He's a liar:-)
GOLD MINING IN BOLIVIA
Bolivia is the New Frontier for the world
's exploration companies.
Although it is traditionally a mining
country, knowledgeable professionals
estimate that only 10 percent of Bolivia's
vast mineral wealth has been exploited.
For instance, the country's famed Cerro
Rico de Potosi silver mine has operated continuously for
more than 400 years and has yielded more than 3,000
million ounces of silver. But it is felt that the location may
contain a similar amount of silver as disseminated ore
amenable to modern mining techniques.
While Bolivia has been known for its silver, and tin,
deposits, limited exploration has demonstrated that the
country also has the potential to become a world-class gold
producer.
ABOUT THE COUNTRY
Bolivia is a democratic republic with a President,
Congress, and Supreme Court. The country encompasses
424,200 sq. mi. in west-central South America and the
majority of its 6.5 million people are of Inca descent. The
official language is Spanish.
Bolivia in 1985 enacted a New Economic Policy (NEP)
comprised of laws and actions which curbed runaway
inflation and transformed the country into the most stable
democratic economy in Latin America today.
Because of its extraordinary mineral wealth, Bolivia realizes
that successful mining operations will help to ensure the
country's continued economic reactivation.
It has therefore modified its mining codes, and developed
an infrastructure, designed to attract exploration companies
from throughout the world.
Politics and Investment Climate
Following the failure of the country's socialist regime,
democracy has existed since 1982 and, since 1985, the
government has followed a liberal, free-market economic
policy.
Mining companies are not only attracted by Bolivia's
favourable geology, but also by a good business climate
and mining laws which are at present some of the most
attractive in South America.
The government welcomes foreign investment in the mining
sector and, to that effect, in 1991 passed a number of new
mining, hydro-carbon and investment codes to stimulate
economic growth. The main provisions included:
A maximum tax on profits of 30%,
the lowest in South America ---
there is no tax if profits are
reinvested in the country;
Unrestricted import of mining
equipment and a low import tax;
No restriction on capital and profit
repatriation;
Equal treatment under the law
between foreign and domestic
companies; and
Reform of the land tenure system
along with a clearly codified mining
law and minimal bureaucracy.
There is now clear title directly
from the ministry of mines and
100% foreign ownership is
permitted.
The current president of Bolivia, until being elected in
August 1993, was the owner of the langest private mining
company in Bolivia (Comsur) and is thus supportive of the
mining industry. The country now has the lowest
inflation rate in Latin America (10%) after a period in the
1980s when inflation reached 23,000%. The currency is
freely exchangeable with the U.S. dollar. Because mining is
such a dominant part of the Bolivian economy, there exists
an excellent infrastructure of mining equipment,
experienced miners, and mining laws which guarantee
security of tenure.
Mr Metals |
