Coeur D’Alene, Pan American Fall on Proposed Bolivia Changes
Coeur d’Alene Mines Corp. (CDE) and Pan American Silver Corp. (PAA) shares plunged today after Bolivian President Evo Morales announced plans to expropriate mines amid protests for wage increases.
Coeur fell $2.68, or 7.9 percent, to $31.08 in New York trading, the most since May 20. Pan American slumped C$3.69, or 9.3 percent, to C$35.89 in Toronto.
State mining company Comibol may rescind contracts with companies including Coeur, Pan American and Glencore International AG, La Paz-based newspaper La Razon reported yesterday, citing Comibol President Hugo Miranda.
Since taking power in January 2006, Morales has seized gas fields, oil refineries, pension funds, telecommunications companies and Glencore’s tin smelter in a bid to increase state control over Bolivia’s industry. Morales told reporters in La Paz on April 12 that he plans to release a decree on May 1 overturning the privatization of state mining assets.
Coeur’s property rights are not the subject of expropriation, company spokesman Tony Ebersole said in an e- mailed response to questions.
“Our surface mining and silver production from San Bartolome is under way now as usual,” Ebersole said.
Pan American spokeswoman Kettina Cordero said in a telephone interview from Vancouver that the company hadn’t been notified by the Bolivian government. Glencore spokesman Simon Buerk declined to comment.
Protesters battled police, blocked roads and surrounded Morales’s residence in La Paz today as a general strike for higher salaries entered its eighth day, Radio Panamericana reported.
To contact the reporters on this story: Simon Casey in New York at scasey4@bloomberg.net; Alexander Emery in Lima at aemery1@bloomberg.net
To contact the editor responsible for this story: Jessica Brice at jbrice1@bloomberg.net
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