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May 1, 2006

Shades of Chavez, Mon., May 1, 2006, 3:57 PM

Is Bolivia, Venezuela and Cuba in more than just a free trade pact? Is Morales another Chavez, another Castro? Is this another blow-up in the works?

Now that Bolivia has declared intentions to nationalize its oil & as industry, is the mining industry next? If so, is Apex Silver in some trouble?

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In my opinion, this is another political hot-spot that is going to crank up the price of oil and precious metals.

Quoted from the AP article late today in which Bolivian President Evo Morales led his army into the Natural Gas Fields:

"The time has come, the awaited day, a historic day in which Bolivia retakes absolute control of our natural resources," Morales said in a speech from the San Alberto petroleum field in southern Bolivia to decree what he called a nationalization of the natural gas industry. The field is operated by Brazil's Petroleo Brasileiro SA in association with the Spanish-Argentine Repsol YPF SA and France's Total SA.

Time to say goodbye to investments in Bolivia as well as Venezuela and Cuba.

Posted by Posted by Bill Cara on May 1, 2006 03:58:26 PM | Category: Country Equities

Discourse

Right after the PDAC you mentioned zinc as an upcoming hot commodity. I did some research and settled on a junior Vancouver company with operations in Portugal. The minimal geo-political risk was one of the deciding factors.

By the way Bill, thanks for the tip (+30%)and your blog.

Posted by: Seamus [TypeKey Profile Page] at May 1, 2006 4:52 PM [link]

Or these ,investments, may be protected despite national opinion. A few critical thinkers have pointed out this situation as being nothing new, such as:
http://www.indybay.org/news/2006/05/1819179.php

Note reference to Iran, Venezuela and Bolivia.

Posted by: Keith [TypeKey Profile Page] at May 1, 2006 5:47 PM [link]

Seamus,is it EZM you mentioned? I have a minor position on that one too. I also have TGB, another Vancouver based mining company.
BTW,thanks Bill for your reply on my question in the previous post.

Posted by: SmallCapFan [TypeKey Profile Page] at May 1, 2006 6:04 PM [link]

SmallCap

Yes it is. Also does a little copper and silver too! Bill has pointed out the opportunity as well as the speculative nature of this type of jumior miner. I remain long.

Posted by: Seamus [TypeKey Profile Page] at May 1, 2006 10:39 PM [link]

Bolivia looks to take over mining as well:

http://news.yahoo.com/s/nm/20060502/wl_nm/energy_bolivia_nationalization_dc_2
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LA PAZ, Bolivia (Reuters) - President Evo Morales ordered the military to occupy Bolivia's natural gas fields on Monday after nationalizing the industry and threatening to expel foreign companies that do not recognize state control.
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"This is just the start ... tomorrow or the day after it will be mining, then the forestry sector, and eventually all the natural resources for which our ancestors fought," Morales told a jubilant crowd in La Paz's main plaza.
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Posted by: DollarBill [TypeKey Profile Page] at May 1, 2006 11:32 PM [link]

From Safehaven report: Bolivia does not produce much in the way of gold and silver, in fact their gold production is in decline. Zinc is their main product ...

Posted by: Seamus [TypeKey Profile Page] at May 2, 2006 11:49 AM [link]