Pan American Silver Corp. (TSX:PAA) said Tuesday the Bolivian government has no official plans to seize control of its San Vicente mine.
Last week, several senior Bolivian government officials were quoted in media reports saying the government was considering taking control of several mines that it had previously run.
Although San Vicente was not specifically named, the silver mine was operated by the Bolivian state mining company, COMIBOL, between 1972 and 1993.
Today, Vancouver-based Pan American operates the mine under a joint venture agreement with COMIBOL.
Last year, the mine produced more than three million ounces of silver, or 12% of the company’s total silver production.
Pan American spokesperson Kettina Cordero told Business in Vancouver Wednesday the Bolivian government has expressed no plans to take control of San Vicente.
On top of that, the local union at the mine continues to support Pan American.
The Bolivian minister of mines assured San Vicente’s union last weekend that, as long as the workers opposed nationalization of the mine, the government would stay out of the way, Pan American said.
Still, the government’s final position is unlikely to be clarified until May 1, which is a national holiday and Labor Day in Bolivia.
In recent years, Bolivian President Evo Morales has used the holiday to announce the nationalization of foreign-owned firms.
At press time, the company’s shares were up $1.33 to $36.21.