Industry Trend Analysis - Bolivia Mining Industry In Global Context - JULY 2016

BMI View: Bolivia ' s mining industry will continue rank among the top 10 global producers of several minerals, despite its challengingly opaque operating environment .

Bolivia will remain a top global producer of tin, lead, zinc and silver in the medium term, supported by vast mineral reserves and increasing government interest in mineral development. While the sector will face headwinds, including subdued mineral prices, a history of nationalism, and underdeveloped infrastructure, we expect Bolivia's mining industry to see increasing investment as mineral prices stabilise. For instance, in January 2016, Bolivia awarded the contract for the El Mutun steel mill to Chinese firm Sinosteel, which will invest USD422mn in the project.

In 2015, according to the USGS, Bolivia accounted for 6.8% of global tin production and 4.8% of global silver production. State miner Corporaci o n Minera de Bolivia (Comibol) will continue to dominate the sector, although the privately owned San Cristobal silver-lead-zinc mine ( Sumitomo Metal Mining Co) and San Bartolome silver mine ( Coeur Mining) will remain key drivers of growth. In Q116, the country posted solid y-o-y production growth for both lead and zinc, of 18.8% and 11.1%, respectively, at a time when global production of these commodities is slowing down.

Base Metals Growth To Prove Solid
Bolivia - Select Minerals Production Growth (% chg y-o-y)
Note: BMI production forecasts for Bolivia not yet available. Source: Bloomberg, BMI

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