Following the nationalization of the Vinto tin smelter formerly operated by a subsidiary of Glencore International on 9 February, the Bolivian government has said that it will invest US$25 million in it.
About $10 million will be made available immediately to make plant improvements, with a further $15 million to be made available as working capital for the operation, according to mining minister Guillermo Dalence.
Both Glencore and the Bolivian government have made claims for compensation relating to the expropriation this month and Glencore’s acquisition of the plant as part of Comsur in 2005. The Bolivian government claims that the unit had been undervalued in several transactions since it was privatised in 1999.
