Bolivia on Thursday announced the nationalization of a silver and indium mine operated by a Canadian firm, the third major nationalization project within four months.

The Bolivian government has issued a decree formally authorizing the state to take over the mine in the southwestern town of Mallku Khota, Mining Minister Mario Virreira told a news conference.

The mine, valued at 2 billion U.S. dollars, produces indium, a rare metal used to manufacture flat-screen LCD TVs. It has been operated by a subsidiary of the Canadian company South American Silver (SAS) since 2007.

Virreira said the decree granted the state-run Mining Corporation of Bolivia exclusive rights to exploit the mine.

"No other non-state mining entity alone can carry out mining activity" at the site, said Virreira.

Protests against the mining activities of SAS broke out in May, and resulted in one death after the police stepped in. The government then revoked the mining company's license to end the violent clashes.

On July 10, President Evo Morales said that he had reached an agreement with indigenous residents to cancel SAS mining concession.

SAS said it was disappointed but has not made an official response.

The move, though directly caused by clashes between locals and the company, is also part of a nationalization wave Bolivian has seen in recent months, which analysts believe was intended to crank up revenue to enhance social welfare in the country.

Daniel Sanchez, president of the Bolivian Confederation of Private Entrepreneurs, said the nationalization process was a "bad omen" for investors, as it will "breed doubts over the investment environment and distrust of the government."

Bolivia nationalized a Swiss-owned zinc and tin mine in June and took over a Spanish-owned power company in May.

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