* License held by South American Silver Corp
* State to take control
* Peasant farmers had held workers hostage in protest
LA PAZ, July 10 (Reuters) - Bolivia's leftist president said on Tuesday he would revoke a mining concession from Canada's South American Silver Corp and give the state control of the site due to violent protests over the company's plans.
It is the second time in less than a month that President Evo Morales has given in to protesters' demands for him to step up a drive to increase state control over natural resources in the poor Andean country.
Violence flared last week at South American Silver's Malku Khota project after protesters held five Bolivian employees hostage to demand the Canadian company leave.
They hailed the president's decision as a definitive solution to the conflict in which one protester was killed and a dozen more injured.
"The company (South American Silver) put brothers, brothers-in-law, cousins and neighbors at odds with one another," Morales said at the presidential palace as he explained the