BOLIVIA:

SECRETARIA NACIONAL DE MEDIO AMBIENTEMINISTERIO DE MINERIA Y METALURGIA

Swedish Environmental Systems

SECTORAL ENVIRONMENTAL ASSESSMENT

OF

THE MINING AND INDUSTRIAL (MANUFACTURING) SECTORS

FINAL REPORT

June 1993

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CONTENTS

TABLE OF CONTENTS

TABLE OF ACRONYMS

EYECUTIVE SUMMARY

PART 1: INTRODUCTION

I BACKGROUND 11 PROJECT DESCRIPTION 2

A Terms of refemnce and obiectives 2B Methodology 2

PART 2: BASELINE DATA

I GEOGRAPHY 4II GEOLOGY AND MINERAL RESOURCES 4HII HYDROLOGY AND WATER RESOURCES 9IV AREAS OF ECOLOGICAL SENSITIVITY 10V DEMOGRAPEHCS AND SOCIO-ECONOMIC CONDMIONS 14

A The indigenous population 14B Soclo-economic data 15

PART 3: POLICY, LEGAL AND INSTITUTIONAL FRAMEWORK

I ORGANIZATION OF TlE STATE 16A Branches of government 16B Key ministies 16C Major legal instruments 17

II ECONOMIC POLICY 18m NATIONAL POLICIES, LAWS AND INSTIMONS FOR ENVIRONMENT 19

A General aspects 19B The National Envaomeal Law of 1992 20C The N-aional Secretariat for the Environment (SENMA) 21D The Departmental Councils for the Envinment (CODEMAs) and Departmental

Seaetariats for the Envirnment (SEDEMAs) 23E The National Environmental Fund (FONAMA) 23F The Bolivian Environmental Action Plan (PAAB) 24G Laboratory and monitoring capablities 24

IV ENVIRONMENTAL IMPACT ASSESSMENT 25

v USE OF LAND AND NATURAL RESOURCES 25A Planning and developmcnt in gcneral 25B Urban development 26C Rural development 27D Water resource management 27E Potable water and sanitation 28

VI EVRONMENTAL QUALITY 30A General aspects 30B Water quality 30C Solid waste management 31D Hazardous waste management 31E Pesticides 3 1F Air pollution 32G Selectng regulatory instnunents for environmental management 32H Human resources 33

Vll OCCITPATIONAL KFAI TH AND SAFETY 33A Legislation of occupational health 33B Institutional framework for occupational health 34

VII FOREIGN ASSISTANCE 36

PART 4: ASSESSMENT OF THE MINING SECTOR

I NDUSTRIAL STRUCTURE 37A Historical perspective 37B Resrucuiring of the national Corporcidn Minema de Bolivia 37C Major categories of hard rock mining 38

II POLICY AND LEGAL FRAMEWORK 44A Economiclegal reform and the mining sector 44B Mining and enviromnment 44C Responsible government institutions 45

m ENVIRONMENTAL CONCERNS 45A General aspects 453 Restructuring of the mining sor and its environmental consequences 47C Use of land and naural resources 48D Land degradation 49E Environmental pollution 49F Special conmers related to alluvial gold mining 59

IV OCCUPATIONAL HEALTH AND SAFETY 61A General aspects 61B Industrial mining 63C Small scale and coopmrativc mining 63

v SOCIAL lMPACTS 64A General aspects 64B Effects of mining on Andean social structures 65C Effects of mining on social structures in the Amazon 65

VI REGIONAL IMPACTS 66A Genral apects 66B Potosi area 67C OnLrv alea 71D Quechisla area 74E Boivian Amazon Basin 75

PART 5: ASSESSMENT OF THE INDUSTRLIAL (MANUFACTURING) SECTOR

I INDUSTRIAL STRUCTURE 76A Historical perspective 76B Major categories of industrial vzfivity 76

