Shares of companies with operating assets in Bolivia were lower Monday amid reports last week that Glencore International Plc’s Colquiri tin and zinc mine in Bolivia has been nationalized, following clashes between management and workers.
They include:
Pan American Silver Corp. (TSX: T.PAA, Stock Forum), which operates the San Vincente mine. Pan American shares were off 1.5% to $17.45, leaving the company with a market cap of $2.7 billion, based on 153.8 million shares outstanding.
Coeur d’Alene Mines Corp. (NYSE: CDE, Stock Forum), which has the 7.5 million ounce-per-year San Bartolome mine. Coeur d’Alene fell 1.54% to $17.24 leaving the company with a market cap of $1.55 billion, based on 89.6 million shares outstanding.
Orvana Minerals Corp. (TSX: T.ORV, Stock Forum), which owns the Don Mario copper-gold-silver mine, which started production in January 2012. Orvana was down 2% to 94 cents, leaving the company with a market cap of $128.4 million, based on 136.6 million shares outstanding.
Under the leftist President Evo Morales, the government has also nationalized Bolivia’s natural gas industry as well as the telecom and electricity sectors, writes Canaccord Wealth Management in its Morning Coffee report.
Based in Switzerland, Glencore is a leading global commodities producer. On Friday, the company said it strongly protests the action taken by the government of Bolivia and reserves its rights to seek fair compensation pursuant to all available domestic and international remedies.
The Colquiri mine produced 2,000 tonnes of tin concentrate last year, generating revenues of over $300 million.
So far, Glencore said it has invested over $250 million in the Bolivian mining industry and wider economy. “Our investment provides several communities with jobs, education, access to healthcare and improved infrastructure,’’ the Swiss company said.