Bolivian Burglary? South American’s Greg Johnson on the Malku Khota Expropriation Threat By Kevin Michael Grace
The mining industry is preoccupied by three letters: CSR. They stand for corporate social responsibility, the idea that miners must care as much about local people as they do about their quarterly reports and share price. Greg Johnson, President/CEO of South American Silver Corp TSX:SAC, believes he has committed his company to CSR in Bolivia and that his commitment was recognized and appreciated by its indigenous people. To no avail, it would seem. After anti-mining protests escalated to near-terrorism, President Evo Morales announced July 10 he would revoke SAC‘s massive Malku Khota silver-indium-gallium project.
Malku Khota, located in Potosí Department, is quite a prize, even for Bolivia, a world leader in mineral production since the 16th century. According to a May 2011 NI 43-101 estimate, it contains indicated resources of 230.3 million ounces silver, 1,481 tonnes indium and 1,082 tonnes gallium. Inferred resources are 140 million ounces silver, 95 tonnes indium and 1,001 tonnes gallium.