11 C POLICY, LEGAL AND INSTITUTONAL FRAMEWORK 80A Econonmc/legal reform and the industrial sector 80B industry 2nd eavironment 81C Responsible govemment institutions 81

m ENVIRONMENTAL CONCERNS 82A General aspects 82B Use of land and nanual resources 84C i and degradation 89D Fnvironmental pollution 89

IV OCCU1PATIONAL HEALTH AND SAFEIY 103A Genex;d apects 103B Working accidents 104C Chemical hazards 104D ui.Lie, lighting and ergonomics 105E Possiblties for improvement 105

v SOCIAL IMPACTS 106VI REGIONAL IMPACTS 107

A La Piz (Choqueyapu Basin) 107B El Alto (Altiplano Basin) 108C Onro (Lake Poopo Basin) 109D Cochabamnba 110E Santa Cruz 111

PART 6: RECOMMNWDED PRIORiTES FOR AN ENVIRONMENTALMITIGATION PLAN FOR THE MINING AND INDUSTRIAL SECTORS

I BROAD POLICY, LEGAL AND INSTITUTIONAL ISSUES - Clarifying andimplementing policies to promote sustainable development 113

A Segthening governmental and nongovermmental institutions 115B Overall planning for sound use of land and natral resources 116C Planning for new investments 118D Key program design and program implementation issues 121

11 MAJOR TARGETS FOR MMITGATION 125A Cross-cufag areas 125B The mining sector 126C The industrial sector 128

m RECOMMENDED PRIORrTY ACTIVrITES 129A Cross-cutting tlemes 130B Improved environmental management for major sourcs 130C Issues requiring fu study 131D Proposal for a regional pilot S:lvity - integraed environmental management

in the Onro region 131IV ANALYSIS OF ALTERNATIVES 132V ENVIRONMENTAL MANAGEMENT AND TRAINING 133VI ENVIRONMENTAL MONITORING OF RECOMMENDED ACIrVITIES 133

PART 7: rPT LIC PAR1 7ATwoN

I SEMINARS 134II CONSULTATIONS REGARDING THE FINAL REPORT 135

PART 8: APPENDICES (OVERVIEW) 136

1 List of EA peparers11 Bibliogaphym Program of seminars/list of consulted organizationsIV Technical appendices (overview; reports in two separate voluMCS)

TABLE OF ACRONYMS

CFD The Center of Forestry DevelopmentCODEMA Departmentai Councils for the EnvironmentCM The Council of MinistersCOMIBOL Bolivian Minig CorporationCONEPLAN Ihe National Coucl of Economy and PlnningCoRDECO Regional Development Corporation for CochibambaDINABSA National Directorate of Basic Sanitation, within the Minisay of Urban AffairsETAP Toe Environmental Technical Assistance Project of the World BankIONAMA National Fund for the EnvirommentGOB The Government of BoliviaHOHW The C-eneral Directo-rat of Hygiene. Occupational Health and WelfareIIMM Mme Investigation Institute for Mining and MetallurgyINSO Ihe National Institute of Occupational HealthJGF JapaDese Grant Facility of the World BankMACA Ministry of Rural Affairs and AgricultureMEC Ministry of Education and CultureMECE Ministry of Exportation and Economic CompetitivenessMEH Ministry of Energy and HydrocarbonsMPH Ministry of Public HealthM lM Ministry of Mines and MetallurgyMPC Mnistry of Planning and CoordinationMTvCPA Ministry of Transportaion. Communications and Private AeonauticsMUA Ministry of Urban AffairsNDH National Directorate of HydrocarbonsNEL National Environmental LawNGO Non-governmental organizationNIC The National Institute of ColonizationNSAR National Service of Agaian ReformPAAB Bolivian Enviromnental Action PlanSAGUAPAC Public Enterprise for Water Supply in Santa CruzSAMAPA Public Enterprise for Water Supply in La PazSEARPI Agency for Water Regulation in River PiafSEDEMA Departmental Secretanat for the EnvironmentSEMAPA Public Enterprise for Water Supply in CochabambaSENCAM National Service for Miniag CadastreSENMA National Secretariat for the EnvironmentTCU Technical Coordination Unit of FONAMA

