Bolivia says it invested over US$200mn in mining this year

Bolivia, a major zinc and tin producer, will have invested US$204mn in its mining industry by the end of this year, mostly in state company Comibol's lithium project, a senior government official said Friday.

The bulk of the investment came at the Uyuni potassium salt plant, where Comibol has allocated 1.2bn bolivianos (US$168mn). The plant is being built by China's CAMC Engineering, mining minister César Navarro said. Germany's K-Utec Salt Technologies is also working on a 33.6mn-boliviano lithium carbonate plant, Navarro said in broadcast comments.

Bolivia also inaugurated the Ausmelt blast furnace at Comibol's 18,000t/y Vinto tin smelter this year, part of a plan to modernize the facility expropriated from Glencore in 2007.

Comibol brought online the Kivcet blast furnace at its 51,000t/y Karachipampa silver-lead smelter this year, but was forced to shut the complex following an accident earlier this month. The company also closed down its El Mutún iron ore mine in September due to lack of funds and slumping prices.

Bolivia's mining exports dropped 13% year-on-year to US$1.476bn through October. Exports were hit by falling metals prices and a month long protest in the mining region of Potosí.

Private investment has dwindled in Bolivia since President Evo Morales, who was sworn in for a third consecutive term in January and plans to run for a fourth term, seized mining operations from companies including Glencore, South American Silver and Jindal Steel since first taking office in 2006.

Bolivia, which is home to mines operated by Pan American Silver, Sumitomo, Coeur Mining, Orvana Minerals and Franklin Mining, produced 19,287t tin, 407,332t zinc, 82,131t lead, 7,549t copper and 41.2Moz silver in 2013, according to the most recent available figures from the mining ministry.