[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Wednesday, 1 November 2006, 01:44 GMT
Bolivia backs off mines takeover
Miners in Huanuni mine in Bolivia carry body in sheet
A miners' dispute prompted nationalisation plans
Bolivian President Evo Morales has backtracked on plans to nationalise his country's mining industry, saying the government cannot currently afford it.

But he said the industry - which ranks second after gas in its league table of exports - would eventually return to state control.

Earlier, the government signed deals with energy firms to allow them to continue operating in Bolivia.

Bolivia expects to earn about 70% of income from the energy sector.

Foreign operators, including Petrobras and Total, would get 30%, said energy minister Carlos Villegas.

Minerals worth $483m - mainly zinc, silver, gold, and tin were exported in the first half of 2006 - the Bolivian Institute of Foreign Commerce said.

Proposals to nationalise the mining industry were put forward after 16 people died during a clash in October between miners over who had the right to run Huanuni tin mine.

Now the nationalisation would be replaced with a "reactivation" of the industry aimed at generating jobs and investment, officials say.


SEE ALSO

RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites



FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

PRODUCTS & SERVICES

Americas Africa Europe Middle East South Asia Asia Pacific