Parliament approved in October a plan to re-energize state mining company Comibol - the first fruits will be the restart of the Corocoro copper mine near La Paz - while other companies set to make an impact include Atlas Precious Metals and Nicomet. "This is the start of a new era of mining and metallurgy in Bolivia," says mining and metallurgy minister Alberto Echazú.

It is also a challenge Infantes at Vinto appears to Relish.The Company is planning to almost double tin output to 18,000 tpy. It is at the pre-feasibility stage of a project to install an Ausmelt furnace to take production to 1,500 tpm of tin metal from 2010 at a potential cost of $15 million, up from 800 tpm of 99.96-percent tin currently. It plans to produce 1,000-1,200 tpm of tin in 2008 and 2009 depending on the availability of concentrates. "We have the spare capacity to do this. The medium-term goal is to increase production from about 12,000 tpy in 2008 to 14,400 tpy from 2010. The government has a policy to stop the export of tin concentrates and process them at Vinto," he says.

Vinto's management is studying the production of a range of by-products including silver, gold, copper, lead, indium, antimony and bismuth, as well as pewter, an alloy of lead, tin and antimony. "We did an audit with state statistics agency INE and found evidence that Glencore did not declare a lot of the metal elements that it was exporting. We are looking at producing indium and will produce bismuth and silver in 2008," says Infantes. Vinto will also study the possibility of installing a zinc smelter if it proceeds with the Ausmelt furnace. "An Ausmelt furnace does not require a lot of people to operate it so the workforce could pass to work on a zinc smelter as an alternative that would open up a new market for zinc concentrate in Bolivia," he says.

The nearby Huanuni tin mine provides 60-80 percent of concentrates with the rest supplied by small-scale and co-operative miners, and some from Glencore subsidiary Synchi Wayra.

To increase tin production, Vinto will start purchasing concentrates from other countries and is close to concluding a purchase agreement with a gold producer in Brazil's Para state for a concentrate containing 75-percent tin. "We will start at 20 tpm in November, rising to 100 tpm within six months and then 300 tpm after a year," head of purchasing Enrique Saravia says. The company also hopes to conclude a toll processing agreement with Peruvian tin producer Minsur whose Funsur smelter and refinery in Pisco were damaged during an earthquake in August. "We hope to process 1,500 tpm," proclaims Saravia.

Vinto has been established as an autonomous company under Bolivia's ministry of mining and metallurgy, which, after paying income and regional taxes, can retain funds for investment. "Our financing depends on our sales and not the state. We have 450 workers, we are a sustainable company and that is why the government sees Vinto as a model state company," he says.

Since taking over the smelter from Synchi Wayra on February 9, the new administration has overhauled an electric furnace and two refractory furnaces to improve production processes. "There were a lot of technological difficulties initially as Synchi Wayra had not done any technological renovation and so we were left with a lot of damaged and obsolete equipment. It took us three months to refurbish the electric furnace and now it is in good condition and producing normally," he says. State control has allowed Vinto to diversify its sales base, with markets opened in China, Europe, Brazil, Mexico, Argentina and Chile.

The re-establishment of state mining company Comibol through a July 31 2007 law that was approved on October 2 means that it can now be involved in the whole mining production chain. One of its first actions was to restart the Corocoro copper mine near La Paz with the aim of producing 2,000 tpm of copper. Other potential projects include Cantori, Caracoles and Matilde.

Comibol's most important project is the development of the Huanuni tin mine in Oruro department where it plans to spend up to $40 million to modernise and mechanise mining, as well as exploit peripheral polymetallic deposits.

The Huanuni tin mine is planning to increase output capacity to 1,000 tpm of metal contained in concentrate from 2009 by upgrading and investing in new concentrator capacity, gm Roberto Montano says. Production of tin concentrate from Huanuni has been steadily increasing throughout 2007 to around 700 tpm of fine metal contained in concentrates from about 350 tpm in 2006, with higher production forecast in 2008 and 2009. "Our production will increase to 800-850 fine tpm starting from January," he says, adding that output will rise to 1,000 tpm of metal in concentrates a year later.

Having spent about $8 million authorized by the government on engineering work, mining equipment, and reactivating and rehabilitating the mine, the company plans to invest $30-40 million over the coming years to boost production. "Our main challenge is to increase production, so we are making a push to mechanize inside the mine by buying equipment such as scoops and perforating equipment to make it more productive," says Montano.

Huanuni has extended a development ramp into the heart of the Cerro Posokoni deposit to begin exploiting its lower levels, he says. Development work also includes exploring the deposit further and planning its future exploitation. "The deposit is truly a bonanza," he says. "We have started diamond drilling to determine the resources base of the remaining tin ore body and the polymetallic complexes and should have the results of this by mid 2008."

Improving efficiency is essential for the future of the mine, which boosted its workforce to 5,000 following a battle for control of the deposit between company employees and co-operative miners in October 2006 that left 16 dead. Part of that extra workforce is being used in the exploitation of the polymetallic deposits that surround the main tin ore body. "We have started mining the sulphide complexes to produce lead, silver and zinc concentrate. We produce about 130 tpm of concentrate that contains 20 percent silver, 6.28 percent lead, 35 percent zinc and 0.46 percent tin," he says.

Other projects close to development include the $29.7 million San Miguel project in Potosi that will produce tin, silver, gold and copper from almost 3.7 million tonnes of tails over six years, and Nicomet's La Palca project in Potosi that is due to start operations in 2008 and will treat ore of 5-50 percent tin content.

Bolivia is also optimistic that Atlas Precious Metals will start work on January 2 to bring the Karachipampa smelter in Potosi department on stream and develop a zinc smelter capable of treating 180,000 tpy of concentrates.

Source: Metal Bulletin