Bolivia protests curb mining output in Potosí

Region-wide protests for greater public spending are cutting minerals production in Bolivia's southern Andean department of Potosí, a senior government official said.

Three weeks of roadblocks and other demonstrations have caused at least US$5mn in losses to the local mining industry and 8mn bolivianos (US$1.1mn) in lost royalties, the Andean country's mining minister César Navarro said. Bolivia is a major zinc, tin and silver exporter.

Protesters are demanding the government build a hydroelectric plant, a wind farm, an international airport, hospitals and dams, in addition to lime and cement plants. Potosí is home to Chicago-based Coeur's San Bartolomé silver mine, the Cerro Rico silver deposits and state mining company Comibol's 51,000t/y Karachipampa silver-lead smelter.

Coeur's Minera Manquiri unit, which acquires concentrates from 350 mining cooperative workers in the region, may halt operations due to the ongoing protests, Navarro said.

"Due to the characteristics of the conflict, we're at a very critical stage," Navarro said in a broadcast by television station Bolivisión. "We're possibly days from Minera Manquiri closing down its operations in Potosí."

Coeur spokeswoman Donna Mirandola didn't immediately reply to an e-mail seeking comment.

Members of President Evo Morales' cabinet were scheduled to meet Tuesday for talks, Potosí civic committee leader Juan Carlos Tarqui said on La Paz-based Radio Panamericana.

President Morales, who was sworn in for a third consecutive term in January, has seized mining operations from companies including Glencore, Jindal and South American Silver since first taking office in 2006. Bolivia's minerals exports rose 3.8% to US$2.04bn in 2014, according to the mining ministry.

The industry, which also includes mines operated by Pan American Silver, Sumitomo, Orvana Minerals and Franklin Mining, produced 11,400t tin, 430,000t zinc and 39.7Moz silver in 2012, the most recent figures available, according to industry associations.