Bolivia's Vinto smelter falling short of 2017 target

Bolivian state mining company Comibol is running behind last year's production rates at its Vinto tin smelter after announcing maintenance work.

Vinto exported 7,132t of refined tin through the first seven months of the year, posting US$144mn in revenue, Vinto CEO Ramiro Villavicencio told state Radio Patria Nueva. Vinto, which mainly exports to the US, China, the EU, Mexico and Chile, aims to boost output to over 14,000t this year.

The plant produced 13,111t refined tin in 2016, up 8.3% from 12,106t a year earlier, according to Comibol's website. Vinto exported 13,000t refined tin last year, earning US$234mn in revenue. Tin prices rebounded 21% over the past 12 months to US$20,150/t through the end of June.

Vinto in July announced plans to replace the refractory brick lining its US$40mn Ausmelt blast furnace, which has been operating at 95% of installed capacity. Villavicencio did not comment on maintenance.

The company, expropriated from Swiss trader Glencore in 2007, is working on studies for a US$345mn expansion that would increase capacity to 62,000t/y and treat other metals such as indium, gallium, germanium, copper, silver and lead, according to Comibol.

The company, which is pushing through a restructuring plan, is also holding wage talks with Vinto's labor union to avoid a repeat of last month's strike at its Huanuni zinc-tin mine.

Huanuni's finances have recovered thanks to rising metals prices, enabling Comibol to pay its 3,500 workers a 300-boliviano (US$42) productivity bonus, the mining ministry said in a statement. The unit received a 253mn-boliviano state loan last year after metals prices slumped and its Lucianito mill was shut down due to technical problems.

Comibol has been beset by problems over the past year, closing its Karachipampa silver-lead smelter and El Mutún iron-steel company due to technical problems and falling metals prices. In addition, Glencore last year filed for arbitration with the Bolivian government over the expropriation of mining assets from 2007-12.

Bolivia's mining export revenue was up 24.8% year-on-year to US$1.034bn through the first half on rising metals prices. Zinc exports jumped by half to US$596mn and refined tin 19% to US$162mn through H1.