Daily Archives: June 14, 2012

Takeover becomes nationalization of a Glencore mine concession

As a result of blockades and pressures, the government has shown, one more time, the worst possible scenario at a time when they also want to attract foreign capital. Jindal is on their way out, and some government officials were saying other companies will be hired…

Current Bolivian president is on a trip to Europe while Bolivia nationalizes Swiss Glencore investments… could the time have been any better? does anyone out there understands this kind of politics?

Los Tiempos report:

The Government agreed to nationalize only the site awarded to the transnational Glencore and not touch the places of the Colquiri mine that are exploited by the cooperatives’ affiliates, who also promised to give them the  Rosario vein-site [veta in Spanish] that was transferred by the company Sinchi Wayra.

The Agreement was reached last night in a meeting between leaders of the National Federation of mining cooperatives (Fencomin) and governmental authorities. The blockade of the Oruro – La Paz road announced for today was suspended, but the sector remains on alert. [and again, pressure after pressure in an anarchical way due to government’s lack of management of these type of issues]

“Respect for the areas we have mining cooperatives”, made clear last night the Executive Secretary of the Federation of mining cooperatives (Fencomin), Albino Garcia, to highlight that also “respect the agreements arriving on previous occasion on new mining areas that we want to exploit”. [Bolivia does not only scare away investments but also loses tax, royalty revenues as Coops seldom do]

Garcia referred to the implementation of the agreement signed last June 8 between the cooperative Sinchi Wayra executives February 26, concessionaire of the Colquiri mine, through which the transfers of the Rosario vein to three cooperatives on the condition that they sell their production to the company. [does that sound as some sort of blackmail result or what? or is it a last resort of a company to at least recuperate some of the mineral production to cover/honor commitments acquired in the international markets?]

The announcement was made known by the leader near 20:00 yesterday, pointing out that after several hours of negotiations there could be an agreement which put an end to the threat of blocking of highways should start today. However, the representative of cooperatives’ affiliates noted that the sector will remain in “Vigil” until the fulfilment of agreements with the Government. [threats may come this way as a result of unclear and non-enforceable regulations; and over expectations that those people receive from bad politics and demagogue]

Shortly before the start of meetings, the acting-President, Álvaro García, said yesterday that the Government had taken the decision to nationalize the Colquiri mine and what it sought it was do so with respect for the rights of miners and cooperative affiliates.

The negotiations began shortly before noon yesterday and before entering meet with cooperative people, the Minister of the Presidency, Juan Ramón Quintana, had ratified that if the majority of the members of the cooperative February 26 did not accept the “nationalization”, then they would not forced them to it.

In the Federation of mining cooperatives they consider a “pre-constitued right” the agreement reached last week with the Bolivian subsidiary of the Swiss Glencore, the assignment of “Rosario” site, which was meant to put an end to the taking of the Colquiri mine.

However, on Saturday, the Government decided the “nationalization”, that is the conclusion of the lease that Sinchi Wayra had in Colquiri, for which the Decree of “recovery” is in preparation.

Financial study

About the norm that will be given by the Government, the Minister of the Presidency said yesterday morning that he is working on it, since the Decree “is subject to a financial, economic, legal and technical study” to the draft submitted to the Cabinet.

“The concession of the Rosario vein in favour of cooperatives” was consolidated in the early hours of Friday, they pointed to reports provided on that occasion. More than one week earlier, cooperative affiliates took the mine, preventing production. [they are also placing in jeopardy the market as who will buy from them is uncertain, this is not the way to do business worldwide]

The Colquiri mine is located in the province of Inquisivi and is rich in tin and zinc. On May 30, it was taken by about 1,000 members of the cooperative “26 de Febrero”.

http://www.lostiempos.com/diario/actualidad/economia/20120613/acuerdan-nacionalizar-solo-a-glencore_174856_368431.html

Please remember that in this blog, I wrote my observations inside the article in brackets like these [… ].