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imajen13,I wish I had someone's ear I merely ran across the info on Biste's site and thought I would post it here for us ihub fmnj folks.
GLTA. NN
-----------------------------
imajen13 wrote:
Maybe, Nervous Ned, since you apparently have Senor Biste's ear, he can give some us some information so we know whether or not this is fools gold.
------------------
Status of the technical audit of the Escala mine project
http://www.michaelbiste.com/documentos/Release_status_escala_mine_audit_v6.pdf
GLTA. NN
Spanish to English translation needed. Can someone who is versed in Spanish please translate this El Diario Bolivian News article.
Thanks. NN
http://www.eldiario.net/noticias/2009/2009_04/nt090429/3_02ecn.php
A comparación de otros países
Gobierno no apoya a la minería chica
Royalflush1 -thanks for the xlation - appreciate it.
Ned
Bolivians & Brazilians and GTL - Anyone know Spanish
Saw this post over on the Yahoo boards...
The brazilians have cut their purchase of gas from Bolivia by 1/3rd. Bolivians have excess gas and must burn it (dump it) to get to their liquids! This is the moment to talk GTL to the bolivians. Carpe diem! Petty. Too bad you may not have that credibility anymore. Sorry the article is in spanish.
http://www.la-razon.com/versiones/20090109_006602/nota_249_743467.htm
If you know Spanish and translate to English, please do so.
Thanks. Ned
Huge volume (151,630,050 shares traded) in last four days
1-May-08 09:34 am
151,630,050 shares traded in the last four days. 24 million shares in one trade. Something is up, good or bad, but somthing is up. Good Luck All FMNJ longs, and wishes for a prosperous future for FMNJ.
(Saw this posted over on the Yahoo Finance board)
sorry, made a mistake with this post
Franklin has signed deal for processing plant...
...Per Chilean mining news
http://www.mch.cl/noticias/imprimir_noticia.php?id=9648
English translation (Original text in Spanish is also included below)
24-Jan-2008: (13:45) (Bolivia) Franklin purchase processing plant for Scale
The firm based in Las Vegas Franklin Mining sealed an agreement for the acquisition of a processing plant for mine polimetálica Bolivian Scale. According to Franklin, the plant is in good working order, receive and process immediately mine production scale. There were disclosed details of the location or the capacity of the plant.
Source / BNamericas
-----------------------------------------------------
24/01/08 (13:45) (Bolivia) Franklin compra planta procesadora para Escala
La firma con sede en Las Vegas Franklin Mining selló un acuerdo por la adquisición de una planta de procesamiento para su mina polimetálica boliviana Escala. De acuerdo con Franklin, la planta se encuentra en buenas condiciones de funcionamiento y de recibir y procesar de inmediato la producción minera de Escala. No se dieron a conocer los detalles de la ubicación ni de la capacidad de la planta.
Fuente / BNamericas
----------------------------------------
Ned. GLTA
Letter is on Franklin website
http://www.franklinmining.com/investorinfocenter/todaysletter.html
memorandum
18 February 2008
From: The Office of the President
To: Franklin Mining, Inc. Shareholders
Thank you for the many positive comments and words of encouragement received following my 8 February letter. I plan to use this and at least on other letter to further update you in as much detail as possible, within the boundaries of what is appropriate for public discussion at this time – by that I mean, I’ll provide as much information, in as much detail as I can.
Before I begin responding to questions, though, I have an update on our 2007 financial statements.
Statements for the remaining three quarters of 2007 have been completed; last week, the statements were submitted for an auditor’s review and will be posted at www.FranklinMining.com as soon as they are returned, assuming there are no questions.
Later this year, after a quarter or two of revenues ... our financials will look and feel better.
Now, a few comments and questions from last week’s discussions.
The single most frequently asked question was that of a planned or pending reverse- split.
This letter is my personal assurance to you that no such action is planned.
There may have been past comments or discussions which prompted this week’s wide-spread fear that Franklin was planning a reverse split. But no such action has been contemplated, much less planned since I was appointed CEO and President and elected
Chairman of the Board.
At this stage in our company’s growth and development – when we’re sitting on the edge of becoming a full-fledged, operating company – a reverse split would serve no long term
purpose and might possibly become a short term distraction. However, we would not rule-out a stock buy-back plan or a buy-out offer.
This doesn’t mean the company won’t, at some future time point, undertake a plan of some nature to reduce the number of issued and outstanding shares. For example, I remember previous discussions of a stock buy-back plan and that is a plan I will support when funds are available.
As for now, neither a reserve split nor a share buy-back plan is planned. Frankly, I don’t have time to design and manage such a plan. My days are full with mining and energy projects and I believe the majority of you prefer I spend my time and energy focused on projects that will bring us revenues and lead to profits.
The second most frequent discussion topic was that of our share structure.
A previously scheduled meeting of the Board of Directors was held on October 4, 2007 at our San Antonio office. This was the first meeting after I accepted the invitation to become Franklin’s CEO and President and was elected Chairman. At this meeting a
previous discussion about increasing our authorized common stock from 2.5 billion shares to 3.0 was again taken up. The Board believed the increase would be necessary in order to continue raising capital and the corporate resolution was passed at that meeting. However, it was not submitted to Nevada’s Secretary of State until January 22, 2008 and has not yet been utilized.
My commitment to you is that these additional shares will be used solely for raising capital needed to pay corporate expense and expand existing mining and energy projects.
The October 2007 Corporate Resolution and January 2008 filing was the first such action since August 2006. The potential new capital that this latest increase represents will be
used for
... monthly operating expenses
... expansion of our Escala Mine project
-- acquire needed capital equipment for the silver operation
-- expand the recovery operation to include copper and gold
-- resolve our need for on-site processing
... complete Cerro Rico’s feasibility study
... continue developing existing gas-to-liquid projects in both Bolivia and
Argentina
... ongoing discussions of oil and natural gas projects in both Bolivia and
Argentina
In a few instances, with the approval of both parties, shares of Franklin’s common will be issued to settle unpaid debts of the company.
This doesn’t mean the company won’t, at some future time point, undertake a plan of some nature to reduce the number of issued and outstanding shares. For example, I remember previous discussions of a stock buy-back plan and that is a plan I will support when funds are available.
As for now, neither a reserve split nor a share buy-back plan is planned. Frankly, I don’t have time to design and manage such a plan. My days are full with mining and energy projects and I believe the majority of you prefer I spend my time and energy focused on projects that will bring us revenues and lead to profits.
Another often asked question has been about video and additional photo galleries
for the web-site. As time permits, we continue working on the video – translations and
English sub-titles has been the delay. Here are a few new photographs with others being
added to the web-site.
Javier Leyton, Engineer (left, red vest) and
Dr. Jaime Arancibia, General Manager
(right, blue/white jacket) inspect mine
preparation at the Escala
Preparing the mine for blasting.
