BOLIVIA

BOLIVIA

Govt prohibits award of new mining concessions - Bolivia

BNAmericas

2nd May 2007

The Bolivian government has approved a supreme decree stating that all mining reserves are national territory and new concessions will no longer be awarded in the country, state news agency ABI reported.

The decree nullifies concessions that are in the approval process.

With the decision, the Bolivian government will award state miner Comibol the exclusive right to mine and administrate resources.

Mining areas previously awarded as concessions will remain unaffected except for aggregates under municipal authority, the report said.

The initiative seeks to stimulate development in the mining industry and includes metallic and non-metallic mineral resources, evaporites, precious and semi-precious stones and brine, according to the report.

The measure also aims to place areas yet to be surveyed and explored under the control of the nation's geological and technical mining survey Sergeotecmin with no option of being placed under a mining contract.

However, the report said that it is possible to partially or completely open reserves through supreme decree once Sergeotecmin has finished surveys and exploration studies.

The decree was issued because of the high number of areas that need to be surveyed and explored for later mining by both domestic and foreign investors, so long as they comply with the national mining code and environmental regulations, the report said.

By Business News Americas staff reporters