Friday, January 30, 2009

Bolivia To Take Controlling Stake In Glencore Zinc Smelter

Bolivia expects to take a controlling stake in a unit of Glencore International AG within weeks as it seeks to boost ownership over the country’s natural resources, Mining Minister Luis Alberto Echazu said.

Bolivia expects to conclude talks with Glencore over its Sinchi Wayra zinc and lead unit amid a drop in metals prices. He didn’t give more details on the size of the stake.

Bolivia's zinc output is expected to drop this year from about 345,000 tons in 2008. Bolivian revenue from all of its metals exports also will decline.

Sinchi Wayra has the capacity to produce 240,000 metric tons of zinc concentrate and 15,000 metric tons of lead concentrate annually, Glencore says on its Web site.

In 2007, Bolivia seized control of Glencore’s Vinto smelter. At the time, the government said it didn’t get a high enough sale price when it sold the smelter in 1996. The smelter was purchased by Glencore in 2005.

Source: Bloomberg

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