Each blast produces approximately
7 tons to be gathered for
processing
Our estimate is that we have in excess of
100 tons of rock gathered and ready for
processing
Again, thank you for your patience and your continued support of our company.
Sincerely,
William A. Petty, CEO
Other company at Escala is Atlas Precious Metals
http://www.atlaspreciousmetals.com/project_04.php
...The Escala related PRs mention another company mining on the Escala property. Franklin has Escala I and this Atlas Precious Metals must have Escala II and III.
--------------------------------
About The Escala Mine: Comprising three separate mining applications, COMIBOL's Escala Mine concession totals 2,000 hectares located in the Sud Lipez Province, near Bolivia's border with Argentina. Franklin Mining, Bolivia S.A. has been awarded a contract to mine 500 hectares within the original concession. Escala II and Escala III mining applications are currently assigned to another company.
----------------------------------
Anyone know anything about Atlas Precious Metals??
Ned
Making Cents in Penny Stocks
By Rich Duprey December 28, 2007
http://tinyurl.com/2gmojw
...an excerpt from the article...
They say there's a silver lining to every cloud, and since miner Coeur D'Alene burrows beneath the earth for the shiny metal, it could well have a lock on those cloudy days. With supplies getting scarce, silver prices have tripled from their lows below $5 per ounce in 2003. As a hedge against inflation, precious-metals bugs have long seen gold and silver as the ultimate safe haven. With the Federal Reserve willing to risk such inflation to save the economy from recession, precious-metals miners start to look more appealing. Of course, we've heard that before about silver and its cousin, gold, but Coeur D'Alene has already bounced from recent lows and could continue to benefit from a strong silver market.
Of the 650-plus investors who have rated Coeur D'Alene, 96% of them believe it will ultimately outperform the market. In recommending the miner, CAPS investor NeroSagetrade believes that a stabilizing production operation with good financials equals a ray of sunshine here:
[Coeur D'Alene] Mines should greatly benefit from a decreasing dollar and the Fed's current easing policy on interest rates. I fully expect silver to appreciate by roughly 20% over the next 12-18 months and gold should remain steady around $800 an ounce. Production has shown signs of steadying and revenues look poised to grow by roughly 50% in 2008. CDE is trading at just 11 times forward earnings and I think this could be a very conservative estimate for 2008. If you want to take advantage of rising metal prices I think CDE makes a lot of sense. They also have 90M dollars more cash than debt so they have plenty of sustaining power at their current price. The long-term chart shows a possible break of the downtrend.
Bolivia sees about $400 mln in mine investments
Here's the URL to the Reuters article that imagen mentioned in the previous post.
http://tinyurl.com/262kdo
redsox, the date of article was 25 December 2007. See http://tinyurl.com/2mygyj (date is at the bottom of the page)
Ned
redsox, the date of article was 25 December 2007.
Ned
Re post 18954 - anyone here know Spanish? If so, please provide a translation of the article located at the Spanish URL in the previus post. While the Google and Alta Vista sites give you some indication of what the article said, the translations are typically poor and often lose the context.
TIA. Ned
Franklin Mining: New mining project that will prioritise the area of social relations
English translation: http://tinyurl.com/ytgpe8
Spanish original: http://tinyurl.com/2zcun8
An excerpt from the article is pasted below. In addition to Escala, it looks like some other things are still brewing in the way of projects for our little company.
Ned
NEGOTIATIONS
The company is now at the negotiating table with COMIBOL, in the final stage of technical revisions to this ambitious project.
The company is also completing studies for the project Relaves laughed Black, Pulacayo, Potosi, due to the complexity of the product and transportation, as well as environmental considerations the beginning of the same has been delayed, the company hopes to have a final solution in a short time.
The positive environmental impact is expected from the implementation of this project has become a very important issue in the company and that great care is taken to ensure maximum results.
Franklin Mining is preparing to operate the mine Scale, is the richest part of the part of 2000 hectares and have permission to work in 500 acres, the mine is pre-prepared and there are studies that show proven and probable reserves with content Zinc and Silver.
** Happy Holidays ** to all.
Positive thoughts that next year Franklin will perform and shower us with lots of goodness.
Ned...also, long for way too.......long
The article pasted in the previous entry on this board came up in some search results that I did on www.google.es. It mentions the Escala project as well as Cerro Rico and Grigoire De Rothschild.
I know we all are looking at FMNJ from an investment perspective...but it's good to know that Franklin really seems to care about making sure its mining operations don't harm the environment and impact the welfare of the people of Bolivia.
Ned.
FRANKLIN MINING's SOCIAL INVESTMENT IN BOLIVA
Original Spanish content link
http://www.publinetsrl.com/rev54_4.html
Google's English translation
http://tinyurl.com/222nc4
FRANKLIN MINING AND ITS SOCIAL INVESTMENT IN BOLIVIA
Franklin Mining Inc. Franklin Mining Inc.. y su subsidiaria, Franklin Mining Bolivia se encuentran en la etapa final de la fase pre operacionales de varios proyectos. And its subsidiary, Franklin Mining Bolivia are in the final stage of the pre-operational phase of several projects.
Las iniciativas de la compañía se han vuelto un factor de referencia para la implementación de políticas relacionadas a la minería en Bolivia; por ejemplo, la propuesta de trabajar en un riesgo compartido con la compañía minera boliviana COMIBOL (Corporación Minera de Bolivia) hace dos años, se ha convertido en una condición para los futuros contratos de operaciones mineras en el país, para cualquier compañía. The initiatives of the company have become a source of reference for the implementation of policies related to mining in Bolivia, for example, the proposed work in a venture with the Bolivian mining company COMIBOL (Corporación Minera de Bolivia) two years ago , has become a condition for future contracts mining operations in the country, to any company.
