Industry Trend Analysis - State To Tighten Grip On Mining Industry - OCT 2016

BMI View: Following the death of Deputy Interior Minister Rodolfo Illanes during mining protests on August 25, the Bolivian government will increase control over mining cooperatives, leaving even less space for private foreign investment.

Tension between Bolivian President Evo Morales' government and mining cooperatives reached a peak on August 26, when violent protests against new mining regulations resulted in the death of four mine workers and Deputy Interior Minister Rodolfo Illanes. The protesters, members of mining cooperatives, sought to avoid new legislation that would allow workers to unionise, strengthen environmental regulations and curb cooperatives' ability to create contracts with private companies.

In response to the escalating violence, on September 1, the Morales administration issued five new decrees to increase oversight of historically unregulated mining cooperatives: a ban on dynamite at protests; mandatory reporting of members, volume and value of production and earnings to the government; inactive mining concessions reverted to state control; concessions under joint-ventures, leases or subleases between cooperatives and private companies reverted to state control; workers employed or servicing cooperatives to be protected by the General Labour Law, meaning they are on the payroll, have a right to unionise and receive benefits.

Poor Mining Investment Outlook To Keep Bolivia Behind Peers
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Source: BMI

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