The Mineral Industry of Bolivia in 2009
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2009 Minerals Yearbook BOLIVIA U.S. Department of the Interior September 2011 U.S. Geological Survey THE MINERAL INDUSTRY OF BOLIVIA By Steven T. Anderson Bolivia was estimated to have produced about 6% of the by about 11% (and ranked second); and the mining sector grew world’s total mine output of tin and silver during 2009; 4%, by 9.9% in terms of its real value of production and was the of zinc; between 2% and 3%, of lead; about 2%, of antimony third-ranked sector. The real value of production of mineral and tungsten; between 1% and 2%, of boron; and slightly fuels appeared to decrease by 13.5% during this same timeframe below 1%, of bismuth. Bolivia was the leading exporter (by (Ministerio de Minería y Metalurgia, Bolivia, 2010b, p. 43; way of pipelines to Argentina and Brazil) and the third ranked Instituto Nacional de Estadística, undated a). producer of natural gas in South America. Tin, some antimony, In 2009, the total labor force employed in mining was and small amounts of some other mined minerals were refined estimated to be about 65,100 workers compared with a reported or further processed into mill products in the country but most figure of 62,218 in 2008. Of these workers, an estimated were exported in crude form (ores and concentrates) by rail to 51,900 were officially registered with a cooperative through ports on the coasts of Argentina, Brazil, Chile, and (or) Peru and the Government compared with 49,890 in 2008; 5,550 were then shipped further on to processing facilities located in Asia, estimated to be employed by medium-scale mining companies Europe, and North America (table 1; Angulo, 2010; BP p.l.c., (private or joint ventures with state-owned Corporación Minera 2010b, p. 24, 30; Brooks, 2010; Carlin, 2010a-c; Guberman, de Bolivia [COMIBOL]) compared with 5,138 in 2008; and at 2010; Ministerio de Hidrocarburos y Energía, Bolivia, 2010, least 2,450 small-scale and artisanal miners were estimated to p. 17; Ministerio de Minería y Metalurgia, Bolivia, 2010b, be working in 2009, which was the same number as estimated p. 47-48, 53-55, 64-65, 125-126; Shedd, 2010; Tolcin, 2010). in 2008. In 2007 [the latest year for which these data were available from the Instituto Nacional de Estadística (INE), Minerals in the National Economy Bolivia], the total number of employees in the entire mineral industry of the country was about 72,400 (Instituto Nacional According to preliminary estimates, the value of output de Estadística, Bolivia, 2009, p. 286; Ministerio de Minería y of the mineral industry of Bolivia accounted for about 13% Metalurgia, Bolivia, 2010b, p. 59). (approximately $2,300 million1) of the country’s gross According to the Ministerio de Minería y Metalurgia domestic product (GDP) in 2009 compared with about 14.2% (MMM), Bolivia, total investment in the mining sector was ($2,360 million) in 2008. The mining sector accounted for about about $176 million in 2009 compared with $342 million in 8% ($1,400 million) of the GDP and the mineral fuels sector 2008 owing to a decrease in private investment in the sector accounted for 5% ($880 million) in 2009 compared with about to about $127 million compared with about $304 million 8.55% ($1,420 million) and 5.7% ($940 million), respectively, in 2008. The remainder of investment in the mining sector in 2008. In 2009, most of the value of mineral fuel output was during each of these years was listed as public (Government) accounted for by the production of natural gas. Zinc led all the investment, which appeared to increase by about 26% during nonfuel minerals in Bolivia in terms of both the value and the this timeframe. Information about what proportion of total volume of production. The value of mined zinc was estimated to investment or private investment in the mining sector might be be about $680 million followed by that of silver ($610 million), attributable to foreign direct investment (FDI) did not appear tin ($260 million), and gold ($230 million). Ulexite (a boron to be available from the MMM for either 2008 or 2009, and mineral) led all the industrial minerals in Bolivia (not including other sources (that report FDI in the mining sector) appear as manufactured products, such as cement) in terms of both the if they could be more inclusive in determining investment in value and the volume of production, and the value of mined the sector (possibly including investment in mining services or ulexite was estimated to be about $13 million (International other investment related to mining in the country). According to Monetary Fund, 2010; Ministerio de Minería y Metalurgia, the INE, preliminary data indicated that total investment in the Bolivia, 2010b, p. 45, 48; Instituto Nacional de Estadística, mining sector was about $512 million in 2008 (the latest year Bolivia, undated b). for which these data were available from the INE), of which In 1990 prices, the real GDP of Bolivia increased by $478 million was FDI and $34 million was public investment. 