Recientemente, otras iniciativas, como el de conseguir la Licencia social, de aquellas regiones y comunidades afectadas por la implementación de trabajos mineros como requisito previo a las negociaciones con el gobierno, ha sido recibido de manera entusiasta en las entidades estatales, incluyendo al Ministerio de Minería, Ministerio de Relaciones exteriores y la Vice Presidencia, esto obedece principalmente a que estas licencias permiten empezar con una operación limpia y continuar con buenas relaciones entre las comunidades locales y la compañía Recently, other initiatives, such as that of achieving social license, those regions and communities affected by the implementation of mining operations as a prerequisite to negotiations with the government, has been received enthusiastically in state entities, including the Ministry of Mining, Ministry of Foreign Affairs and the Vice Presidency, and this is due mainly to allow these licenses start with a clean operation and pursue good relations between local communities and the company
La reciente firma de una carta de intenciones con la COB (Central Obrera Boliviana) que agrupa a todas las uniones del país, incluyendo aquellas lideradas por mineros, llena a la compañía de seguridad en lo referente al apoyo popular ganado para los proyectos y permite a Franklin disfrutar de un alto nivel de seguridad en sus inversiones, la compañía se prepara para una serie de viajes a las áreas en que planea operar y para reunirse con la Municipalidad, Autoridades Cívicas y Sociales de Potosí, para solidificar acuerdos con aquellos directamente envueltos The recent signing of a letter of intent with the COB (Central Obrera Boliviana), which brings together all the unions in the country, including those led by miners, filled to the security company in relation to popular support for livestock projects and allows Franklin enjoy a high level of safety in their investments, the company prepares for a series of trips to the areas where they operate and plans to meet with the council, Social and Civic Authorities Potosi, to solidify agreements with those directly involved
La compañía busca generar y mejorar las comunicaciones con ambos, trabajadores y comunidades, porque esta plenamente conciente de la corriente de cambio que ocurre en Bolivia, la experiencia ha sido muy positiva y el equipo de Franklin espera ansiosamente comenzar con programas de relevancia social donde ambos, la compañía y los trabajadores puedan compartir su conocimiento y experiencias para crear una mayor sinergia The company seeks to generate and improve communications with both workers and communities, because this fully aware of the flow of change occurring in Bolivia, experience has been very positive and the team looked forward Franklin begin with socially relevant programmes where both The company and workers can share their knowledge and experiences to create greater synergy
Es la orientación al trabajo con la gente de Bolivia y la obediencia a las leyes, con especial cuidado a mantener las buenas relaciones que han hecho que la compañía continue sin reducir sus intenciones de invertir, es más, el reciente encuentro entre el equipo técnico de Franklin, liderado por su Asesor General, Sr William A. It is targeting to work with the people of Bolivia and obedience to the law, with special care to maintain the good relations that have made the company continue without reducing their investment intentions, in fact, the recent meeting between the technical team Franklin, led by its General Counsel, Mr. William A. Petty y el Ministro de Minería a fortalecido la convicción de la compañía de que si se mantiene el respeto y obediencia a la ley, entonces se es bienvenido Petty and the Minister of Mining strengthened the belief that if the company maintains the respect and obedience to the law, then it is welcome
Claro, menores modificaciones a los planes de negocios y proyectos deben ser realizadas para adecuarlos a las leyes, desarrollos en leyes impositivas, sin embargo Franklin Mining Inc. Of course, minor modifications to the business plans and projects should be undertaken to adapt to the laws, developments in tax laws, however Franklin Mining Inc.. es una compañía que da la bienvenida al cambio y lucha por él Is a company that welcomes change and fight for him
Especialmente contando con el apoyo de M. Especially with the support of M. Grigoire De Rothschild y todos los bancos, entidades financieras y demás compañías que el lidera, habiendo autorizado 1.2 Billiones de Dólares Americanos para la implementación de los proyectos de Franklin proyectos en Sud América, esta es la razón principal para que la compañía se encuentre estudiando varios proyectos. Grigoire De Rothschild and all banks, financial institutions and other companies that lead, having allowed 1.2 Billion Dollars Americans for the implementation of projects of Franklin projects in South America, this is the main reason for which the company is studying several projects.
Es muy emocionante para Franklin Mining Inc, que posee la mina en operación más antigua de EEUU, estar negociando el comienzo de operaciones en el famoso Cerro Rico de Potosi It is very exciting for Franklin Mining Inc., which owns the mine in operation oldest of the USA, be negotiating the start of operations at the famous Cerro Rico de Potosi
La compañía se encuentra actualmente en la mesa de negociaciones conCOMIBOL, en la etapa final de las revisiones técnicas para este ambicioso proyecto The company is currently at the negotiating table conCOMIBOL, in the final stage of technical revisions to this ambitious project
La compañía también se encuentra finalizando los estudios para el proyecto Relaves Rio Negro, Pulacayo, Potosi, debido a la complejidad del producto y transporte, además de las consideraciones medioambientales el comienzo del mismo se ha retrasado, la compañía confía en tener una solución final en un corto tiempo The company is also completing studies for the project Relaves Black River, Pulacayo, Potosi, due to the complexity of the product and transportation, as well as environmental considerations the beginning of the same has been delayed, the company hopes to have a final solution in a short time
El positivo impacto medioambiental que se espera de la implementación de este proyecto se ha convertido en un tema muy importante en la compañía y el gran cuidado que se toma para asegurar máximos resultados The positive environmental impact is expected from the implementation of this project has become a very important issue in the company and that great care is taken to ensure maximum results
Franklin Mining se prepara para operar en la mina Escala, es la parte más rica de la parte de 2000 hectáreas y se tiene el permiso de trabajar en 500 Hectáreas, la mina esta pre preparada y existen estudios que demuestran reservas probables y probadas con contenidos de Zinc y Plata Franklin Mining is preparing to operate the mine Scale, is the richest part of the part of 2000 hectares and have permission to work in 500 acres, the mine is pre-prepared and there are studies that show proven and probable reserves with content Zinc and Silver
Un número menor de proyecto también se encuentra siendo revisado por la compañía, la estructura de estas y sus muchas conexiones hacen posible la intervención de varias maneras Fewer project is also being reviewed by the company, the structure of these and many connections make it possible to intervene in several ways
La orientación social de todos los proyectos, con beneficios en acciones para los trabajadores, programas de desarrollo social y la cercania con las personas envueltas en las operaciones de Franklin, como la obediencia de las políticas gubernamentales y la aproximación en general de los proyectos hacia las buenas relaciones con la gente Boliviana y el estado hace que la compañía confie en su futuro y en el éxito de sus labores. The social orientation of all projects, with gains in shares to workers, social development programmes and proximity with the people involved in the operations of Franklin, as obedience to government policies and the general approach of the projects to the good relations with the Bolivian people and the state makes the company trust their future and the success of thei
12-10 Email from A.S. Austin Company Inc.
From: Andrew Austin <asaustincompanyinfo@yahoo.com>
Date: Mon, 10 Dec 2007 11:04:03 -0800 (PST)
To: lina klingshirn <lina@asaustinco.com>
Subject: Invitation
Greetings to all of you,
Franklin Mining has completed Phase One of a complete make-over of the company web site.
We would love to invite you to visit the new and improved web site for at www.FranklinMining.com <http://www.franklinmining.com/>
photographs from the Escala will be available later this week as will several other improvements.
We hope you enjoy the new site.
Sincerely,
Lina Klingshirn
Shareholder Services
A.S. Austin Company Inc.
Direct:(619)334-5644
Fax:(619)599-8041
asaustincompanyinfo@yahoo.com <mailto:lina@asaustinco.com>
-
Franklin listed with other mining companies as attending this mining related event in La Paz Bolivia. Per English language translation, this event began last week and continues through this week.
