Identifier
Created
Classification
Origin
07LAPAZ1231
2007-05-04 11:17:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy La Paz
Cable title:
U.S. MINING COMPANIES UNAFFECTED BY "RESERVE"
VZCZCXYZ0001 RR RUEHWEB DE RUEHLP #1231 1241117 ZNR UUUUU ZZH R 041117Z MAY 07 FM AMEMBASSY LA PAZ TO RUEHC/SECSTATE WASHDC 3452 INFO RUEHAC/AMEMBASSY ASUNCION 6750 RUEHSW/AMEMBASSY BERN 0134 RUEHBO/AMEMBASSY BOGOTA 4080 RUEHBR/AMEMBASSY BRASILIA 7971 RUEHBU/AMEMBASSY BUENOS AIRES 5217 RUEHCV/AMEMBASSY CARACAS 2446 RUEHPE/AMEMBASSY LIMA 2576 RUEHMD/AMEMBASSY MADRID 3449 RUEHMN/AMEMBASSY MONTEVIDEO 4582 RUEHNE/AMEMBASSY NEW DELHI 0130 RUEHQT/AMEMBASSY QUITO 5086 RUEHSG/AMEMBASSY SANTIAGO 9672 RUEHKO/AMEMBASSY TOKYO 0301 RUEHUB/USINT HAVANA 0298 RHMFIUU/HQ USSOUTHCOM MIAMI FL RUMIAAA/USCINCSO MIAMI FL 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 001231
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: U.S. MINING COMPANIES UNAFFECTED BY "RESERVE"
DECLARATION
REF: A. LA PAZ 1215
B. LA PAZ 1008
UNCLAS LA PAZ 001231
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: U.S. MINING COMPANIES UNAFFECTED BY "RESERVE"
DECLARATION
REF: A. LA PAZ 1215
B. LA PAZ 1008
1. (SBU) U.S. mining company executives told the Ambassador
May 3 that the GOB's decision to declare Bolivia's national
territory a "state mineral reserve" (ref A) would not affect
operations. According to Apex Silver Vice President Jerry
Danni, the move will leave existing mining concessions
untouched, which means the firm can move ahead with its $800
million San Cristobal silver-lead-zinc project, expected to
begin production in the third quarter.
2. (SBU) Danni speculated that the decree would have negative
long-term implications for the mining industry, as the
prohibition of new mining concessions will likely drive
potential investors away from Bolivia to neighboring
countries. According to Danni, Apex Silver will likely
cancel several ongoing exploration projects, as the GOB's
most recent move "makes it impossible" for the company to
pursue additional investments.
3. (SBU) Coeur d'Alene Vice President Jim Duff echoed Danni's
comments, telling Econoff May 3 that the prohibition of new
mining concessions will close Bolivia to new investment.
While Coeur d'Alene's San Bartolome silver project will
remain unaffected by the GOB's move, the firm has no plans to
consider additional projects.
4. (SBU) Comment: Executives labeled the GOB's May Day
announcements "relatively benign" but reiterated fears of
potentially harmful tax hikes (ref B). The possibility of
drastic change, together with proposed modifications to
exporters' ability to claim certain tax refunds, continues to
worry executives. As in the past, we will work closely with
mining company representatives and raise their concerns with
GOB officials whenever possible. End comment.
GOLDBERG
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: U.S. MINING COMPANIES UNAFFECTED BY "RESERVE"
DECLARATION
REF: A. LA PAZ 1215
B. LA PAZ 1008
1. (SBU) U.S. mining company executives told the Ambassador
May 3 that the GOB's decision to declare Bolivia's national
territory a "state mineral reserve" (ref A) would not affect
operations. According to Apex Silver Vice President Jerry
Danni, the move will leave existing mining concessions
untouched, which means the firm can move ahead with its $800
million San Cristobal silver-lead-zinc project, expected to
begin production in the third quarter.
2. (SBU) Danni speculated that the decree would have negative
long-term implications for the mining industry, as the
prohibition of new mining concessions will likely drive
potential investors away from Bolivia to neighboring
countries. According to Danni, Apex Silver will likely
cancel several ongoing exploration projects, as the GOB's
most recent move "makes it impossible" for the company to
pursue additional investments.
3. (SBU) Coeur d'Alene Vice President Jim Duff echoed Danni's
comments, telling Econoff May 3 that the prohibition of new
mining concessions will close Bolivia to new investment.
While Coeur d'Alene's San Bartolome silver project will
remain unaffected by the GOB's move, the firm has no plans to
consider additional projects.
4. (SBU) Comment: Executives labeled the GOB's May Day
announcements "relatively benign" but reiterated fears of
potentially harmful tax hikes (ref B). The possibility of
drastic change, together with proposed modifications to
exporters' ability to claim certain tax refunds, continues to
worry executives. As in the past, we will work closely with
mining company representatives and raise their concerns with
GOB officials whenever possible. End comment.
GOLDBERG