Bolivia’s government has started drafting a new mining law which could result in the formation of new state metals and mining companies, according to Business News Americas. This could possibly involve a merger between the Vinto tin smelter (EMV) and Empresa Minera Huanuni (EMH), which controls the country’s largest tin mine. Alternatively Vinto could be combined into a new state metals corporation which would also cover lead, zinc, silver and steel, as well as tin.
The proposal for a merger between mine and smelter came from EMH staff “because the employees feel that neither company can operate without the other and it doesn’t make sense to them that state companies would have debt between them," said Alfredo Zaconeta, a mines ministry press official. The companies are currently discussing EMV’s debt to EMH that stands at roughly US$17million for tin purchases. Heliodoro Sandi, head of the ministry’s policy unit, told BNamericas that the options are being considered. "I think it will be studied comprehensively while the new mining law is under discussion," he added.
All concentrates produced at Huanuni are processed at the Vinto smelter, which also receives feed from private mines and co-operatives. Last year Huanuni produced 7,875 tonnes of tin-in-concentrate while Vinto produced 9,544 tonnes of refined metal.
Both companies face major financial challenges over the next few years in order to fund large expansion and modernisation projects. Huanuni is to build a new mill which will triple its ore processing capacity to 3,000 tpd, while Vinto is to install a new Ausmelt plant. EMH’s manager Roberto Montaño said that, "at current trade prices, our profitability is low and that means operations are breaking even, but we haven’t seen losses yet." According to local press reports, Huanuni produced an estimated 2,170 tonnes in the first quarter of 2009.
