Bolivia won't seize silver mine: Coeur

By Steve James

NEW YORK (Reuters) - The head of Coeur d'Alene Mines Corp. (CDE.N: Quote, Profile, Research, Stock Buzz) said on Wednesday that the Bolivian government has assured the company it will not nationalize its $135 million San Bartoleme silver project there.

But foreign mining operators can expect to pay higher taxes as La Paz moves to extract a bigger share of the mineral wealth of the Andean country, Chief Executive Officer Dennis Wheeler told the Reuters Global Mining and Steel Summit in New York.

He also blamed the recent 8 to 10 percent drop in Coeur's stock price on "overreaction" by Wall Street to fears Bolivia might seize foreign-owned mines.

Last month, new Bolivian President Evo Morales said the nationalization of the energy sector was "just the start" -- sparking fears that foreign mining companies would be appropriated.

However, Vice President Alvaro Garcia later said that although the government would have a larger role in the industry, he ruled out a nationalization similar to that in the oil and gas sphere.

"There was more hype attached to nationalization in Bolivia following presidential comments about the oil and gas sector than is warranted," Wheeler told Reuters journalists.

"We are not concerned about our investment in Bolivia," he said, adding it is worth $135 million.

Pressed on the source of his optimism, Wheeler said the Bolivian mining minister had recently visited the San Bartolome silver mine project and wrote to the company saying the country has no intention of nationalizing it. In addition, he said Coeur has strong support from Bolivia's mining unions.  Continued...