Canadian mining company South American Silver said Friday it would seek at least 50 million US dollars in compensation from the Bolivian government if President Evo Morales decides to nationalize one of its concessions.

Felipe Malbran, head of Silver's Bolivian affiliate Malku Khota, told a local television that the firm was studying legal options should it lose its license to mine silver and indium in the Malku Khota region.

"We have so far invested in exploration some 16 million dollars and undertaken more than 8 million (dollars) in metallurgy and exploration that provided the data to develop the Malku Khota project, as well as lost earnings," said Malbran.

He said the mine's potential deposits are worth more than 2 billion dollars.

"The lost earnings ... will have to be part of the compensation demand, it's not just about recouping the investment," he said.

But Bolivian Vice President lvaro Garcia Linera said the administration estimated Silver's investments at Malku Khota totaled no more than 3 million dollars.

"Our calculations indicate 2 to 3 million dollars," said Linera, adding the figure would have to be verified.

Linera said that he was confident there would be no "legal battle" with the company and that the government had the "economic strength" to finance the exploration, exploitation and processing of the metals and minerals at Malku Khota.

On Tuesday, the Bolivian president decided to revoke the mining license granted to South American Silver's local subsidiary, putting an end to increasingly violent clashes between indigenous communities and mine workers.

The locals released several mine technicians and a police officer they had been holding hostage.