3.36% in 2009 compared with that of 2008 and by 6.1% in Preliminary data from the Banco Central de Bolivia (BCB) 2008 compared with that of 2007. In 2009, the real value of indicated that FDI in the mining sector could have decreased to production by the industrial minerals products manufacturing about $92 million in 2009 compared with $480 million in 2008, sector (including the manufacturing of cement) increased by and the 2008 figure from BCB appears to agree with that of the 12% and led all sectors of the Bolivian economy in terms of its INE (Instituto Nacional de Estadística, Bolivia, 2009, p. 629; contribution to the growth in the real GDP of the country; the Banco Central de Bolivia, 2010, p. 29; Ministerio de Minería y real value of production by the construction sector increased Metalurgia, Bolivia, 2010b, p. 55). According to the Ministerio de Hidrocarburos y Energía 1Where necessary, nominal values have been converted from Bolivian (MHE), Bolivia, total investment in the primary activities of bolivianos (Bs) to U.S. dollars (US$) at an annual average exchange rate of the crude petroleum and natural gas sector (only extraction and Bs7.27=US$1.00 for 2008 and an estimated Bs6.97=US$1.00 for 2009. All values are nominal, at current prices, unless otherwise stated. exploration; excluding such activities as transportation and Bolivia—2009 3.1 refining) increased to $286 million compared with $281 million passing of subsequent regulations by the Government. During in 2008. Information concerning the relative amounts of total 2009, the Government drafted a new mining law to replace the investment in the sector that might be attributable to public Mining Code of 1997 (law No. 1777 of March 17, 1997), but the sources or private sources (including FDI) was not available in provisions of the new mining law were still being debated and the cited MHE publication, and data on Government investment no consensus had been reached by the end of the year. Although in the primary activities of the oil and gas sector did not appear such regulations may have still been in the legislative process to be available for 2009. According to the latest year of data throughout the year, the Executive Branch of the Government available from INE, preliminary figures indicated that total was able to issue Supreme Decrees (possibly to implement at investment in the primary activities of the oil and gas sector was least some of the provisions described in the articles of the new about $431 million in 2008, of which about $380 million was Constitution as soon as possible or to proceed more quickly FDI and about $51 million was public investment. Preliminary with some other Government programs or plans). Among data from the BCB indicated that FDI in the same sector Supreme Decrees concerning the mineral industry that were could have decreased to about $325 million in 2009 compared issued during 2009, Supreme Decree No. 29888 was issued with about $377 million in 2008. The 2008 data of the BCB on January 23 to authorize the transfer of all the ownership appear to agree with that of the INE, but reliable information shares of Pan American Energy LLC of Argentina in Empresa concerning investment in which additional activities related to Petrolera Chaco S.A. to the state-owned oil and gas company the production of oil and natural gas might be included in the Yacimientos Petrolíferos Fiscales Bolivianos (YPFB). Through BCB and INE data but not in the MHE data was not available the end of 2009, it was not clear whether Supreme Decree 29888 (Instituto Nacional de Estadística, Bolivia, 2009, p. 681; Banco had gone into effect, because Pan American Energy appeared Central de Bolivia, 2010, p. 29; Ministerio de Hidrocarburos y still to be pursuing international arbitration to receive Energía, Bolivia, 2010, p. 7-9, 14-15). compensation from the Bolivian Government for the almost For Bolivia, the value of trade in minerals may include complete nationalization of Chaco. Another Supreme Decree the value of some transportation and (or) pipeline services. in 2009 having to do with the mineral industry was Supreme According to preliminary data, the mineral trade balance (not Decree No. 0085, which was issued on April 18 to authorize including some trade of chemical substances that may have COMIBOL’s acquisition of the lands needed to mine the been mineral based) decreased to about $2.9 billion in 2009 El Mutun iron ore deposit. On December 7, 2009, the incumbent compared with about $4.4 billion in 2008 primarily owing President won a national election to another 5-year term, and to a decrease in the value of natural gas exports.