Bolivia Says It Wants Greater Control Of Mining Industry

Bolivia says it wants greater control of mining industry

Source: Xinhua

3rd May 2006

Bolivia's Vice President Alvaro Garcia said on Tuesday that the government wanted greater control of the mining industry, one day after President Evo Morales signed a decree on nationalizing the county's natural gas and petrol industry.

Garcia said large mining companies could face higher taxes and royalty payments and the government would have a bigger role in the mining industry.

The government would also crack down on foreign timber companies violating conservation laws and steer companies to export processed wood products rather than raw timber, said Garcia.

But he ruled out a nationalization in the wood industry similar to that in the energy sector.

Under the decree signed Monday by Morales, Bolivia's state oil company YPFB will control all natural gas fields and pay foreign companies for their services.

Bolivia has a reserve of about 48.8 trillion cubic feet of natural gas, the second largest deposit in South America, which is being exploited by about 20 foreign firms.

Morales, who took office in January as Bolivia's first indigenous president, has repeatedly said his country's natural resources must be nationalized so that Bolivians could benefit from the profits that are sent overseas.