Vancouver-based South American Silver Corp. (TSX:SAC) is speaking out against Bolivian government statements that it intends to nationalize the company’s development-stage Malku Khota silver-indium-gallium project.
In the past week, the company has reported a hostage situation, the death of a mine protestor and a nationalization threat by Bolivian President Evo Morales.
In this morning’s statement, the company said it has not received any formal notice from the Bolivian government about the cancellation of its concessions and is “actively seeking clarification about the government’s intentions.”
Greg Johnson, president and CEO of South American Silver, said, “We strongly object to the government’s stated course of actions and we will pursue all legal, constitutional and diplomatic options.”
The company added that the nationalization threat “is surprising” and contends that it has the support of 43 out of 46 indigenous communities in the project area. The company says it has provided significant jobs for those communities and helped develop programs for job training, education, agricultural enhancement and water management.
The company says that since 2007, it has investment more than $16 million in the discovery and exploration of the Malku Khota project, and that ongoing exploration and any future mine development would result in up to 1,000 jobs for local workers.
“Mining is a key industry in Bolivia and this proposed action by the state sends a strongly negative message to potential investors and developers about the security of title for their investment in the developing country,” the company statement reads.
The company’s stock has lost more than half its value since last weekend as the company has reported conflicts with protestors and the nationalization threat.