SECTORAL ENVIRONMENTAL ASSESSMENT OF THE MINING AND INDUSTRIALSECTORS IN BOLIVIA

Swedish Envlronmental Systems

EXECUTIVE SUMMARY

I. BACKGROUND

This is a sectral Environmental Assessment (EA) of the rdning and industrial secuts in Bolivia. Itspurpose is to lay the foundations for more effective enviromental planning and management in thesesecors. The EA has been canied out by Swedslih Eivironmental Systems with finarcing from tLheSwedish govermment, in cooperation with the World Bank. The Study Team's lead institutional coun-tcrpart has been he National Secretariat for the Environment, although they have also worted closelywith the Ministry of Mining and Metallurgy. Many other public and private organizations participatedin this work.

The report Is organized in eight pats:

1. Intuduction2. Baseline data3. Policy, legal and institational famework4. Assessment of the mining sectorS. Assessment of the industrial (manufacturing) sector6. Recommneed priarities for an Environmental Mitigation Plan7. Public participation8. Appendices

Ibis EA presents an overall diagnosis of environmental conditions and identifies strategic priorities.The recommended pnorities for an Environmental Mitiutmion Plan include both brpad..wlicY le andinsti iaL..iaes and specific tar al mitigation In the mining and industrdalsectors. Of these priorities. the EA recommends a subset of activities to be given priority in futureactivities of the government of Bolivia, the World Bank and oaher international organizations. Theseactivities fall into three categories:

1. Improved envirommental management for major sources of environmental prblems;

2. Issues requiring further study; and

3. A proposed pilot project on integrated environmental management in the Oruor region.

In all these activities, there should be emphasis on building institutional capacity, developing consen-sual approaches with broad participation, and promoting more efficient use of nantal resources.

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1L BASELINE DATA

A. Geography.

Bolivia is located in the cener of the South Ameaican concinent, and covers a surface area of1,098,580 kM2. Briefly described. Bolivia's territory cra mpses three main physiographic regions: (1)the Andean region, covering about 28% of the teritory in the central west and southwest pan of thecountry; (2) the sub-Andean region; and (3) the casten lowlands, covering more thn 65% of thecountry's teritory. Because of the great diversity in topography and physiography. a wide range ofclimatic conditions are found in the country, ranging frm the dry, oold weather and sparse vegetatonof the Altiplano to the tropical rain forests of the eastern lowlands.

B. Geology aind mnnal resources.

The btdn±k of Bolivia can be subdivided into six major, north-south trending. structua units, fromwest to east. The major mineral deposits occur in bedrock in the mountains of the Altiplano. Thesedeposits contain a wide vanety of metallic elements. These may include En, lead, zinc, silver, antimo-ny, tungsten, copper, and bismuth, in different associations or in different parts of the same vein sys-tem. The veins are generally narrow and steeply dipping. These characteristics make the deposits lessamenable to large scale cxploitation and so have helped to maintain a low degree of mechanization inmost mining operations. In the vast Amazon area, extensive exploitation for alluvial gold is carried outin a number of plaes. Extrction methods vary fmm artisanal panning to undergrund exploration tolrge scale dedging operations.

Potential areas for futue miting represent about 30% of Bollvia's surface. Most of the Andes, particu-larly the areas of Precambrian bedrock in easter Bolivia. are characterized by a high density of mine-ral occwrences with a great variety of metals and good possibilities for finding new deposits. Also,very extensive potential mining areas for alluvial gold in the Amazon are still untouchedi

C. Hydrology and water resources.

The total amount of surface water annually available in Bolivia is estimated at about 317.600 millionn3 . This hydrological potential is distributed among three major waterheds with very unequal avail-ability of water per unit surface: (l) the Amazon basin covers 66% of the territory and contains 88%of the total amount of water. channeled through several major rivers; (2) the Rfo de la Plata basincovers 21% of the country's surface and represents 11.5% of the hydiological potential; and (3) theclosed basin or Altiplano occupies 13% of the surface of the country, but has only 0.5% of its surfacewater. rhere is only limited data on groundwater resources in Bolivia because most areas rely onsurface water. However, the cities of Santa Cruz and Oruro, as well as parts of the city of Cochabam-ba. rely on groundwater.

