Bolivian news agency ANF reported that Swiss metals trader Glencore International and the Bolivian government are advancing on an agreement regarding the Vinto tin smelter, nationalized last year and the company's Colquiri and Porco tin mines.

The newspaper quoted Mr Alberto Echazú mining minister as saying that we are wrapping up the details for a definitive agreement that covers all three operations and eliminates the possibility of mediation or other legal measures.”

He added that among the main points holding up the talks is the question of how much Bolivia will pay Glencore as indemnity for the February 2007 expropriation of Vinto.

According to the report, the government has convinced Glencore to accept the creation of 50:50 JVs with state miner Comibol at Colquiri and Porco but the two sides still must define a figure to compensate investments the Swiss company has made in all three assets.

The smelter produces 800 tonne per month of tin but aims to reach 1,000 tonnes per month this year through modernization initiatives. It is also undergoing a diversification plan aimed at treating other minerals such as zinc, copper and bismuth.