Thursday, January 25, 2007

Bolivia is ready to nationalize mining industry

01/19/2007

RIO DE JANEIRO, Brazil (Reuters) -- Bolivian President Evo Morales said
Friday he will move ahead with plans to nationalize the country's mining
sector following last year's move to take over its oil and natural gas
industries.

Morales, speaking to reporters at a summit of presidents of the Mercosur
trade bloc in Rio de Janeiro, said his government was studying carefully
details of the plan. It would not be a blank nationalization of the
whole mining sector, he said.

"Where the companies have invested, they will get special treatment so
that they can recover their investments. But, where there weren't
investments by these companies, those will be nationalized," Morales
said.

He declined to mention any other possible sectors that may be
nationalized and gave no further details on the mining plans.

Morales nationalized Bolivia's energy industry in May 2006, and
officials repeatedly have said they wanted to reform the mining industry
and were considering tax increases.

In October, Morales appeared to back away from a similar nationalization
for the dilapidated mining sector, postponing major reforms until 2007
due to a lack of funds.

Copyright 2007 Reuters.

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