Bolivia's Morales threatens further mine expropriations

Bolivia's President Evo Morales, who has seized mines, refineries, oil fields and pension funds, as well as telecommunications, electricity and water companies over the past decade, said he may nationalize more mines in the wake of a month-long protest by mining cooperatives that has left five people dead.

"The moment the workers can show our state companies post profits, we will happily continue nationalizing," Morales said at an event in La Paz, according to newspaper La Razón.

Private investment has plummeted in Bolivia since Morales, who was sworn in for a third consecutive term last year, seized mining operations from companies including Glencore, South American Silver and Jindal Steel since first taking office in 2006.

Glencore initiated arbitration proceedings against Bolivia in early August over the nationalization of its Vinto tin and antimony smelting operations and Colquiri silver-tin-zinc mine.

Slumping metals prices and technical issues, meanwhile, forced state mining company Comibol to shut its Karachipampa lead smelter and El Mutún iron and steel unit, while first half mining exports fell 11.3% year-on-year to US$821mn.

Morales, who has battled widespread protests against his government by miners and others over the past year, had nine mining cooperative workers imprisoned this week following the August 25 killing of deputy interior minister Rodolfo Illanes.

The 200,000 member mining cooperative federation, the country's largest mining organization, has staged roadblocks around the country during the past month to reject proposed changes to the country's general cooperative law.

Morales is scheduled to meet with his cabinet on Thursday to discuss changes to labor, environmental and tax regimes for mining cooperatives, state news agency ABI reported.

"The debate isn't over," Alfredo Rada, deputy minister for coordination with social movements, said in a press conference. "Decisions will be taken regarding the irregular and illegal functioning of the cooperative system."

Mining cooperatives fear they will be obligated to join unions under a new law and are demanding the government create a deputy ministry to oversee the cooperatives. The government claims it has no intention of forcing cooperative workers to form unions.

Morales, who lost a bid to extend his decade-long rule in February and is struggling to keep up public spending amidst falling commodities prices, has faced massive protests against his government this year as sectors from transport, health and textiles to teachers and the handicapped battled police and blocked highways in key mining and oil regions.