"Bolivian Gold: Financial Flows, Operational Actors, and Expansion Areas"
The new study by Fair Finance Bolivia entitled "Bolivian Gold: Financial Flows, Operational Actors, and Expansion Areas" examines the extensive growth of gold mining in Bolivia, especially in the department of La Paz.
Through a combination of literature reviews, statistical analysis, actor mapping, digital image analysis, and fieldwork in four gold-mining municipalities, the study provides a comprehensive understanding of the current mining context. Data from interviews and questionnaires with various stakeholders, including mining operators, local authorities, social organization leaders, and affected community members, illustrate the dynamics of gold exploitation in the Bolivian Amazon.
Key findings highlight that gold mining is overwhelmingly dominated by cooperatives, accounting for 99.6% of national production as of 2022. Factors driving this growth include rising international gold prices, limited employment opportunities, rural poverty, and a regulatory framework that favors cooperative operators due to political influences. This regulatory asymmetry has led to a significant increase in national gold production, displacing private operators and altering export destinations.
The study characterizes gold mining cooperatives in terms of size, equipment, and funding sources. It also explores illegal mining activities and gold smuggling, revealing that foreign capital from countries like China, Colombia, Chile, and Peru often partners with Bolivian operators. The shift from traditional riverbank mining to open-pit mining on dry land, due to the depletion of alluvial reserves, poses severe environmental risks beyond mercury usage.
Interviews confirm the prominent role of mineral trading companies, which not only purchase gold but also finance mining operations with the stipulation that the produced gold is delivered to them as payment. This practice is prevalent in the studied mining districts. Additionally, local communities play a crucial role by consenting to gold exploitation in exchange for assistance with employment, infrastructure, and basic services.
The study also highlights the weaknesses of governmental institutions, which have allowed illegal mining to proliferate within the gold production chain, particularly in the exploitation and commercialization phases. Unrecognized actors such as gold scavengers, female gold panners ("barranquilleras"), and well diggers ("poceras") operate invisibly within this framework.
In conclusion, the study identifies areas of gold mining expansion in the Amazon, which are likely to replicate the existing exploitation model seen in northern La Paz. This model is characterized by cooperative dominance and, in many cases, foreign financing, raising concerns about environmental and regulatory implications.
