Reuters reported that Bolivia is renegotiating its agreement with an affiliate of Glencore as part of a push by the state to increase its control over the sector. The new contract would affect Swiss commodity trader Glencore's Bolivian subsidiary called Sinchi Wayra.

Mr Jose Pimentel mines minister of Bolivia said that "We are discussing with the company the possibility of shifting from a leasing agreement to a shared risk agreement with majority participation by the state.”

Mining unions are asking the state to recover silver, zinc, lead and tin mines currently operated by private firms. The move is in line with President Evo Morales' drive to regain control over key natural resources.

Mr Pimentel said that the talks with Sinchi Wayra would affect the Porco and Colquiri mines, two of the three main tin, lead, silver and zinc mines operated by the affiliate. The negotiations are in their final stage.

Glencore has operated in Bolivia since early 2005. The government nationalized its Vinto tin smelter two years later. It said that through its Sinchi Wayra subsidiary it can produce up to 205,000 tonnes of zinc concentrates 15,000 tonnes of lead concentrates and 6,000 tonnes of tin concentrates a year at its five Bolivian mines.

(Sourced from Reuters)