Garcia Linera rules out nationalization of Minera San Cristóbal and guarantees its operations

150 150 Minera San Cristóbal S.A.

Vice-President Álvaro García Linera asked company executives not to be afraid, saying that it is intelligent for the Government to have companies investing and generating revenues for Bolivia.

La Razón Digital / Carlos Corz / La Paz

13:17/ July 27, 2015

In the community of San Cristóbal, Potosí, today Vice-President Álvaro García Linera has ruled out nationalization of mining company MSC. Furthermore, he guaranteed the company’s operations, saying that it generates revenues for Bolivia. He therefore asked the managers “not to be afraid” since socialism and communitarianism also imply having partners, though without the latter intending to take political power.

“Over the last couple of days, there have been threats in the sense of  cutting off the power supply, of seizing San Cristóbal. The Government will not permit this, the workers will not permit this, you (the company) are doing a good job, keep up the good work”, he said, referring to the civic conflict in Potosi and responding to the demands for nationalization of the company.

Minera San Cristóbal S.A. (MSC) is a company that extracts silver, lead and zinc in the province of Nor Lípez in Potosí. It is a subsidiary of Sumitomo Corporation, one of the leading business consortiums of Japan. The company generates 850 jobs and moves 150 thousand tons of rock every day to process 40 thousand tons of mineral.

Today, García participated in the celebrations of the anniversary of the community of San Cristóbal, where the mining operation is located. “I am here to reaffirm the commitment of the Government of Bolivia to Sumitomo, to give them guarantees, to tell them not to be afraid; we are socialists, we are communitarian, but we need you to work for us and to produce”, he pointed out.

Potosí receives 96 million dollars in mining royalties. He invited other mining companies to operate in Bolivia provided they protect Mother Earth, pay taxes, accept the profit distribution (40-60) and do not intend to take part in politics to take power.

“We are socialists, we are communitarian, but we are sufficiently intelligent to use foreign investment to generate resources, bring technology, pay taxes. The Government keeps the political power, the control, we will never permit foreigners to control the country; the Government controls the country”, he insisted in his speech that was broadcasted by state media outlets.

“Hopefully more (companies) will come, we need two or three San Cristóbals”, he said in the ceremony held in the community of San Cristóbal.