Summary
The president of Bolivia, Evo Morales, announces imminent nationalization of mining sector.
Analysis
In the Bolivian town of Challapata, Evo Morales recently announced that he would soon order the nationalization of the mining sector. In his speech, he stated that “The next step are the mineral deposits, such that there will be surprises with tin, silver and gold.” While this is to some extent an effort to reduce tensions among mineworkers, which had resulted in deadly conflicts, it is also consistent with Morales’ earlier statements that he intended to nationalize the industry as part of his effort to place the nation’s natural resources under state control.
While the weeks ahead will clarify the significance, and reach, of his statement and decision, Morales’ vice president, Alvaro García Linera sought to calm investors by stating that “The private investor does not have to worry. Private investment, foreign and local, that invests, that generates employment, will not be touched.” While concessions that have been awarded but not utilized may revert to the government, companies with significant investments will probably be forced to renegotiate the terms of their agreements.