Companies participating in FEXPOMIN II-2007
Spanish
http://www.fexpomin.com/participante.html
English Translation
http://tinyurl.com/3eypq8
Ned.
It's not 51%, it's 30% - see post #18191
Distribution of Escala $$ - 30% Franklin, 20% Inti (Mining Cooperative), and 50% Comibol
See posting #18191 on this board
http://investorshub.advfn.com/boards/read_msg.asp?message_id=24563891
Ned
Rothschild/other lenders visit to Bolivia and Argentina - any update on this?
Thanks for any info.
Ned
----------------------------------------------
LAS VEGAS, NV--(MARKET WIRE)--Oct 25, 2007 -- Franklin Mining, Inc. (Other OTC:FMNJ.PK - News) CEO, William A. Petty, and Gregoire de Rothschild, principal, GDR Privée, are pleased to announce that several lenders have requested permission to visit planned construction sites for Franklin's first two gas-to-liquid plants in South America.
Mr. Petty, Mr. Rothschild and representatives of several lenders are scheduled to arrive in Santa Cruz, Bolivia on November 9, 2007 and travel to Buenos Aries, Argentina on November 13. In each city, local project managers and engineers will present multiple energy projects and tour sites selected for constructing GTL plants. Prospective lenders will also have an opportunity to meet with local civil and political leaders.
GDR Privée, a New York investment bank specializing in debt and asset based financing, has negotiated preliminary terms and conditions for the provision of construction financing to each of Franklin Mining's two oil and gas subsidiary companies.
In making today's announcement, Mr. Petty added, "Franklin very much appreciates the support of Mr. de Rothschild and his work on our behalf with GDR Privée's domestic and international banking relationships. My goal is to identify the best possible solution to the problem of financing our energy projects in South America. Franklin's two oil and gas subsidiaries have done a great job of securing the opportunities and Mr. de Rothschild and I are exploring all options for bringing them to fruition."
About GDR Privée: In March 2007, Franklin Mining, Inc. announced an agreement with GDR Privée to assist in securing project financing for mining and energy agreements in Bolivia and an energy contract in Argentina. Additional company information is available by contacting GDR Privée, 16 W. 45th Street, 2nd Floor, New York, NY 10036, (212) 382-3240.
Franklin has no contracts with Comibol ???
Tuesday 11 September 2007
Spanish: http://www.elpotosi.net/2007/0911/p__3.html
----------------------------------------------------
English translation of article:
-------------------------------
http://www.google.com/translate?u=http%3A%2F%2Fwww.elpotosi.net%2F2007%2F0911%2Fp__3.html&langpair=es%7Cen&hl=en&ie=UTF8
Martes 11 de septiembre del año 2007 Potosí - Bolivia
Franklin Mining no tiene contratos con Comibol
La empresa Franklin Mining Bolivia no tiene contratos con la Corporación Minera de Bolivia (Comibol), según dio a conocer desde La Paz uno de los director de dicha entidad, Esteban Villca. La autoridad nacional señala que la mencionada empresa firmó una carta de intenciones para viabilizar algunos proyectos mineros pero no se consolidó ninguno y menos en el Cerro Rico como estaría anunciando la empresa a través de su página web.
Villca no descarta que en el futuro se puedan consolidar algunos contratos con la empresa pero a la fecha sólo existen buenas intenciones que, en todo caso, constituyen la voluntad para encarar operaciones mineras conjuntas u otorgar contratos de arrendamiento pero sólo eso. Recordó que también otras empresas extranjeras quieren consolidar contratos con la entidad nacional minera pero para ello se debe cumplir una serie de requisitos.
Distribution of Escala $$ - 30% Franklin, 20% Inti, 50% Comibol
http://www.elpotosi.net/2007/0906/s__1.html
Thursday 6 of September of the year 2007 Potosí - Bolivia
The children of the director of the Mining Corporation of Bolivia (Comibol) Grover Alexander consolidate a "tremendous business" in a concession of property of the Bolivians granted in 2006 the Inti Cooperative Limited, according to denunciation of the leader of the Civic Committee Potosinista (Comcipo), Vladimir Diaz. The civic representative indicated that, in date 28 of March of 2006, the children of the mentioned director, Pavel Grover Alexander Flores and Ivan Percy Alexander Flowers, they acceded to the concession "Scale" of 500 hectares and he authorized himself to them to form a society of risk shared with the company Franklin Mining Bolivia.
The authorization is signed by the father of representing of Inti both Limited, Grover Alexander, and his companions of directory, Guillermo Cortez, Federico Field of broom, Arming Limache, Esteban Villca and Mario Paulsen.
The representatives of the cooperative mentioned one consolidate a good business since in a concession of the State they will work with the silver of the investor and the benefits will be distributed of the following form: 50 percents for the Comibol, 30 percents for the investor and 20 percents for the cooperative.
If the Comibol had subscribed the contract directly with the Franklin Mining Bolivia it would be giving the 20 percent of the benefits to a cooperative that does not contribute anything and only receives money to count on the contract that would have been subscribed through the influence peddling.
The leader of conmina Comcipo to the members of the Comibol to review this Moral case that will be presented/displayed president Evo since it is not possible to be allowed that some citizens obtain gains at the cost of the government properties.
Only in the phase of exploration, the Franklin Mining Bolivia will invest 200 thousand dollars and it does not know itself how much for the operation and except which they will be the gains that obtain.
Already in the management, the children of the director of the Comibol obtained that he grants in quality of renting the concessions to them Don Carlos, Edgar, the Fride, Hidden, the Atium, Miguel, Mauricio, Molusco and Sirenita paying like rent rate the one percent on the net value of the production of minerals in a contract by ten years.
Director denies the raised denunciation
Grover Alexander indicates that their two children of legal age with their respective families are part of Limited the Inti Cooperative but that he does not have relation some with the same one.
Also it clarifies that the mine "Scale" was asked for the Comibol does five or six years, when was not director of the state miner, and, therefore, there is influence peddling no.
Remarca that the directory in the heat of solved to give 500 hectares of the concession Limited to the Inti Cooperative and 1,500 from the same deposit to the company Atlas Precious Metals.
Also it argues that previously another cooperative operated in the zone and had difficulties with the comunarios that solved to work directly with the foreign companies.
Due to it, the members of Limited Inti were expelled from the zone and chose to consolidate a contract of Risk Shared with Franklin Mining Bolivia.
Grover Alexander remarcó that just a month ago was notified to them that the contract is accepted and will be able to initiate the exploration process soon to face the operation of minerals.
FMNJ gets 30% of what's made for Escala...
