Bolivia to consider nationalizing embattled silver project

[Judi Lynn]

Bolivia to consider nationalizing embattled silver project
Sun Jul 8, 2012 11:08pm EDT

(Reuters) - Bolivia will consider nationalizing Canadian miner South American Silver Corp's silver property, President Evo Morales said on Sunday, following violent indigenous protests against the mining project.

Leftist Morales, who last month took control of global commodities giant Glencore's tin and zinc mine in the Andean country, said he hadn't taken a final decision on whether to revoke the Canadian miner's concession.

"Nationalization is our obligation, I already raised the issue of nationalizing (the Malku Khota project) last year, and I told (local residents) to reach an agreement, because when they want we're going to nationalize," Morales told a farmers' gathering.

Exploration work, in which South American Silver plans to invest some $50 million, is expected to end within three years. The company describes it as "one of the world's largest undeveloped silver, indium and gallium deposits."

More:
http://www.reuters.com/article/2012/07/09/bolivia-southamerican-silver-idUSL2E8I90EZ20120709?rpc=401&feedType=RSS&feedName=rbssFinancialServicesAndRealEstateNews&rpc=401

[ocpagu]

1. The nationalization was considered...

... after "violent indigenous protests against the mining project".

http://en.mercopress.com/2012/07/09/bolivia-indigenous-rioting-threaten-canadian-mining-company-with-nationalization

Let's see how the mainstream press will present this. They love to use indigenous protests to disqualify the government, will they do the same now that a Canadian multinational is the targget?

[brovibes]

2. question

has the nationalizing of industries proved to benefit the home country in latin america?
I'm asking because I honestly don't know. I do think its messed up that Bolivia - or at least its citizens - see no significant boost in their economy from these ventures, but does nationalizing actually work?