Identifier
Created
Classification
Origin
06LAPAZ2976
2006-11-01 17:34:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy La Paz
Cable title:
GOB POSTPONES MINING PLAN UNTIL 2007
how-toVZCZCXYZ0000 RR RUEHWEB DE RUEHLP #2976 3051734 ZNR UUUUU ZZH R 011734Z NOV 06 FM AMEMBASSY LA PAZ TO RUEHC/SECSTATE WASHDC 1174 INFO RUEHAC/AMEMBASSY ASUNCION 6243 RUEHBO/AMEMBASSY BOGOTA 3563 RUEHBR/AMEMBASSY BRASILIA 7425 RUEHBU/AMEMBASSY BUENOS AIRES 4686 RUEHCV/AMEMBASSY CARACAS 1936 RUEHPE/AMEMBASSY LIMA 1988 RUEHMD/AMEMBASSY MADRID 3171 RUEHME/AMEMBASSY MEXICO 1861 RUEHMN/AMEMBASSY MONTEVIDEO 4137 RUEHNE/AMEMBASSY NEW DELHI 0066 RUEHQT/AMEMBASSY QUITO 4575 RUEHSG/AMEMBASSY SANTIAGO 9149 RUEHKO/AMEMBASSY TOKYO 0260 RUCPDOC/DEPT OF COMMERCE WASHINGTON DC RUEATRS/DEPT OF TREASURY WASHINGTON DC RUEHC/DEPT OF INTERIOR WASHINGTON DC RUEHC/DEPT OF LABOR WASHINGTON DC RHEHNSC/NSC WASHINGTON DC
UNCLAS LA PAZ 002976
SIPDIS
SENSITIVE
SIPDIS
STATE FOR WHA/AND LPETRONI
COMMERCE FOR JANGLIN
TREASURY FOR SGOOCH
E.O. 12958: N/A
TAGS: EMIN EINV ECON PREL PGOV BL
SUBJECT: GOB POSTPONES MINING PLAN UNTIL 2007
REF: A. LA PAZ 2944
B. LA PAZ 2860
UNCLAS LA PAZ 002976
SIPDIS
SENSITIVE
SIPDIS
STATE FOR WHA/AND LPETRONI
COMMERCE FOR JANGLIN
TREASURY FOR SGOOCH
E.O. 12958: N/A
TAGS: EMIN EINV ECON PREL PGOV BL
SUBJECT: GOB POSTPONES MINING PLAN UNTIL 2007
REF: A. LA PAZ 2944
B. LA PAZ 2860
1. (U) Summary: President Morales chose not to unveil his
much-hyped mining plan October 31 (ref A),instead announcing
that the GOB would postpone it until 2007, ostensibly because
of a lack of financing. Morales attempted to divert
attention to a supreme decree authorizing the conversion of
cooperative miners in Huanuni to salaried employees of the
state, as promised in the aftermath of October 5-6 conflicts
(ref B). End summary.
2. (U) President Morales chose not to unveil his much-hyped
mining plan October 31 (ref A),instead announcing that the
GOB would postpone it until 2007, ostensibly because of a
lack of financing. Morales told the press the GOB wanted to
"consolidate" the hydrocarbons nationalization but would
continue working on a plan to reactive the mining sector.
3. (U) Morales attempted to divert attention to a supreme
decree authorizing the conversion of cooperative miners in
Huanuni to salaried employees of the state, as promised in
the aftermath of October 5-6 conflicts between miners'
cooperatives and unions (ref B). The supreme decree directs
Comibol, the state-owned mining company, to assume control of
all activities in Huanuni and convert members of the region's
four cooperatives into regular laborers; the decree does not
dictate salaries or specify the number of miners Comibol may
hire but says conversions and mining activities must meet the
terms of the company's operating plan. The decree also
allocates approximately $9.7 million to the development of
new mineral deposits, the expansion of processing facilities,
and the construction of a tailings dam.
4. (SBU) Comment: The GOB may indeed face a funding
shortfall, but Morales' postponement was more likely a
political maneuver designed to retain for future use a means
of rallying the people and boosting approval ratings. From a
political perspective, it may make sense for Morales to keep
something in his back pocket, but from a business
perspective, it seems less wise, as foreign and domestic
investors alike will have to cope still longer with
uncertainty. Morales may also face opposition from social
sectors, including cooperative miners, who have said they are
seriously opposed to any nationalization. End comment.
URS
SIPDIS
SENSITIVE
SIPDIS
STATE FOR WHA/AND LPETRONI
COMMERCE FOR JANGLIN
TREASURY FOR SGOOCH
E.O. 12958: N/A
TAGS: EMIN EINV ECON PREL PGOV BL
SUBJECT: GOB POSTPONES MINING PLAN UNTIL 2007
REF: A. LA PAZ 2944
B. LA PAZ 2860
1. (U) Summary: President Morales chose not to unveil his
much-hyped mining plan October 31 (ref A),instead announcing
that the GOB would postpone it until 2007, ostensibly because
of a lack of financing. Morales attempted to divert
attention to a supreme decree authorizing the conversion of
cooperative miners in Huanuni to salaried employees of the
state, as promised in the aftermath of October 5-6 conflicts
(ref B). End summary.
2. (U) President Morales chose not to unveil his much-hyped
mining plan October 31 (ref A),instead announcing that the
GOB would postpone it until 2007, ostensibly because of a
lack of financing. Morales told the press the GOB wanted to
"consolidate" the hydrocarbons nationalization but would
continue working on a plan to reactive the mining sector.
3. (U) Morales attempted to divert attention to a supreme
decree authorizing the conversion of cooperative miners in
Huanuni to salaried employees of the state, as promised in
the aftermath of October 5-6 conflicts between miners'
cooperatives and unions (ref B). The supreme decree directs
Comibol, the state-owned mining company, to assume control of
all activities in Huanuni and convert members of the region's
four cooperatives into regular laborers; the decree does not
dictate salaries or specify the number of miners Comibol may
hire but says conversions and mining activities must meet the
terms of the company's operating plan. The decree also
allocates approximately $9.7 million to the development of
new mineral deposits, the expansion of processing facilities,
and the construction of a tailings dam.
4. (SBU) Comment: The GOB may indeed face a funding
shortfall, but Morales' postponement was more likely a
political maneuver designed to retain for future use a means
of rallying the people and boosting approval ratings. From a
political perspective, it may make sense for Morales to keep
something in his back pocket, but from a business
perspective, it seems less wise, as foreign and domestic
investors alike will have to cope still longer with
uncertainty. Morales may also face opposition from social
sectors, including cooperative miners, who have said they are
seriously opposed to any nationalization. End comment.
URS