BOLIVIA: Social unrest and weeks of protest threaten lucrative mining and tourism industries

Record ID: 1529831

  • Title: BOLIVIA: Social unrest and weeks of protest threaten lucrative mining and tourism industries
  • Date: 13th August 2010
  • Summary: MILLUNI, BOLIVIA (FILE) (REUTERS) VARIOUS OF COOPERATIVE MINERS WORKING
  • Embargoed: 28th August 2010 17:18
  • Keywords:
  • Topics: Domestic Politics,Travel / Tourism
  • Reuters ID: LVA1JOSWD5BWP28NJN9IAK1UD2MV
  • Aspect Ratio: 4:3
  • Story Text: Weeks of anti-government protests have brought some of Bolivia's mines to a standstill and severely damaged its tourism industry as protesters continued with the 15th day of roadblocks on Thursday (August 12) in the southern Potosi region.
    Demonstrators have been demanding the government carry out development projects in the mineral rich region and resolve a territorial dispute with a neighbouring department.
    For almost two weeks now, resident have blocked roads linking Potosi with the rest of the country and cut off a major mining region, forcing chief international mines owned by American, Japanese and Swiss companies to halt production in southern Potosi.
    The unrest comes amidst government reports that mining exports soared to $1.14 billion US dollars in the first part of 2010; a 53 percent increase from the same period last year.
    On Tuesday demonstrators took over a key power station that supplies the Japanese owned San Cristobal mine, one of the world's top producers of silver, zinc and lead.
    Mining Minister Jose Pimentel confirmed on Wednesday that the mine had been forced to freeze production.
    "Members of the Rio Yura community have taken over the hydroelectric station in that region putting the operations of the San Cristobal mining company at serious risk. Because of the situation the company has halted production but not work as it is doing maintenance work. Nonetheless, this change in activity is causing the loss of nearly $2 million [US] dollars in daily exports," Pimentel said.
    The mine was no longer processing extracted mineral ore into concentrate and was unable to transport it to Chile where it is shipped abroad, costing the company and the economy millions.
    Some 15,000 small "cooperative" or independent mining groups had also been forced to halt production in Potosi's Mount Rico.
    But the economic costs went beyond the mining industry and were severely damaging Bolivia's growing tourism sector, possibly causing long-term damage on its image as a tourist destination.
    Dozens of tourism companies who conduct visitors through Potosi's tourist destinations - including its salt flats and the famed Mount Rico, the country's oldest mine - have been hit hard.
    For tourists, the blockade has scuppered well-laid plans.
    "We been trying to get into Potosi for weeks, I've been trying many times and, honestly, it's very frustrating because it really delays work and progress in the city and it's detrimental to their own well-being and they are not able to function," said American tourist Scott Ferguson.
    Dozens of tourists have been trapped inside Potosi by roadblocks, forcing Culture Minister Zulma Yugar to plead with demonstrators to let tourists through.
    "I want to appeal to Potosi's civic institutions to allow both Bolivian and international tourists to leave. They would have to try to take them to a roadblock, whether in Sucre or Oruro, and we are contacting the different embassies so that through them they can travel to their home countries," said Yugar.
    The crisis manager of Crillon Tours in La Paz, Judith Hoffman, said she was not as worried about the immediate economic impact as she was with the future.
    "The damage is economic, but it is not the most important thing because it is in the short-term and we can quantify the losses. But the greatest losses will come in the future when they sue us for not following through and completing what we programmed. And finally, and most importantly, the image of Bolivia as a tourist destination. People outside [the country] don't know and they think the problem is throughout all of Bolivia and not just in one department. We are already receiving information," said Hoffman.
    Crillon Tours, the largest tourism company in Bolivia, estimates that some 20,000 tourists have already decided not to come to the Andean country because of the two weeks of conflict.
    Tour companies have already cancelled tours to the breathtaking Uyuni salt flats.
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