In recent months, Bolivia has witnessed a spate of mining disputes, moves to nationalize and renationalize projects, and violence among protesting miners. Populist sloganeering and radical language has often been used to excuse instability and mask deeper-rooted problems.
The first significant incident occurred on June 22, when Bolivia cancelled commodities trader Glencore's operational rights to the Colquiri tin mine, the second largest in the country. Unsurprisingly, the company opposed the decision. "[Glencore] reserves its rights to seek fair compensation pursuant to all available domestic and international remedies," the company said.
"The action taken by the government of Bolivia will pose a number of serious questions relating to the government’s future policy towards foreign investment in the mining sector," it added.
Many commentators now wonder how the Bolivian government can resuscitate its reputation with the international mining community. The country needs to attract foreign investment and know-how to continue developing a vibrant, modern mining. . .View Full Article