Identifier
Created
Classification
Origin
07LAPAZ1860
2007-07-05 22:59:00
CONFIDENTIAL//NOFORN
Embassy La Paz
Cable title:  

HUANUNI MINERS DEMAND AUTONOMY AND HIGH-LEVEL

Tags:  PGOV EMIN ECON BL 
pdf how-to read a cable
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DE RUEHLP #1860/01 1862259
ZNY CCCCC ZZH
P 052259Z JUL 07
FM AMEMBASSY LA PAZ
TO RUEHC/SECSTATE WASHDC PRIORITY 4219
INFO RUEHAC/AMEMBASSY ASUNCION 6906
RUEHBO/AMEMBASSY BOGOTA 4252
RUEHBR/AMEMBASSY BRASILIA 8136
RUEHBU/AMEMBASSY BUENOS AIRES 5388
RUEHCV/AMEMBASSY CARACAS 2619
RUEHPE/AMEMBASSY LIMA 2779
RUEHMN/AMEMBASSY MONTEVIDEO 4709
RUEHNE/AMEMBASSY NEW DELHI 0140
RUEHQT/AMEMBASSY QUITO 5250
RUEHSG/AMEMBASSY SANTIAGO 9851
RUMIAAA/USCINCSO MIAMI FL
RUEHUB/USINT HAVANA 0397
RHEHNSC/NSC WASHINGTON DC
RHMFISS/HQ USSOUTHCOM MIAMI FL
C O N F I D E N T I A L LA PAZ 001860 

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: DECL: 07/05/2017
TAGS: PGOV EMIN ECON BL
SUBJECT: HUANUNI MINERS DEMAND AUTONOMY AND HIGH-LEVEL
ATTENTION

REF: LA PAZ 1840

-------
Summary
-------

C O N F I D E N T I A L LA PAZ 001860

SIPDIS

SENSITIVE
SIPDIS

E.O. 12958: DECL: 07/05/2017
TAGS: PGOV EMIN ECON BL
SUBJECT: HUANUNI MINERS DEMAND AUTONOMY AND HIGH-LEVEL
ATTENTION

REF: LA PAZ 1840

--------------
Summary
--------------


1. (C) Huanuni's miners are blocking roads between La Paz,
Oruro, Potosi, and Cochabamba (note: reports as of 1745
indicate that the police have broken the blockades using
teargas.) Press coverage has been unsympathetic, focusing on
the suffering of average Bolivians stranded in bus stations
and on the roads. The miners submitted a list of 12 demands
to the GOB, some of which have already been met, some which
are under negotiation, and some which the GOB characterizes
as "unacceptable and counterintuitive" or "absurd." This is
the worst confrontation in Huanuni since violence between
salaried and cooperative miners last year left 12 dead and 65
wounded. At a time when proposed changes to the mining code
would require that all private mines sign joint venture
agreements with the Bolivian Mining Corporation (COMIBOL),
COMIBOL's inability to manage its largest operation is not
encouraging. End Summary.

--------------
The Miners' Demands
--------------


2. (SBU) Not satisfied with the presence of Mining Minister
Luis Alberto Echazu and Labor Minister Walter Delgadillo, the
miners are demanding the presence of Vice President Garcia
Linera, Defense Minister Walker San Miguel and Minister of
Government Alfredo Rada. This pressure for high-level
attention follows their submission of 12 formal demands to
the GOB, the most important of which (excluding human
resources and salary issues) are listed below with the GOB's
current response:

a.) Decree 28901 (which took Huanuni from the cooperatives
and made it a COMIBOL operation) should be made law. The GOB
points out that the decree is now with the Senate and out of
their hands.

b.) The GOB should have a monopoly on the marketing of tin
to avoid theft and illegal exports. The GOB answers that the
National Service of Registration and Control of Minerals and
Metals (Senarecom) was created to track production and sales
of minerals to avoid illegal exportation. (Comment: Emboff
recently met with an insider in the mining industry who

claimed that Huanuni loses USD2.5 million per month due to
theft and claimed that the workers themselves smuggle ore out
of the mine, making up to USD60 per backpack of smuggled ore.)

c.) Huanuni should be autonomous and have administrative
control without COMIBOL restrictions. The GOB calls this
demand unacceptable and counterintuitive, stating that
resources should be for the country as a whole.

d.) The GOB should build a new plant to process tin. The
GOB answers that they are increasing the capacity of two
already-existing plants.

e.) USD9.8 million should be invested to "reactivate" the
deposit. The GOB says that COMIBOL has a policy for
investing in Huanuni and has already invested USD3 million.

f.) The prefect of Oruro should be removed from his post for
having failed to "pacify" Huanuni. The GOB characterizes
this demand as "absurd" and politically motivated.

g.) COMIBOL regional manager Guillermo Dalence should be
removed from his post. COMIBOL agreed to this demand "to
contribute to a solution to the conflict." Dalence has been
transferred to Santa Cruz to push for the exploitation of the
Mutun iron reserve (according to the Bolivian information
agency, the GOB is within days of signing a contract with
India's Jindal to develop Mutun.)



--------------
Tensions High
--------------


3. (SBU) Two weeks ago the miners of Huanuni corporation
demanded that the GOB send soldiers to the area to confront
thieves and restore peace. At that time their demands also
included calls for a new mineral treatment plant, but did not
include "autonomy" for the company; current demands
constitute a rhetorical jump in pressure. At the time of the
demand for "militarization" of the area, the GOB responded
quickly, setting in motion the required steps for the
movement of the soldiers. The miners' current demands and
pressure tactics are not receiving as positive a response.

--------------
COMIBOL's Capability in Question
--------------


4. (C) The fact that the workers in COMIBOL's largest
operation are demanding autonomy from their parent company
clearly demonstrates the doubts within the sector as to
COMIBOL's ability to manage the mine. This correlates with
comments emboff has received from other sources: that COMIBOL
is understaffed and overstretched. The draft mining code
currently unofficially in circulation would require that all
private mining operations in Bolivia sign joint-venture
contracts with COMIBOL within a year. At a time when COMIBOL
is obviously having difficulties managing its current
operations, the wisdom of expanding its influence is
questionable.

--------------
Comment
--------------


5. (C) As previously reported (reftel and previous),
Bolivia's cooperative miners have been very successful in
obtaining political concessions from the Morales government,
particularly though their use of pressure tactics such as
dynamite-throwing protests. The power of state-employed
miners in Huanuni has not recently been tested, and although
their tactics are not popular, they may be able to achieve
their demands. At a time when executives of the three major
U.S. mining companies in Bolivia cannot even arrange meetings
with the mining minister, it will be interesting to see if
Huanuni's miners manage to meet with Vice President Garcia
Linera, as they are demanding. End comment.
GOLDBERG