A particularly pressing problem in Bolivia is that many of the zones with intensive economic activitiescoincide with areas where water resources are very scarce. TIis is true in the entire Altiplano basin, aswell as in the region of Cochabamba. In boLh cases, this situation creates conflicts among the variouswater users.

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D. Areas of ecological sensitivity

43 areas have been declared natue reserves in Bolivia. The selection critena for designating thesereserves have been unreliable; the National Secretariat for the Environment is carying out a reevalua-tion with assistance tom the Global Environment Facility; the study will probably result in revokingthe designation of some reserves and modifying the size of others. Part of this work involves ecologi-cal mapping, with areas being ranked as having high, medium or low ecological sensitivity.

At the present time, the mrin and industrial sectos seem to pose relatively little threat to the pdi-mary areas of high ecological sensitivity, although there is scarce basellne data available. Mhe mostsensitive areas are located primarily in the lowlands (particularly In parts of the Amazon basin and inthe s.utheastern border areas towards Brazil), whereas much of the mining and industrial activity is inthe Aliplano region. he most immediate concem is alluvial gold mining in the Amazon. Also, in-dustnal activity in Santa Cruz and Cocdixbamba are of potential concem because these areas also draininto the Amazon. Another threatened ecosystem is the closed Altiplano Basin (including Lake Titcaca),which dnains most of the areas whefr hard rnck mining ocars.

E. Demographies and sodo-economlc condiUons

1. Socio-economic data

The 1992 national census gave a population figure of 6.3 million. About 45% of the population Uvesin the Andean Departments of La Paz, Oruro, and Potosi. The main growth area is the Department ofSanta Crz, which has expanded from about 15% of the population in 1976 to about 21% In 1992; this;ncrease partly reflects the migration from the taditional mining areas to the Eastern Lowlands. Theperrentage of Bolivians living in urban areas grew frm about 42% in 1976 to about 58% in 1992.Despite improvements during the last few years, Bolivia remains onc of the poorest counties in LatinAmerica. with a per capita income of US$ 700 in 1991. General development within the social sectoris very low. Ihus, the mortality rate is as high as 92 per thousand, nearly double the average rate forLatin American countries. Less than half of the population has aocess to safe water (47%) and onlyabout one third has access to adequate sanitaton (35%).

2. The indigenous population

The Bolivian population has its origin in the fusion of two fundamental ethnic componenTs: the indi-genous and the Spanish. Its distribuTion, evolution and mixing has been, and still is, influenced bygeogrphical, social, and economic factors.

The aboriginal inhabitants of the Bolivian territory have been grouped in three lnguistic groups: theAndean group, the Tupf-guaranf group, and the Araguaco group. To the Andean group belong pnmari-ly the Aymaras and the Quechuas, who inhabit the Altiplano, the Cordillera Oriental and the easternvalleys, and at present, tbrough the migrations of the last ten years, also the easen part of thecountry. The Urus and Chipayas, who live in the surroundings of Lake Poopo and are close to exdnc-tion also belong to this group. Ihe Andean population, traditionally making their living from farmingand mining, have been profoundly affected by the decline in the economy. which has substantiallychanged the socio-economic structure and obliged people to look for new altematives. One of these

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facors was the massive dismissal of workers at Uwh COMIBOL mines, which obliged many miners to"relocate" themselves into cooperatives where the way of working is very primitive and the life con-ditions vcry hard. Another alternative of these unemployed workers was to movc towards the noth-east and integrte themselves under precarious conditions in the exploitations of the alluvial gold depo-sits In ccrtain areas within the Bolivian Amazon basim

Another important factor, which direy affected the peasants, was the overvaluation of the cocapoducts in the international markeL Tbis reality caused thousands of fanilies, escaping from droughtand famine, to install themselves in the regions of Cochabamba and Santa Czuz. lhis massive migra-tion, In a short time, of the most diverse ethnic and social groups has had a very negative impact onthe environmenL The introduction of wage-earning work and the monetrization of human relations inthe most crude forms, have decomposed the traditional peasant socicy. It has also changed the oldagricltural practices, which protected the ecosystem. by changing to single crop cultivation, with suchconsequenccs as deforestation and the depletion of the soils.

