<p>In order to lift the country out of the poverty and dependency that harry South America’s poorest nation than its all-important mining industry, the Bolivian government asked the Jindal Steel & Power-an India's company for another $18 million in bank guarantees for not meeting contractual obligations. A similar amount was demanded in 2010 for not meeting commitments. <br />
Just as Jose Pimentel , the Mining minister and former miners’ union leader commented , it is a fact that Bolivia has been a mining country for more than 500 years, ever since the Spanish came and discovered the legendary wealth of Potosi. The cooperation with Jindal is derived from the thought that a stronger state working with private capital could develop the country’s economy for Bolivia is rich in iron ore mine( <a title="ore beneficiation" href="http://www.hxjq-crushers.com/53.htm">ore beneficiation</a> ) and it needs a partner to do itself a favour to make the best of its resources to obtain the biggest benefit. Yet, three years later, this dream is far from being realised. Relations between the government and the company have taken a turn for the worst.That’s the reason why the government has taken such an action that we mentioned earlier. <br />
However, at this moment, Bolivia encounters such a dilemma ,it cannot get rid of the mining business to be completely independent . What’s worse, it would bring so many social problems and create situations of rebellions because large groups of people would be directly affected.<br />
Now, the knotty issue is that, under the current mining code, Sumitomo is able to make use of “legal vacuums” that place no obligation on the company to pay for its water usage. What the government desires to perform is to enforce a more rational and efficient use of these resources while continuing the mining practices.<br />
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