...Inti Cooperative gets 20% and Comibol get 50%
See post #17859
Ned
Original Spanish news article on Escala
http://www.elpotosi.net/2007/0906/s__1.html
Jueves 6 de septiembre del año 2007 Potosí - Bolivia
LO DENUNCIA UN DIRIGENTE CÍVICO:
Hijos de un director de la Comibol hicieron un "tremendo negocio"
Los hijos del director de la Corporación Minera de Bolivia (Comibol) Grover Alejandro consolidan un "tremendo negocio" en una concesión de propiedad de los bolivianos otorgada en 2006 a la Cooperativa Inti Limitada, según denuncia del dirigente del Comité Cívico Potosinista (Comcipo), Vladimir Díaz. El representante cívico señaló que, en fecha 28 de marzo de 2006, los hijos del mencionado director, Pavel Grover Alejandro Flores e Ivan Percy Alejandro Flores, accedieron a la concesión "Escala" de 500 hectáreas y se les autorizó formar una sociedad de riesgo compartido con la empresa Franklin Mining Bolivia.
La autorización está firmada por el padre de los dos representantes de Inti Limitada, Grover Alejandro, y sus compañeros de directorio, Guillermo Cortez, Federico Escobar, Armando Limache, Esteban Villca y Mario Paulsen.
Los representantes de la mencionada cooperativa consolidan un buen negocio ya que en una concesión del Estado trabajarán con la plata del inversionista y los beneficios se distribuirán de la siguiente forma: 50 por ciento para la Comibol, 30 por ciento para el inversionista y 20 por ciento para la cooperativa.
Si la Comibol hubiera suscrito el contrato directamente con la Franklin Mining Bolivia no estaría entregando el 20 por ciento de los beneficios a una cooperativa que no aporta nada y recibe dinero sólo por contar con el contrato que habría sido suscrito a través del tráfico de influencias.
El dirigente de Comcipo conmina a los miembros de la Comibol revisar este caso que será presentado al presidente Evo Morales ya que no se puede permitir que algunos ciudadanos logren ganancias a costa de los bienes del Estado.
Sólo en la fase de exploración, la Franklin Mining Bolivia invertirá 200 mil dólares y no se conoce cuánto para la explotación y menos cuáles serán las ganancias que logren.
Ya en la gestión, los hijos del director de la Comibol lograron que se les otorgue en calidad de arrendamiento las concesiones Don Carlos, Edgar, El Fride, La Ocultada, Atium, Miguel, Mauricio, Molusco y Sirenita pagando como canon de arrendamiento el uno por ciento sobre el valor neto de la producción de los minerales en un contrato por diez años.
Director desmiente la denuncia planteada
Grover Alejandro señala que sus dos hijos mayores de edad con sus respectivas familias son parte de la Cooperativa Inti Limitada pero que él no tiene relación alguna con la misma.
También aclara que la mina "Escala" fue solicitada a la Comibol hace cinco o seis años, cuando no era director de la estatal minera, y, por tanto, no hay tráfico de influencias.
Remarca que el directorio en pleno resolvió entregar 500 hectáreas de la concesión a la Cooperativa Inti Limitada y 1.500 del mismo yacimiento a la empresa Atlas Precious Metals.
También argumenta que anteriormente otra cooperativa operó en la zona y tuvo dificultades con los comunarios que resolvieron trabajar directamente con las empresas extranjeras.
Debido a ello, los miembros de Inti Limitada fueron expulsados de la zona y optaron por consolidar un contrato de Riesgo Compartido con Franklin Mining Bolivia.
Grover Alejandro remarcó que recién hace un mes se les notificó que está aceptado el contrato y podrán iniciar el proceso de exploración para luego encarar la explotación de los minerales.
Franklin Mining
La empresa minera de Franklin Mining Bolivia S. A. (una corporación boliviana) es una compañía subsidiaria de Franklin Mining, Inc. Llegó al país en 2004 con la finalidad de consolidar proyectos de extracción de minerales en diferentes regiones del país.
Inicialmente habría comenzado con el proyecto de riesgo compartido en el área de Mayaya en el que proporcionó el capital de operaciones.
Actualmente ya habría consolidado otros proyectos e incluso en las páginas web se habla de su participación en procesos de producción de plata en el Cerro Rico de Potosí.
El contrato con la cooperativa Inti Limitada comenzará con una inversión de 200 mil dólares para la fase de exploración en la que se definirá el tipo de concentrados de mineral que hay en la zona y los volúmenes aproximados.
En una segunda fase de consolidará la extracción de las cargas mineralizadas de la Mina Escala.
Escala - a news article on the Inti Mining Cooperative
Below is a translation of the news article in English. As with most web translations, it doesn't make complete sense to me. If someone knows Spanish, please translate the original spanish article (posted in next message here on iHub) and share with the rest of us. Thanks in advance.
GLTA. Ned
Thursday 6 of September of the year 2007 Potosí - Bolivia
THE DENUNCIATION A CIVIC LEADER
Children of a director of the Comibol made a "tremendous business"
The children of the director of the Mining Corporation of Bolivia (Comibol) Grover Alexander consolidate a "tremendous business" in a concession of property of the Bolivians granted in 2006 the Inti Cooperative Limited, according to denunciation of the leader of the Civic Committee Potosinista (Comcipo), Vladimir Diaz. The civic representative indicated that, in date 28 of March of 2006, the children of the mentioned director, Pavel Grover Alexander Flores and Ivan Percy Alexander Flowers, they acceded to the concession "Scale" of 500 hectares and he authorized himself to them to form a society of risk shared with the company Franklin Mining Bolivia.
The authorization is signed by the father of representing of Inti both Limited, Grover Alexander, and his companions of directory, Guillermo Cortez, Federico Field of broom, Arming Limache, Esteban Villca and Mario Paulsen.
The representatives of the cooperative mentioned one consolidate a good business since in a concession of the State they will work with the silver of the investor and the benefits will be distributed of the following form: 50 percents for the Comibol, 30 percents for the investor and 20 percents for the cooperative.
If the Comibol had subscribed the contract directly with the Franklin Mining Bolivia it would be giving the 20 percent of the benefits to a cooperative that does not contribute anything and only receives money to count on the contract that would have been subscribed through the influence peddling.
The leader of conmina Comcipo to the members of the Comibol to review this Moral case that will be presented/displayed president Evo since it is not possible to be allowed that some citizens obtain gains at the cost of the government properties.
Only in the phase of exploration, the Franklin Mining Bolivia will invest 200 thousand dollars and it does not know itself how much for the operation and except which they will be the gains that obtain.
Already in the management, the children of the director of the Comibol obtained that he grants in quality of renting the concessions to them Don Carlos, Edgar, the Fride, Hidden, the Atium, Miguel, Mauricio, Molusco and Sirenita paying like rent rate the one percent on the net value of the production of minerals in a contract by ten years.
Director denies the raised denunciation
Grover Alexander indicates that their two children of legal age with their respective families are part of Limited the Inti Cooperative but that he does not have relation some with the same one.
