ESM president resigns due to community pressure

The president of Bolivian state steel company ESM, Sergio Alandia, has resigned due to pressure from the community, ESM board member José Padilla told BNamericas. "Alandia resigned at the request of mayors from municipalities such as Puerto Suárez, Puerto Quijarro and Carmen who are calling for the company to supervise the development of the El Mutún project more efficiently," Padilla said. This week, the Puerto Suárez regional workers union, indigenous communities and the civic committee for Santa Cruz department participated in a march to protest ESM's lack of supervision of the project. On Tuesday (Sep 27), the communities took over ESM's facilities in Puerto Suárez and gave Alandia 24 hours to resign. "Now we're waiting to see who will replace him and we hope he or she will have the managerial experience to run the company and supervise the project," Padilla said. In 2010, ESM's board also called for Alandia to resign, since October 2009 marked one year with him as interim president, a position which legally lasts 90 days. The community also asked Alandia to step down at the time because he lives in La Paz rather than in Puerto Suárez, where the company is based. They also argued that Alandia did not define the structure of the company or prepare a report on his period of management. With Alandia's resignation, the community expects development of the project to resume, generating jobs and royalties for the region. ESM has been involved in the project for nearly five years, but as of now, it does not have the necessary structure to move forward. ESM and state miner Comibol have a JV with India's Jindal Steel & Power to develop 50% of the deposit and build a steel plant. El Mutun is located in a 65km2 area of Santa Cruz's Germán Busch province and has 40Bt in reserves grading 50% iron ore.