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Wednesday, 1 November 2006, 01:44 GMT

Bolivia backs off mines takeover

Miners in Huanuni mine in Bolivia carry body in sheet 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.



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Related to this story:
Bolivia's nationalisation plans in trouble (17 Aug 06 |  Business )

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