http://www.nytimes.com/aponline/business/AP-Bolivia-Mines-Nationalization.html?_r=1&oref=slogin


Bolivia to Nationalize Mines 

By THE ASSOCIATED PRESS
Published: October 15, 2006
Filed at 11:32 p.m. ET



LA PAZ, Bolivia (AP) -- President Evo Morales said Sunday he will nationalize 
Bolivia's mines as part of an overhaul of the South American country's mining 
industry after a violent clash earlier this month between rival miners' groups 
killed 16 people.

Morales nationalized the South American nation's oil and gas reserves on May 1, 
giving international companies six months to cede majority control of their 
Bolivian operations to the state or leave the country. However, the process has 
been delayed by the resignation of key energy officials and a reorganization of 
Bolivia's own state petroleum company.

''We started with hydrocarbons, and the next step are the minerals,'' Morales 
said while giving away tractors to local farmers in the town of Challapata, 120 
miles south of the capital La Paz.

''There will be some surprises with tin, silver and gold. These minerals must 
pass to the Bolivian state under the social control of the Bolivian people. 
That is the next urgent step we must take.''

Newly appointed Mining Minister Guillermo Dalence said Sunday that the 
nationalization plan would be launched on Oct. 31, the anniversary of the first 
nationalization of mines during a revolution in 1952.

Morales' comments were a stronger reiteration of a nationalization plan he put 
forth immediately following the deadly battle Oct. 5-6 between independent and 
state-employed miners over the right to work at the Huanuni tin mine. At the 
time, Morales had said the state would only expropriate mines where foreign 
operators had not invested sufficiently.

In the first half of 2006, Bolivian mines exported minerals worth $483 million, 
according to the Bolivian Institute of Foreign Commerce. The metals -- mostly 
zinc, silver, gold, and tin -- together represented Bolivia's largest export 
after natural gas.

Morales' administration is continuing negotiations with independent miners' 
cooperatives who stormed the Huanuni mine on Oct. 5. State-employed miners 
counterattacked, and the rival groups exchanged gunfire and threw dynamite at 
each other for two days before 700 riot police restored order.

Both groups see Huanuni's tin as a source of steady employment in South 
America's poorest country.

Morales, a former coca-grower, was elected in December as Bolivia's first 
indigenous president. Besides nationalizing the petroleum industry, he has also 
called an assembly to rewrite the constitution and proposed a dramatic land 
reform bill that would redistribute unproductive land to Bolivia's poor.


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