Also it clarifies that the mine "Scale" was asked for the Comibol does five or six years, when was not director of the state miner, and, therefore, there is influence peddling no.
Remarca that the directory in the heat of solved to give 500 hectares of the concession Limited to the Inti Cooperative and 1,500 from the same deposit to the company Atlas Precious Metals.
Also it argues that previously another cooperative operated in the zone and had difficulties with the comunarios that solved to work directly with the foreign companies.
Due to it, the members of Limited Inti were expelled from the zone and chose to consolidate a contract of Risk Shared with Franklin Mining Bolivia.
Grover Alexander remarcó that just a month ago was notified to them that the contract is accepted and will be able to initiate the exploration process soon to face the operation of minerals.
Franklin Mining
The mining company of Franklin Mining Bolivia S.A. (a Bolivian corporation) is a subsidiary company of Franklin Mining, Inc. Arrived at the country in 2004 with the purpose of consolidating projects of mineral extraction in different regions from the country.
Initially it would have begun with the project of risk shared in the area of Mayaya in which it provided the capital of operations.
At the moment already he would have consolidated other projects and in the pages Web Rico de Potosí is even spoken of his participation in processes of production of silver in the Hill.
The contract with Limited the Inti cooperative will begin with an investment of 200 thousand dollars for the phase of exploration in which the type will be defined of concentrated of mineral that are in the zone and the approximate volumes.
In one second phase of it will consolidate the extraction of the mineralized loads of the Mine Scale
Norel, I think the EDLT purchase of Franklin Oil & Gas, Bolivia is off the table and won't happen. Remember, the September 11th PRs on the purchase from both ELDT and Franklin indicated that the purchase agreement was tentative.
My rationale for the EDLT deal being off the table is from the content of the October 24th PR that says:
GDR Privée... has negotiated preliminary terms and conditions for the provision of construction financing to each of Franklin Mining's two oil and gas subsidiary companies.
The two oil and gas companies are Franklin Oil & Gas, Bolivia and Franklin Oil & Gas, Argentina. Per earlier PRs, there were to be two GTL build sites in Bolivia and one in Argentina (Tierra del Fuego)
Ned
Bios for FMNJ Exec Team
William A. Petty, President, CEO & Director
-- no bio was posted on the site I found the others on --
Jaime Melgarejo, Jr, Chief Operations Officer & Director
http://tinyurl.com/2x9q22
William M. Jackson, Chief Financial Officer & Director
http://tinyurl.com/ytle62
Kurt Spenkoch, Vice-President & Director
http://tinyurl.com/yom9wh
GLTA. Ned
A.S. Austin Email - here it is...
------ Forwarded Message
From: Andrew Austin <asaustincompanyinfo@yahoo.com>
Date: Mon, 08 Oct 2007 13:00:17 -0700 (PDT)
To: lina klingshirn <lina@asaustinco.com>
Subject: Fwd: Franklin Mining (Ltr fr the President)
Note: forwarded message attached.
Sincerely,
Lina Klingshirn
Shareholder Services
A.S. Austin Company Inc.
Direct:(619)334-5644
Fax:(619)599-8041
lina@asaustinco.com
----------------------------------
From: <snichols001@aol.com>
Date: Fri, 05 Oct 2007 11:16:50 -0400
To: <austin480@cox.net>, <asaustincompanyinfo@yahoo.com>
Subject: Franklin Mining (Ltr fr the President)
Andy,
Please make arrangements for the attached letter (from Bill Petty to Franklin Shareholders) to be distributed to your database after the close of today's market -- the letter is a .pdf ... can you send it as an attachment to an e-mail ... your msg can simply make reference to the first letter to shareholders from franklin's new president
If possible, can it be resent on Sunday evening as a followup
Plse advise if there are any problems
Thx,
Steve
----------------------------------
Click here for the letter from Mr Petty - http://tinyurl.com/3d5l9e
--------------------------------
Ned
I50 Lady, yes there were references to FMNJ, see my posts #17116 - #17120. In those posts, you'll find the actual text of the PRs that are on the Business News Americas - Latin America`s Business Information Leader website.
Ned
Pulacayo Tailings processing could be delayed because of this...
Mining output falls 5% in 1H07 - Bolivia
Published: Tuesday, September 4, 2007
Mining production in Bolivia fell 5% in the first half of the year due to depletion of mineral reserves and lack of investment, among other issues, local press reported.
The country is experiencing a drop in gold, silver and tin production, but state income remains high because of strong prices on the international market, mining minister Alberto Echazú was quoted as saying.
The reports indicate that sales revenues jumped from US$493mn to US$572mn in the period.
Another reason for the decline was renovation of a tailings dam at Potosí's Cerro Rico. Nearly 40 mining operations that deposit waste at the dam were forced to stop for the renovation, Echazú was quoted as saying.
Finance minister Luis Arce said the decline was also due to labor conflicts at the Huanuni tin mine and reduced gold output at Inti Raymi - which operates the Kori Kollo gold concession - and at Sinchi Wayra's lead-silver-zinc operation, according to the report.
http://www.bnamericas.com/story.jsp?sector=7&idioma=I¬icia=405558
Ned
Franklin mulling sale of oil & gas assets to focus on mining
Published: Monday, August 20, 2007
Las Vegas-based Franklin Mining (OTC: FMNJ) is looking at selling its oil and gas interests to focus entirely on mining, the company said in a statement.
The company said it is considering selling off its subsidiaries Franklin Oil & Gas Bolivia and Franklin Oil & Gas Argentina and will announce a decision on whether to sell in the next 30 days. Franklin has a 51% stake in each of the subsidiaries.
Franklin's main mining asset is the Cerro Rico silver project in Bolivia's Potosí state, a JV with state-owned mining company Comibol.
The company is also developing the Escala polymetallic deposit in Bolivia, also in conjunction with Comibol.
http://www.bnamericas.com/story.jsp?sector=7&idioma=I¬icia=403823
Cerro Rico produces 4,000t/d of ore - Bolivia
Published: Thursday, August 30, 2007
An average of 4,000t/d of ore is being mined at Cerro Rico hill in Bolivia's Potosí department, according to an official at Bolivia's mining ministry.
"Since a large part of the hill is under the control of private companies, separate mining cooperatives and other parties, the figures are approximate," the official told BNamericas.
Nearly 15,000 miners from 34 cooperatives extract minerals like silver and zinc at 400 sites on Cerro Rico at a value of 2.5mn bolivianos (US$322,000), according to figures from state mining company Comibol.
Bolivia's mining ministry is carrying out an evaluation of whether mining can continue on Cerro Rico without danger of collapse.
The hill hosts a number of mining projects, among them the San Bartolomé project operated by US company Coeur d'Alene Mines (NYSE: CDE), due to start production in January 2008 and produce 9Moz of silver in its first year.
