PanAm Silver has no ‘official notification' of posAs May Day approaches, speculators fear that Bolivian President EvoMorales may be carrying on his tradition of expropriations, this timethe rumored seizure of mining operations.
Pan American Silver said Tuesday it had consulted with Bolivia'sMinister of Mines and its unions and "has not received officialnotification from any government representative with respect to thepossibility that the Bolivian government might seek to take control ofSan Vicente."
Bolivian media reports claims the Morales Administration wasconsidering terminating joint venture contracts and taking control ofseveral mines formerly operated by the government, which could includethe San Vincente silver mine.
"Pam American has been advised in a meeting held this past weekend,the company's union was assured by the Bolivian Minister of Mines, thatthere would be no action to take control of the San Vicente mine incircumstances in which the SMTMSV [Sindicato Mixto de TrabajadoresMineros de San Vincente] is opposed to such action," the company said ina news release.
"However, the government's final position is unlikely to be clarified prior to May 1," PanAm Silver noted.
Last week, Nicholas Fernandez, a spokesman for state mining companyComibol, said Bolivian President Evo Morales will announced a decree onMay 1st, International Workers Day, to "dismantle theprivatization model" and expropriate zinc, silver and tines mines soldoff by previous Bolivian governments.
On the 100th day of his presidency, Morales moved to nationalize his oil and gas reserves, with a May 1, 2006,directive ordering the military to occupy oil and gas fields whilegiving foreign investors a six-month deadline to comply with his demandsor leave the country.
On yet another May Day, Morales would subsequently nationalize threepower companies, a local electricity cooperative, and Glencore's Vintosmelter
https://www.mineweb.com/mineweb/view/mineweb/en/page72068?oid=125417&sn=Detail&pid=92730
Thus PAA's shares will remain under pressure until that issue is resolved or an answer is given.
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