Bolivian governmental docmments distinguish between "Bolivian Deasants". which denomination com-prises the Aymara- and Quechua-speaking people, and the rmarginal ethnic groups" of the eastern partof the country. These latter, also referred to as "oomadic and semi-nomadic indians", are the directdescendants of peoples who inhabited the country in precolonial times. They have their own socialorganization and a common language. They are confined to their own defined teritories. The totalpopulation of these gups is estmated to 130.000 to 200,000 pesons, belornging to 38 ehnic groups,of which 29 belong to the Bolivian Amazon basin.

EL POLICY, LEGAL AND INSTTUTIONAL FRAMEWORK

A. Organizadon of the governmenL

Bolivia is a republic with a democratic governmenL Ihe three branhes of govemment are the Execu-tive Branch (beaded by the President), te Legisative Assembly, and the Judiciary. The nationalgovernment coordinates with the governments of Bolivia's nine departments, each of which contains anumber of local government jurisdictions.

The next Presidential election will be held in June 1993. The new Administraion will take office inAugust 1993.

R_ Economic poUly.

The New Economic Policy, established in 1985, initiated a process of liberaizing Bolivia's highlyprotectionist economy. Changes included abolshing the extensive net of subsidies which had distortedthe economy and emphasizing exports as the base for sustained economic gowth. This policy hasbeen developed furter in the National Development Stategy, which stresses the importance of theprivate sector in econom-, labor, and management matters (and a corresponding hrinking of govern-ment's role in these fields), plus increased decntraization and modernization of the State.

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C. Polides, laws and Institutuons for envIronmenL

1. Geneal aspects

In 1992, Bolivia adopted a new umbrella environmental law and began developiag the Bolivian Envi-rommemal Action Plan tle law covers all aspects of environment, including environmental manage-ment, and advocates sustainable development and the use of economic incntives. In many cases. thelaw is unclear about insdtutional reponsibilites. Its requirements are very general and so implementa-tion will requir more detailed regulations. The World Bank is helping to prepare additional environ-mental laws and regulations through technical assistance provided under the World Bankes JapaneseGrant Facilty and the subsequent Environmental Technical AssisUnce ProjecL

Laws adopted In Bolivia before the new environmental law tend to have a sectoral viewpoint withlitte regard to envirnment. There are many overlapping ur inconsistent provisions in the laws and sothere are msulting confusions about legal requirements and institutional rsonsibilities. A number ofgovernmental and quasi-govenetal institutions have resoonsibilities concerning economic develop-ment, natural resource management and environmental protection.

The national envimonmenul law created an environmental coordinating body that has the status of aministry, the National Sectariat for the Eaviroment (SENMA); it also crcated regional counterpartsto SENMA that will opeate in each of the nine departments, and called for all ministries to establishenvironmental units. SENMA has broad responsibilities. much broader than its current resources canaGCOmmodte

The Congress has been drafting new laws on water, forestry and biodiversity. It is doubtful whetherany of these will be finalzed before fte upcoming elections. Land use planning is another area wheret.he govemment expects to prepare new legislation in the near-term; the environmental law calls for anOrdeoamiento Territorial.

2. Environaental quality

NatioL regulations exist on basic sanitation and controlling industial discharges into bodies of wate,but they have not been implemented IThe only active programs in these aa are potable water, sewerand basic sanitation services provided in some urban areas puRsuant to municlardiaces. heMiuisty of Urban Affairs is conducting a study in several cities to look at improving municipal wastemanagement facilities and possibly pnvatizing them.

