Bolivia’s Mining Minister Alberto Echazu told Dow Jones Newswires on Tuesday that the country had no intention of paying Glencore International compensation for the Vinto smelter, nationalised in February.
“The government isn’t paying Glencore for the smelter as this was simply the recuperation of property illegitimately taken from the state”, Echazu said in an interview. However he also said that there were no plans to nationalise mines owned by Glencore or other private companies, although new mine projects should be undertaken in partnership with the state mining company Comibol.
Legal uncertainties regarding compensation for the smelter nationalisation continue to frustrate efforts to market Bolivian tin. On Monday Empresa Metalurgica Vinto halted a tender for 800 tonnes, after apparently receiving only two bids, from end-users, by its June 6 deadline. Traders have been deterred from bidding by threats of legal action.