In turn, Las Vegas-based company Franklin Mining (OTC: FMNJ) is looking at concentrating exclusively on its Cerro Rico silver project which is a JV with Comibol, BNamericas previously reported.
http://www.bnamericas.com/story.jsp?noticia=404891&idioma=I§or=7
Comibol looks at treating tailings - Bolivia
Published: Monday, August 20, 2007
Bolivian state miner Comibol is considering treating tailings that contain tin, silver and copper in Oruro department.
"The idea is to clean up environmental liabilities that could be used in production if they are processed with new technologies and not with the same techniques used previously," Comibol's ex-director of mining and metallurgical products, Saul Cabrera, told BNamericas.
Since minerals are trading at higher prices on international markets, "it is interesting to process those liabilities now and take advantage of prices really quickly," he said.
Specifically, Comibol is considering processing the San Miguel tailings in Oruro that contain high amounts of tin, silver and gold.
It is also looking at processing the strippings from San José and Itos that contain silver, lead and tin, Cabrera said.
The specialist says the idea is to use technologies such as hydrometallurgy.
In 2006, Bolivia's geological and mining survey Sergeomin finished the second phase of monitoring abandoned mines in 32 municipalities of La Paz department, nine areas of Cochabamba and two of Oruro.
The work showed that 24.4Mm3 of material had built up at the mine sites, weighing nearly 42.8Mt, the entity said in a report.
By Harvey Beltrán
http://www.bnamericas.com/story.jsp?noticia=403659&idioma=I§or=7
Franklin to mine Escala Pb-Zn-Au-Ag property - Bolivia
Published: Monday, August 6, 2007
Las Vegas-based Franklin Mining (OTC: FMNJ) is preparing to resume operations at its Escala property in Bolivia, the company said in a statement.
Franklin was granted Escala through a contract with state miner Comibol for US$200,000 and another US$200,000 in capital investments, the company said.
The US miner must also employ 20 locals to work on the project.
Escala is a 2,000ha property in Sud Lipez province within Potosí department that was mined for lead, zinc, gold and silver during Spanish colonial times.
Meanwhile Franklin is expecting Comibol to grant permission to mine the Cerro Rico silver project, also in Potosí.
http://www.bnamericas.com/story.jsp?noticia=402202&idioma=I§or=7
Getting ready to post a few PR's from Aug timeframe. Although they are older and mostly report info we've already seen via the FMNJ PR's, some do contain an extra tidbit or so of info - e.g., one of the PR's indicated that FMNJ is still awaiting COMIBOL approval to mine Cerro Rico - is this true - what do you all recall?
Ned
Investor Relations - A. Austin & Co. - New point of contact
Got the following email on Thursday.
Ned
From: <info@asaustincompany.com>
Date: Thu, 13 Sep 2007 13:42:33 -0700
To: <info@asaustincompany.com>
Subject: A.S. Austin Contact Update
Dear Shareholder,
I am writing to inform you that I have resigned from A.S. Austin Company and will no longer be working at A.S. Austin Company as of September 29th. I intend to move abroad to work with a charity organization prior to returning to graduate school. Over the next two weeks I will be training Lina Klingshirn, she will be assuming my role at A.S. Austin Company. Please continue to send all inquiries to info@asaustincompany.com. It has been a pleasure working with you and I wish you the best of success.
Sincerely,
Steven Becker
Shareholder Services
(619) 334-5644
Bolivia’s Mining Rollercoaster: Negotiating Nationalization
Written by Andean Information Network
Thursday, 16 August 2007
Article can be found here: http://tinyurl.com/23943y
Evo Morales became president with an electoral mandate to reclaim state control over the nation’s natural resources. For Bolivia’s mining sector, this means maintaining a balance between the interests of cooperative miners, attracting much needed foreign investment and increasing the State’s take on the earnings. This update on the nationalization of Bolivia’s mines is the third in a three part series on Bolivia’s mining sector from the Andean Information Network. All three are available at www.ain-bolivia.org
Bolivia’s cooperative mining union, FENCOMIN, has again demonstrated its formidable political power, forcing the Morales administration to guarantee its right to mine and to give them access to more lucrative mining areas -- apparent concessions to the new nationalization program. The MAS government is also negotiating a new tax plan which seeks to maintain foreign investment while giving the state a larger stake of the earnings.
Re-inserting the State
Beginning in October 2006, the Morales administration has taken measures to reinsert the state into the mining sector, including the May Day presidential decree giving state institutions such as the mining company, COMIBOL, greater control. The administration also seeks to increase the state’s share of the earnings in light of skyrocketing prices for Bolivia’s principal minerals: silver, gold, tin and zinc. The Morales administration has negotiated several times with the 50,000 cooperative miners, who supported him during the 2005 elections and who represent 80% of Bolivia’s miners, offering them concessions in his “nationalization” plan.
The Latest Conflict …and Agreement
Both sides reached a new agreement on July 20 after five days of roadblocks. The roads around Potosi, one of the largest and oldest mining centers, had been completely blocked by the cooperative miners. Five days earlier, police turned back 1,500 cooperative miners outside La Paz, as they prepared to march to protest a MAS proposal for the new mining code. The miners took issue with the proposal that all joint venture contracts and leases with COMIBOL, including those of mining cooperatives, must be renegotiated and approved by congress. The FENCOMIN miners said that President Morales promised them the new mining code would not include these changes. Furthermore, cooperative miners demand that the new constitution officially recognize their right to mine as “self-employed” miners.
The agreement reached on July 20, according to FECOMIN’s President, Andres Villca, responds to “ninety-eight percent” of their demands1 and will strengthen the already strong cooperative miners’ position in the mining sector, which includes private companies and the re-emergent COMIBOL as well. The agreement includes respecting areas where cooperative miners are working; extending the leases and shared-risk contracts that cooperative mining companies have signed with the state; a promise from the government to give access to richer areas of Bolivia’s mines to the cooperative miners;2 and a promise from the Morales administration that it will take steps to insure that the cooperative miners are fully recognized in the new constitution. Villca also indicated that the agreement recognizes the government’s obligation to protect mining areas from takeovers, a practice that cooperative miners have used in the past to gain access to richer veins and wealthier mines.
Depleting Mines: a “Time Bomb”
However, access to more mines and richer veins is still a largely unresolved issue between the government and the cooperative miners. The mines in which the cooperatives currently work are quickly becoming exhausted.3 According to the Mining Minister, Luis Alberto Echazú, at this time Bolivia is only exploiting 30 percent of its mines. A lack of investment over several years has prevented the exploration and opening of new mines. Without access to additional mines, the 50,000 cooperatives will have few places to earn a living while mineral prices are some of the highest in history. This situation has been described as “time bomb”4 which could explode into protests, roadblocks and mine takeovers if thousands of cooperative miners left without access to the minerals.