SENMA is currently preparing regulations on environmental impact assessment and environmentalquality. pursuant to the new environmental law. It expects these to be ready for approval by mid-1993.

3. Selecung regulatory nstuments for envirnmental management

Regulators in both industialized and developing counties have shown a strong preference for quani-ty-based approaches (QBA) that require polluters to reduce the amount of pollution so that total conta-mination is restricted to a targeted ambient limiL This preference is likely to continue for practical

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reasons, despite the thcoretical superiority Of price-based approaches (PBA) th7 JIcly on market focto help allocate environmenta management responsibilities more efficiently.

Bolivia is at the eaiest stage of selecting regulatory instmments for enviromcal management. Mheinitial work on environmental quality regulations is focusing on quantity-based appmaches. with draftreuirements in areas such as waste management and air quality. The Government will also need toexplore possible price-based approaches - for example, whethe and how to establish a basic pollutioncharge that would generate revenues to help fund new environmental management efforts and perhapsencourage reduced pollution. A complicating factor in Bolivia is that introducing any change in thenational government's income from taxes and other financial mechanisms rquires an amendzLent tocxisting fiscal legislation.

4. Laboratory capacity and monitoring capabilities

Analytial competence to determixae ch&emcal and physical environmental parameters is nmecssary bottc determine baseline conditions and to monitor and evaluate sources of environmental contamination.Bolivia has many laboratories that are reasonably well-equipped. However, qualified staff are scarce,quality assurance is low, and operation and maintenance of laboratory facilities is inadequate. This isdue to a lack of resources for search and a poor market for selling analytical services.

Environmental monitorlng activities are limited to some communal waste water treatment plants andcertain wdl-un industries. Systematic monitoring by authorities is virtually nonexistent and regionalsurveys are only carried out sporadically in connection with intemational cooperation projects.

5. Human resoui:es

Environmental quality and management are relatively new issues in Bolivia, and consequently humanresource capabilties axe still limited. However. ther is a good core base of talent upon which to buildSome expertise Is available in vanous government departments and the private sector (usualy in thelarger, betr financed companies).

Within the nongovernment community, a large number of organizations (NGOs) are active Inaddressing the needs of the population In general. Even if the social issues dominate, an appreciablenumber of groups are active within the environmental sector. Sometimes such NGOs serve as coordi-nators for the cxecution of multidisciplinary studies, with financirg from abroad and including scien-tists from Bolivian universities and state organizations. A good example of such a program is thepioneer work carried out und the coordination of LIDEMA regarding the environmental situation inthe gold exploitation areas of northeastermmost Bolivia.

D. Occupational health and safety

Bolivia has a fairly elaborate legal and institutional structe for protecting the health and safety ofworkers. However, awareness of and compliance with these safeguards_vanes widely. Neither thegovemment of Bolivia nor foreign assistance organizations appear to give this area sufficient priority.

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IV. ASSESSMENT OF THE MNING SECTOR

A. Hlstory of mining

Minlng has been the totally dominant industrial activity in Bolivia since the Spanlsh arrived In tie16th cenury. Many hundred of deposits have been worked, containing a wide variety of metalicelements. Some of the fim deposits to be discovered are still beig exploite.L As noted above, there isaonsiderable potential for future mining both in the Ande (hard rock mining) and in the Amazonbasin (alluvial gold mining).

Mieral production in Bolivia declined from a peak of US$ 756 million in gross metal value in 1980to a low of US$ 139 million in 1986. Sincc then a recovery has occurred to USS 367 milllon in 1991.In spite of all problems, including the present low metal quotations on the world market, the export ofthe mining sector officialy amounted to more than 40% of the nation's total export value in 1991.

