The legislation caused uproar and widespread protests, which resulted in the deaths of two people and left more than 60 injured.

Miners are unhappy because the current law forbids them to associate with private companies, domestic or foreign, depriving them of tax benefits.

Last week the government said it had discovered at least 42 illegal contracts between co-op miners and multinational firms.

The discovery led to the protests and the dismissal of the minister of mines, Mario Virreira.

In his place, Mines Minister Cesar Navarro’s first task will be to take an audit of the unlawful contracts.

Morales is renowned for opposing the industrialised world, especially the US and the power it wields over transnational corporations in Bolivia.

Upon taking office in 2006, the country’s first indigenous president raised mining taxes and nationalised the country’s main natural gas industry.

Morales also controversially passed laws in 2012 to protect the right of nature "to not be affected by mega-infrastructure and development projects that affect the balance of ecosystems and the local inhabitant communities”

Despite Bolivia being rich in mineral and energy resources, it remains one of the poorest countries in Latin America and the weakest economy in South America.

The newly formed commission is due to present the amendments in Parliament this week.