Investments 101 – Mallku Khota: How to scare away private investment, by current Bolivian gov…

The following news from El Deber [using government’s official site ABI] and many cartoons from Bolivian press, reflect an undisputed reality: we can scare away the most loyal, fiercest investor, and so all needed employment for Bolivian households.

Government seals reversal of Mallku Khota Hill

The promulgation of Supreme Decree 1308 today [August 2, 2012] formalized the reversal of the Mallku Khota mountain, one of the richest silver deposits located in the North of Potosí, whose control will go into the hands of the State-owned Corporation Minera de Bolivia (Comibol) without affecting the Canadian mining company South American Silver, reported by the Government.

At a press conference, the Minister of mining and metallurgy, Mario Virreira, assured that the State has available resources to take charge of this concession-granted mining project – said – [referring] to the Minera Mallku Khota company and not South American Silver.

“we will clarify any doubts which may arise as regards to the cessation of activities of prospecting and exploration at this important site for the country”, clarified Virreira, against the expectation of surrounding communities to that site, which promoted the reversal.

He also announced that Comibol will employ within a period of 120 days, an independent company that will perform the evaluation of committed investments.

This is from Los Tiempos, July 4, 2012:

person: “Avernoy, with this Mallku Khota issue, no one will want to invest in Bolivia”

Avernoy: “don’t believe that mate, you know a horse walks when it has a carrot in front of its eyes, investors come back like anything, if the carrot gives good revenues!”

Kid: “does my father know the investors, Nicola?”

Dog: “kid, your father knows the greedy”

This is from La Prensa, July 4, 2012:

There is The pillar of democracy and two individuals chopping it of…

chainsaw person: “heil the independent state of Mallku Quta!”

[certainly, anarchy began to rule in Bolivia, and was building up over the last six years…}

This is from La Razon, July 5, 2012:

The scenery is a mixture of the far west and the Bolivian Andes…

The sign reads “Welcome to Mallkhu Khota”

[As vested groups started to claim rights over the mine concession, based on the investment made by the private company to assess the value of this site…]


This is from La Prensa, July 8, 2012:

[Three hostages/employees of the company, trapped, and suffering both physical and mental strain. Current Bolivian government let the time and suffering pass by and there was no sign to enforce the law, take care of innocent people… while the whole world was watching.]

This is from El Diario, July 9, 2012:

Three of the hostages scape, while being chased fiercely and the Bolivian police action…

[should I say action-less? or was that a result of a higher political mandate? There is no way to explain the role of the police force, who just don’t enforce the Law but over the years and hectic situation has more an more, become just a political instrument of the political party in power.]

This is from La Prensa, July 11, 2012:

three smiling and probably “proud” indigenous armed people, with a “KKK” unfortunate appearance from Mallku Quta, and two of the hostages, representing all their suffering…

[is this way to attract investment, as the Finance Minister said, so stiffly, last Wednesday, August 1, 2012?]

This is from El Dia, July 13, 2012:

“A Canadian company forced to leave”

and we see current Bolivian president kicking South American Silver out of the country.

[current president is portrayed as a soccer fan, sometime ago he kicked in the groin an opponent in a non competitive soccer game, after that, the victim was expelled of the game and the aggressor, yes the president was still in the game, that is the style and the way he shows to the world…]

This is from Los Tiempos, July 18, 2012:

Press release reads “community people take over another mine site”

Avernoy as he does the political sign of the MAS [remember that every dictator creates his own sign to demonstrate power and authority, remember Mussolini, Hitler?]: “go ahead community brothers of Suk’Awaña, lets follow the footsteps of Mallku Khota!”

Kid: “we’re witnessing the birth of the indigenous-Andean-miner of the ‘pluri’ national State, right Nicola?”

Dog: “lets salute with the fist up, this new dawn!”

[so, these cartoons, pretty much outline what happens with private investment, law enforcement, human rights, when confronted with anarchy, violence, lies, deception and demagogue. For the latter, just go back to the beginning of this post and read the ‘promises’ of the public official…]

Published by Bolivian Thoughts

Senior managerial experience on sustainable development projects.

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