B. Major categories of hard rock minuing acdvity

In 1952. the government nationalized all major private mines u tM new Conporaci6n Minra deBolivia ( COMIBOL). Thus, the private sector was reduced to a number of smaller operations andsmall scale mining. Iibs private sector has come to be subdivided into Medium Mining and SmallMining. These designations are still in use even though the Medium Mining nowadays has surpassedCOMIBOL in size of individual operations as well as total output Mbe main categories of miningactivity include:

1. Sae mining (COMIBOL)

Soon after COMIBOL was formed in 1952. it became a major power in the Republic with widespeadsocial commitments and political fumctions. However, COMIBOL went into tecnicmal banknuptcy in1985 as a consequence of mis-management, worened by falling meta prices. All mines were closed,temporarily or permanently, and a far-reaching program for restructuing and private paflcopalon isnow being implemented with the support of the World Bankl This process has recenty gained momen-tum; over the next two years, al innes that ae not going to be closed pemanently will be offeredsuccessively for private participation through joint ventures or leases. COMIBOL preently employsabout 6,000 people.

2. Medium Mining (Minerfa NMediana)

Those private mining companies which meet certain citeria regarding production, financing andmanagement, are by law affilited with the Association of Medium Mines (Asociaci6n Nacional deMineos Medianos). With the weakening of COMEBOL, this group now represents the man forcewithin Bolivian industial mining, although with a smaller number of employees than COMIBOL.With the present low metal prices, only a very few of these companies are making a profit. The envi-ronmental awareness within this group of companies varies greatly. Companies with heavy foreiginvolvement are most likely to want to upgrade their environmental management

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3. Small Mining (Minerfa Chica)

The Minerla Chica is a beterogenous group of small enteprises ragng from industrial opeatonseating up to 200 tons of ore per day (and teby being bigger than the smallest enterpises within

the Minerfa Mediana) to vcry small family-bascd activities. A gncat majority of them are very smalland do not differ substantially from the cooperatives (discussed below) as regards organization or workmethods. The total number of employed persons within this sector amounts to about 7.000, with anadditional 3.000 quarrying for industnial minerals. This is less than one quarter of what it was tenyean ago.

4. Cooperatives

As an old tradition, but much extended after 1985. gpups of miners work small deposits or leftoversin mirnes wich have been closed down. The total numher of such workers is many times larger th2nthat of miners employed by the industy. These informal miners are most often members of a "co-opertive," a loose association of miners (and their families) which mainly serves the purpose ofacquiring the mining permit and selling the producL In fact, the tenn cooperative" is mainly a euphe-mism for the reckless variety of enterprise typical of a gold rush milieu

Usually, the "cooperativa mining takes place with complete disregard for occupational health andsafety as well as the ambient environment Ibe work conditions are primitive and dangerous, and theliving conditions very pecarious. Making improvements is not primarly a question of providing moreappropriate technologies as these are already a'ailable but seldom economically viable. Despite theconsiderable hazards, a significant number of workes in this sector are content with teir siuion; thetotal family income (including contributions fom cbildren who are waorig radher than going toschool) may be betr than hat frm a "normal" job. Few of lte people in this sitiation undestand-or cam afford the 'luxury" of thinking about - the grave risks to their health and future well-being.

h'Iis sector will only disappear when the accessible mineralizations are exhausted or through the de-velopment of alternative occupations. Until then. measures will have to be sought which can alleviatetie worst aspect of the situation vithout subsidizing or otrwise prolonging the unornnate cir-cumstances.

C. Alluvial gold mining

Alluvial gold mining is the exploitation of gold that occurs as dispersed grAns in the loose overburdenOr in poorly consolidated sediments. The gold originates from the bedrock, from which it has beenlibeated through glacial or weathering processes

Gold has been exploited in Bolivia since pre-Columbian times. Presently, intensive exploitation of goldfrom alluvial deposits occurs in two main areas withn the Amazon basin: along the Tipuani andadjoining rivers draining the Easter Cordillera; and along the Madera and Madre de Dios rivers closeto the frontier with Brazil In the a s part of Bolivia.

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lhese areas largely lack even basic infastucure and arc ou:sidc any public control to a great extenLHealth service is rudimentary and serious accidents are very common. By and large, environmentalquality and workers' ealth and safety are unknown concepts. A particular concern is the use of mer-ciry for tie amalgaastion of concetrates; tlis mercury Is heated off into the atmosphere for therecuperation of gold and in this way enters soils and waters. Another serious consequence is heavydegradation of the landscape by dredging, diversion of rivers. cutting tes, etc.

