; current head of COMIBOL (State-owned mining corporation) Hector Cordoba said that the government will invest more in Huanuni so that production will reach 4,000 tons.
http://www.paginasiete.bo/2011-09-22/Economia/Destacados/10Eco00122.aspx
I consider déjà vu as Bolivian state-owned mining practices were inefficient before and chances are that history repeats itself. Bolivia has experienced in the past excellent prices of our natural resources, and then collapses that generated turmoil, unemployment, government instability.
La Razon reproduces the Ambassador of Japan’s declaration (Toshio Watanabe) that if mining taxes are raised, they may cause bankrupcy in the private sector. Japan capitals own Minera San Cristobal, the largest mining operation in Bolivia with Japanese capitals. Watanabe’s remarks were in direct relation with the new Mining Law that envisions higher taxes.
http://www.la-razon.com/version.php?ArticleId=137905&EditionId=2661
This new law has been “designed” for the last five years, in an alarming and inefficient manner. Bolivia has a long tradition in mining and yet this law underwent a very slow process. Apparently new regulations have not been consulted with the workers and the private investors, which makes things worse. Any probable private investor out there, does not need to be discouraged to come with news like this one.
La Prensa reports that for the last two days, miners walked in the streets of La Paz, exploding dynamite, in protest of Hector Cordova appointment as head of COMIBOL, replacing Hugo Miranda
Bolivian Thoughts | Pensamientos Bolivianos (Bilingual/Bilingüe) 
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