BNamericas reported that the Bolivian state is willing to go to international arbitration over the contract to activate the Karachipampa polymetallurgical plant.
Mr Hugo Miranda state miner Comibol's president told BNamericas that "We found out about this possibility through the declarations made by Jorge del Valle. If this is the way forward, we're prepared to go through with it."
Jorge del Valle is Canadian firm Atlas Precious Metals lawyer. In 2005, the company signed a JV agreement with Comibol to activate the 51,000 tonne per year plant to treat silver concentrates. APM has a 65% share and the Bolivian state holds the remainder.
However, in July APM requested the contract's dissolution, citing the government's decision to cash in the company's USD 850,000 surety bond and the lack of land to construct the sulfuric acid and zinc plants as its principal reasons.
A spokesperson from the mining and metallurgy ministry told BNamericas the state will go to any legal process without skimping on costs.
The spokesman said that "Arbitration can cost USD 2 million to 3 million and the company asked for USD 1 million which it has dropped to USD 850,000. The trial is more expensive than the compensation, so I believe an agreement will be reached."
Meanwhile, del Valle finds the government's reasoning difficult to understand.
The spokesman said that "In any case, this amount is a gift because about USD 5 million has already been invested. The offer was made so they would take it quickly. [The government] would rather go to arbitration where it will pay about USD 4 million than pay the USD 850,000."
If the matter goes to arbitration, the parties will split the costs of the process equally, according to the lawyer. He said that "But if it goes to judicial proceedings, which is what APM is hoping for, whoever loses will pay the costs, so the government is not considering that.”
Meanwhile, Miranda is waiting to find out if APM will accept the government's offer of USD 680,000 for the project, but del Valle said that the company is no longer negotiating.
(Sourced from BNamericas)