The Tax Debate
Pending issues in the Morales’ administrations attempt to reactivate the mining industry include a new mining code redefining the state’s ownership of mining operations and, most controversial, taxes on transnational mining companies’ profits. The proposed MAS tax plan is a 50-50 split on the profits, up from 35 percent, and the elimination of a sales tax credit that companies can currently apply to their income tax.5
An executive for San Cristobal Mines, an affiliate of the US Apex Silver Mines, expressed concerns over some other aspects of the MAS proposed tax plan.6 Vice President of the San Cristobal Mine, Geraldo Garret, said that while they were committed to remaining in Bolivia due to the large investment they have made and the potential for profits, he lamented that the company might be required to pay up to 70-90 percent of the profits if additional surtaxes are enforced.7 However, Minister Echazú questioned Mr. Garret’s concern for lost profits given that the proposed surtaxes would be applied only when earnings reach high levels.
In addition to the tax plan ex-Mining Minster, Jorge Espinosa, recently stated that the Bolivian mining sector is not sufficiently secure to make it an attractive choice for foreign investors. A point that Peruvian mining consultant, Walter Belaunde, emphasized when he offered the models of neighboring Chile and Peru who guarantee stable tax plans in the contracts they sign with mining corporations.8 The Morales administration insists that an updated mining policy would create secure conditions for foreign investors and regularly points out that guarantees already exist.
Environmental Concerns
While the Morales administration has said that environmental groups will play a role in policy development, environmental advocates remain skeptical. Given pressures from cooperative miners and private companies, many doubt that the Morales administration has the political will and capacity to implement a mining policy that offers greater environmental protection. At this point it is unclear how the new mining policy will offer such assurances.
El Mutún
In the midst of negotiating with the cooperative miners and debating mining taxes, the Bolivian government celebrated the signing of a contract with Jindal Power and Steel of India to begin the exploitation of the Mutún iron mine in the eastern department of Santa Cruz. Reportedly one of the largest iron ore deposits in the world, Jindal has committed to investing $2.1 billion in the next 10 years and will exploit half of the mine over the next 40 years. The Bolivian government estimates that when fully operational the state will receive over $200 million a year in revenues.
Huanuni
President Morales also signed into law the nationalization of the Posokoni tin mine in Huanuni, Bolivia’s largest tin mine and the sight of a massive conflict between cooperative miners and COMIBOL miners in October 2006. The initiative received mixed reviews. The signing was postponed a day after a cooperative miner from Huanuni tried to enter the government palace just before the ceremony carrying dynamite in his backpack.
Negotiating “Nationalization”
The dynamic of three major actors in the mining sector – cooperative miners, multi-national mining corporations and a re-emergent state - in a country where until recent decades the mines were its economic motor, presents major challenges as the Morales administration attempts to keep its electoral promises to recuperate the nation’s natural resources. Elevated mineral prices and potential profits create urgency on the part of all interested parties to upgrade and reactivate the sector as quickly as possible. This is especially true of cooperative mining interests who seek to maximize short-term profits rather than long term investment.
Clearly, a weak COMIBOL and lack of investment in the mining sector9 weakens the attempts of the Morales administration to implement fully its nationalization plan, a situation that the cooperative miners have not hesitated to exploit.10 Yet, in this respect Morales eludes the convenient label of “socialist” that so many western and even Bolivian journalists assign him. He has demonstrated a willingness to negotiate a “nationalization” plan that is pragmatic and, far from radical, that seeks partnerships between the state and private enterprise. Perhaps, a more radical plan would also be more responsive to environmental concerns. What remains to be seen is if President Morales will be able find a balance that lives up to his election mandate while keeping the cooperative miners sufficiently satisfied and attracting much needed foreign investment.
1 La Patria. “Tras negaciones: Gobierno garantizó áreas de trabajo y los contratos con Cooperativistas.” July 23, 2007.
2 This meets a longstanding cooperative miner demand and was the central issue that led to the October 2006 conflict at the Posokoni tin mine in Huanuni that left sixteen people dead and 115 injured.
3 For example in Cerro Rico, the historic silver mine in Potosi, there are currently over 16,000 cooperative miners extracting the little silver and zinc left in the mine. So much mineral and ore have been extracted over the centuries that some have warned that the mine could collapse at any moment.
4 La Razón. “La caída en los precios es un peligro por los cooperativistas.” July 29, 2007.
5 According to the 1997 Mining Code companies currently pay a Complimentary Mining Tax (CMT) which is a tax paid on the sale of minerals. The CMT varies between 1% and 10% depending on the mineral and the market price. Mining companies also pay a Corporate Income Tax (CIT) based on the net profits. The CIT is credited to the CMT. The CMT is like a “prepayment” of the income tax. For example, if a company pays $100 CMT and their CIT is $120 then they are credited $100 through the CMT and pay only an additional $20. If the CMT is higher than their CIT then companies pay the total amount of the CMT and do not pay an additional amount for the CIT. The Morales administration proposal increases the CIT another 10 percent and eliminates credit for companies when they pays the CMT. So, according to the proposal companies would have to pay both the CMT and the full CIT. Furthermore, the proposal expands the minerals and metals included in the CMT to include previously excluded ones such as iron, copper, antimony, and bismuth. Ref. Ley 1777: El Código Minero, Titulo VIII, Capitulo III, Art. 100.
6 San Cristobal is in the process of developing a large open pit silver and zinc mine in the department of Potosi. They own 65 percent stake in the mine while Japan’s Sumitomo Corp. holds the other 35 percent. The say they will be investing over $700 million in the mine which the company describes as one of the largest silver deposits in the world and which has just come on line. Reuters. “Apex produces silver concentrates at Bolivian mine.” August 7, 2007.
7 Reuters. “Bolivia’s San Cristobal concerned about mining taxes.” July 27, 2007.
8 La Razón. “La minería tiene pocas opciones.” July 27, 2007
9 See previous memos “Mining Policy in the Morales Administration: Reactivation and Conflict. Parts I and II.” The mining bust of the mid-eighties that led to the firing of 40,000 COMIBOL miners and the neoliberal economic policies of the last two decades that Bolivia implemented and formed the basis for the current mining code have left COMIBOL a shell of its former self. The political and social instability of recent years and a lack of access to the sea have also added to Bolivia’s problems in attracting the high levels of foreign investment.
10 Many see the cooperative miners as sharing many of the same interests as corporate mining companies. For example, both want a limited role of COMIBOL and the State, and both want to limit the taxes on their earnings. However, most Bolivian based cooperative miners are also interested in limiting the amount of access that foreign companies have to Bolivian mines and have resisted the presence of foreign operations; at times attempting to take over mines or parts of mines where foreign companies are working. Yet, they also know that foreign investors can bring needed upgrades in technology and equipment.
Last Updated ( Thursday, 16 August 2007 )
© 2007 Andean Information Network