Bolivia’s Morales backs increased tax on minerals

Just two weeks after his mines minister went on record as favouring a significant increase to the export tax on minerals, Bolivian President Evo Morales has put his weight behind the idea.

During a four-hour speech to commemorate his one-year anniversary Morales said a bill was sent to Bolivia’s Congress calling for an increase in the Complementary Mining Tax (ICM) levied on foreign mining firms operating in Bolivia.

Of little condolence to foreign direct investment in the country, Morales made a stipulation that the tax would not hit small mining cooperatives.

Early reports say the ICM will be determined based on mineral prices on the international market.

Morales also said he would try to regain ownership of Bolivia’s largest tin smelter, Vinto, from privately held Glencore International.

Morales said the effect of reforms would be a nationalization of the mining sector.

Foreign companies operating in the region and other experts have long pointed out that the strong populist rhetoric used in many of Morales’ speeches isn’t always followed up on.

Denver, Colo.-based Apex Silver Mines (SIL-X) and Coeur d’Alene, Idaho-based Coeur d’Alene Mines (CDM-T, CDE-N) are slated to go into production at two separate, large-scale silver and zinc projects later this year.

Toronto-based Apogee Minerals (APE-V, AGEEF-O), and Vancouver-based Pan American Silver (PAA-T, PAAS-Q) also have operations in the country.