Bolivian minister: Comibol overhaul won't curtail projects

The ongoing restructuring of Bolivia's Comibol will not slow the state mining company's investment plans, a senior government official said.

At least 70% of personnel at the overstaffed company works in administration, mining minister César Navarro said. The restructuring aims to ensure the Comiboly handles everything from project planning to metals production and trading, he added.

The company, which lacks geologists, currently outsources exploration work at its mining prospects, according to Navarro. Comibol aims to handle trading for the Vinto tin smelter, which will also produce refined silver next year, he said.

"Comibol can't go on under these conditions. We have many challenges," Navarro said in a statement. "This re-founding won't affect any project or producing mining company in the country. Comibol will manage the entire production chain."

Navarro presented the restructuring plan to the mineworkers federation, which will study the proposal, according to federation head Orlando Gutiérrez. Bolivia's miners were the driving force behind nationwide protests against President Evo Morales' government last year.

Also last year, Comibol announced plans to invest 120mn bolivianos (US$17mn) in exploration in 2017, part of a government plan to invest US$1.965bn in the mining and metallurgical industries by 2020.

Comibol has been beset by problems over the past year, closing its Karachipampa silver-lead smelter and El Mutún iron ore mine due to technical problems and low metals prices, in addition to delays at its lithium project. Swiss trader Glencore last year also filed for arbitration against the Bolivian government for the expropriation of mining assets in 2007-12.