Glencore International and the Bolivian government are close to agreeing a 50:50 joint venture agreement to operate two tin and zinc mines as well as finally settling compensation terms for the nationalisation of the Vinto smelter in February 2007.
The joint ventures will apply to the Colquiri tin and zinc mine in La Paz department and the Porco zinc, lead and silver mine in Potosí department. The Colquiri mine produces some 2,500 tpy of tin-in-concentrate and until last year all of the mine’s production was treated at the Vinto smelter. They are currently leased by Glencore’s Bolivian subsidiary Sinchi Wayra from state mining corporation Comibol.
“We are wrapping up the details for a definitive agreement” that covers all three operations and eliminates the possibility of mediation or other legal measures, mining minister Alberto Echazú told Bolivian news agency ANF. Among the main points holding up the talks is the question of how much Bolivia will pay Glencore as indemnity for the expropriation of Vinto. According to the report, the two sides must still define a figure to compensate the Swiss company for investments it has made in all three assets.
