The nationalised Mallku Khota mine could benefit Bolivia with $US 8.8 bn based in its deposits of silver, plumber, zinc and gallium. Bolivia won an international arbitrage against Canada's Andean Silver and will have to pay only $US18.7 million to the Canadian firm.
Although Argentina and Brazil expressed their intention of buying less volume of gas, the Bolivian government believes that there are opportunities. In the case of Brazil, the Hydrocarbon Minister, Luis Alberto Sanchez, said that the new conditions of the Brazilian market offer the chance to negotiate with private companies with the prospect of better prices. Gas exports to Brazil and Argentina reduce 16.7% since 2014. The government recognises that the development of new camp fields in these countries means strong competition, but it is confident in Bolivia's competitiveness. However, Bolivia's local governments and economic experts warned that the decrease in shipments would impact revenues, and they urged more investment in the sector.
Lynching, drug-trafficking and contraband are the main reasons why local inhabitants decided to take control of their towns surpassing the police.
Siemens began the construction of a training and service centre in Bolivia to support electric-energy exportation projects in the country. The German firm will invest $US21 million in the centre.
Petrobras is considering to buy less Bolivian gas, according to the Brazilian publication O Globo. The president of Petrobras, Roberto Castello Branco said that he wants to review the contract with Bolivia. Under the agreement, Petrobras is committed to buying 24 million cubic metres (Mcm) of gas per day, and there were moments that the shipments reached 30Mcm per day. Petrobras wants to buy only 15Mcm as the demand in the local market was low, and the company has enough reserves to cover the domestic market.
More than 20,000 tonnes of urea were sold this year in the local market, and the government expects that the amount will increase to 25,000 tonnes in 2019, said YPFB's president Oscar Barriga. The government spent $US953 million in 2013 to build a urea plant, with the aim of producing 2,100 tonnes per day. Barriga … Continue reading More than 20,000 tonnes of urea sold in the domestic market
An international arbitration court ruled that Bolivia should pay $US18 million to South American Silver Limited for the reversion of Mallku Khota mine in Potosi. South American Silver, a Canadian firm, demanded Bolivia in 2013 asking for $US 385.7 million in compensation. The government insisted that the Canadian company invested $US18 million and offered to pay only this sum. The international arbitration court ruled in favour of Bolivia in this case.
The pay of a second Christmas bonus proposed by the Government is still contested by the private sector and also by the main trade union in Bolivia. The Morales Administration confirmed that the Christmas bonus should go ahead because the economy will grow 4.61%. However, the private sector represented by the Confederación de Empresarios Privados de Bolivia (CEPB), rejected the initiative arguing that it will put the economy and jobs at risk. Meanwhile, the main trade union (COB) rejected all the government proposals to comply with the payment of the bonus and demanded its cancellation before 20 December.
The payment of the second end-of-year bonus must be fulfilled regardless who likes it or not, insisted the Work Minister, Andres Hinojosa. However, the private sector keeps its position of not paying the bonus as it considers it a "perverse decree" that impacts profoundly on revenues, according to the representative of private entrepreneurs, Wilfredo Rojo. Both sectors hope to reach an agreement that allows overcoming the impasse.
The drop in international oil prices from $US70 to $US53 between July and November this year will have a negative impact on the 2019 budget, warned the economic expert German Molina. The budget should be ready by October this year, but the Government has still not sent it for approval.