No nationalizations in Bolivian mines

Bolivia Weekly has the English language scoop on it, which includes:

"Last week, Coeur d’Alene announced that the Morales administration had assured it that it wouldn’t be nationalized; now it appears that the Pan American Silver’s San Vincente and Swiss-owned Sinchi Wayra’s mines will not be affected."

The reason? It seems that the unions at the mines don't want them to be "recovered" (i.e. nationalized) by the State. Meanwhile the deputy mining minister said, "A recovery of the mines that were owned by the State mining company Comibol and had been passed over to private mining companies for their administration and exploitation had been considered; but the condition was that the unions working in each of the mines were to agree to this (recovery). All the unions are against (this move), it's not going to happen."

Read more at Bolivia Weekly here.

Bolivian holiday traditions

aaah, the good old days....

One thing we know about Evo Morales is that he sure likes May 1st to make Presidential decrees:

• In 2006 he chose May 1st to nationalize the oil and gas industry in Bolivia
• In 2008 he nationalized a telephone company then run by Euro Telecom Intenational
• In 2010 he took over four electricity companies, including that of GDF Suez (which pissed off the French press for some time).

Though let's point out before going on that none of these were straight expropriations and Bolivia always reaches a negotiated agreement on the buy out price for the companies. So anyway, what's in store for May Day 2011? Well, let's check on what he said yesterday according to AP:

"AP: President Evo Morales announced the nationalization of some mines that previously belonged to the State. Without giving further details of the companies that may be affected, he said that he would emit an Executive Decree on May 1st "....to nationalize some mining companies that previously were of the State." while assuring that those mines that have always been in private hands would not be touched. "We are going to respect private property", he said."

Which mines come out of this reverse lottery in less than a month is still unknown, but all fingers are currently pointing to Pan American Silver's (PAA.to) (PAAS) San Vicente mine, Coeur D'Alene's (CDE) San Bartolomé mine and Glencore's Bolivian subsidiary company 'Sinchi Wayra' that runs five mines in the country including JVs or Mining Operations Contracts with Bolivia's Comibol State mining company at three of them.

Fortunately, those people your author contacted today with exposure to Bolivia via junior mining companies (this humble scribe has none) seem to think that this won't affect them at all....because Evo said so. Meanwhile your author will feel much more comfortable today as soon as the monkey stuck in his butt has flown out of said part of anatomy.

Ain't no joking with the press for a lefty

I started a joke
That started the whole world crying
But I didn't see
That the joke was on me
I Started a Joke, The Bee Gees, 1968

Yesterday, Hugo Chavez was in Brazil to meet with Yoda and talk entry to Mercosur for Venezuela. All went swimmingly and the two pals did their country things. Then came the press conference, which at one point had a small incident that AFP reported in the following way (translated):

In a relaxed atmosphere, Chávez joked with Lula by saying that Venezuela was going through a phase of "nationalizations, except for Brazilian companies (in Venezuela)" which caused generalized laughter at the meeting.

However,

• Argentine press were also present.
• Argentine press that don't like Chávez
• And Argentina is just 31 days away from the polls in its hotly contested senate elections

Yep, the anti-Kirchner bizmedia and MSM in Buenos Aires who had watched Chávez recently nationalize the Techint-owned steel mill in Venezuela (and pay a suitable price for the asset, it must be pointed out) opened up with all barrels blazing on Chávez and the way that this dictator friend of the Kirchners was about to take over every Argentine asset in Venezuela and how, of course, Klishtina would start down the same path as soon as the key elections next month were over.....if Argentina lets her.

Once it got to the point of the Argentine industrial union (the biz bigwigs association there) calling for a bar on Venezuela as a Mercosur partner, Klishtina got on the phone to Chávez and asked him about his comments that seem to "involve certain discrimination". It was only at that point that Hugo realized what he'd done (i.e. had the temerity to crack a joke and treat those present as adults...big mistake when it comes to reporters in South America) and so this afternooon he got his diplo corps to issue a formal communicado that officially tells in official language just how much Venezuela respects Argentina and they'd never do anything to piss them off and it was all a smear campaign by certain sectors of the press etc etc read it here if you like...letterheaded paper and everything.

Moral of the story: Don't crack jokes in the presence of dumbasses with recording equipment, teeline skills and editors with agendas.

Ecuador, mining and Correa

Studmuffin displays his personal power by crushing
walnuts with his bare hands in public

This morning I've had several mails asking an opinion on this Reuters report that begins in this way:

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

QUITO (Reuters) - Ecuador's President Rafael Correa said Saturday that key sectors of the economy, including oil and mines, must be in government hands CONTINUES

xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Well dudes, the comments and issue were examined in detail in The IKN Weekly published yesterday, but I note Dynasty (DMM.to) down 4.4% in early trading on low volumes.