Canadian miner Atlas Precious Metals (APM) is considering going to international arbitration over the reactivation of the Karachipampa polymetallurgical plant, APM's legal representative Betsy Miranda told BNamericas.
"If we keep experiencing the kinds of irregularities that we have up to now, it clears the path for us to go to international arbitration because we see more and more that we are right," Miranda said.
At the beginning of July, APM asked the Bolivian chamber of commerce, the local regulator, to dissolve its JV contract with state miner Comibol for the latter's failure to meet the agreements for the reactivation of Karachipampa.
Among APM's reasons for deciding to terminate the contract are the government decision to cash in the company's surety bond despite the fact that it expires in 2011, and the lack of land to construct sulfuric acid and zinc plants.
IRREGULARITIES
Among the reasons for going to international arbitration are the irregularitiessurrounding the hearing to create a tribunal and proceed with the dissolution of the contract with Comibol, according to Miranda.
"It's not that entity's responsibility to make observations about my ability to take on the process as APM's representative. The tribunal should have been appointed first and, once formed, it could have made the observation about the scope of the power given to me by the company," Miranda said.
The national chamber of commerce did not even allow the tribunal to be created, according to Miranda, who added: "Unfortunately, there is political interference at every level here."
In addition, just a few days ago, APM received the notice from Comibol giving the company a period of 90 days to move forward with the investments or it would cash in the US$850,000 surety bond.
"It doesn't make any sense - the warning arriving weeks after they have cashed in the bond. They are doing things backwards," she said.
The agreement Comibol signed with APM workers, guaranteeing their jobs, is another reason for going to international arbitration.
"It's disloyal of our partner [Comibol], guaranteeing jobs to workers without APM's knowledge or consent," she said.
APM has presented four plans for the plant's reactivation, with different shifts to start lead and silver production in July 2011.
"But they haven't accepted any of these plans. It's as if they don't want us to move forward with the project," she said.
In June 2005, Comibol and APM signed a JV agreement to reactivate the 51,000t/y plant in Potosi department. APM has a 65% share and the Bolivian state holds the remainder. Karachipampa will treat silver concentrates.
By Harvey Beltrán
"If we keep experiencing the kinds of irregularities that we have up to now, it clears the path for us to go to international arbitration because we see more and more that we are right," Miranda said.
At the beginning of July, APM asked the Bolivian chamber of commerce, the local regulator, to dissolve its JV contract with state miner Comibol for the latter's failure to meet the agreements for the reactivation of Karachipampa.
Among APM's reasons for deciding to terminate the contract are the government decision to cash in the company's surety bond despite the fact that it expires in 2011, and the lack of land to construct sulfuric acid and zinc plants.
IRREGULARITIES
Among the reasons for going to international arbitration are the irregularitiessurrounding the hearing to create a tribunal and proceed with the dissolution of the contract with Comibol, according to Miranda.
"It's not that entity's responsibility to make observations about my ability to take on the process as APM's representative. The tribunal should have been appointed first and, once formed, it could have made the observation about the scope of the power given to me by the company," Miranda said.
The national chamber of commerce did not even allow the tribunal to be created, according to Miranda, who added: "Unfortunately, there is political interference at every level here."
In addition, just a few days ago, APM received the notice from Comibol giving the company a period of 90 days to move forward with the investments or it would cash in the US$850,000 surety bond.
"It doesn't make any sense - the warning arriving weeks after they have cashed in the bond. They are doing things backwards," she said.
The agreement Comibol signed with APM workers, guaranteeing their jobs, is another reason for going to international arbitration.
"It's disloyal of our partner [Comibol], guaranteeing jobs to workers without APM's knowledge or consent," she said.
APM has presented four plans for the plant's reactivation, with different shifts to start lead and silver production in July 2011.
"But they haven't accepted any of these plans. It's as if they don't want us to move forward with the project," she said.
In June 2005, Comibol and APM signed a JV agreement to reactivate the 51,000t/y plant in Potosi department. APM has a 65% share and the Bolivian state holds the remainder. Karachipampa will treat silver concentrates.
By Harvey Beltrán
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