D. National policies, laws and Institutions regarding minnig

The recently amended mining code has almost no environmental provisions, and those very few arenot being implemented. Most mining activities are under the supervision of the Ministry of Mincs andMetallurgy (MMM). However, the actuai allocation of exploration or exploitation rights (and permits)is carried out by the Superintcndency of Mines, which is part of the separate Court of Mining. MMMplans to establish an Environment Unit and begin drafting environmental regulations, with foreignassitance.

E. Mining and envlronment

1. ener aspects

Boivian mining has caused, and continues to cause, a major negative impact on the naural as well asthe human environment. However, data on speofic impacts tend to be scatered and not well orga-nzled. The foilowing major impacts occur in BoUvia:

1. The consumption of scarmc or depletable natural resources: usc of land; removalt of res andminerals; and use of water (suface water. grand watr or fossid water).

2 Transformation of the landscape: open pit exploitation; dredging activities; tailing dams; wasterock disposal; and waste piles from heap leaching.

3. Contamination of surfac wates, gmundwatm and soils fiom: minr water; pcess water,tafilings in process water suspension; and leachares from old waste dumps or other sources.

4. Accumulation of solid waste: mine waste rck tailings from concentration operations.

5. Dust and gas emissions: parficulate matter, dust containing heavy metals tat can contaminatewater and soils; gases from smelters which may contaminate the environment and affect humanbealtbL

6. Occupational health and safety hazards (ofken extreme, especially in small scale and informalmining).

The mimng industry conmes approximately 315 minlion m3 of water each year. This amounts toabout 2% of the tot water resources available in the Altiplano, where the great majority of the minesare situated. Even though this may seem a modest percentage, much competition regarding scarce

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water resources occurs in many mining areas. The recirculation of water in the processing plaintsaverages only 10-20%.

Effluents fom mining operations cause widespread contamination of namral soils and waters. TlheStudy Team analyzed mine waters, brought to the surface through pumping or natural flow, at tendiffenrnt mines. In all cases, these samples exhibited high contents of one or several heavy metals(e.g.. copper, cadmium, arsenic, lead and zinc), values which were usually 10-100 tirres higher thanthe typical standards used for mining effluents in industrialized countries. Ihe same is true for processwaters from beneficiation plants sampled and analyzed at about 20 different sites. Such was oftencontain extremely high contents of heavy metals, as well as process chemicals such as xanthates andcyanide. lhe frequent lack of proper tailings dams, or deficiencies in their management, results in 30-50% of all waste waters with heir contaminations bWing discharged to nature. Another major problemsis "acid rock drainage," which is caused by oxidation of sulfides in tailings and waste rock, and thesubsequent formation of acid, metal-rich solutions through leaching by rain waler. All these souroes ofpollution pose major potential thueats to flora and fauna They also affect man more direcly by redu-cing the quality of wter for drinking, agricultu-e and recreation. and causing corrosion of steel andc1uncrete structures, such as water pipes.

The present annual production of solid waste from indus mining is approximately 5 million tons.of which about one half is discharged to tailings dams of satisfactory construction and managementThe remaining industial mining operations will have to be equipped with such facilities at an estima-ted cost of USS 6.5 million. The reclamation of old tailings, estimated to total about 104 million tons.implies a cost of USS 72.5 million. These estimates do not include solid waste cuaety beingmanaged by the aine owners (certain pnvate miiing companies), or wast originating from small scaleor arisanal operations.

The spread of mercury to nate is a major concern associated w ith alluvial gold operations in certainparts of the Amazon basin. It is difficult to quantify mercury a ion because of the uncon-troled exploitation and uncertainties about the extent of activities and rate of gold production. How-ever, it seems ikely that annually at least 25-50 tons of merctry are discharged to nature, and perhapsmore. Fish from the gold mining areas contain anomalous values of mercury and there are preliminaryindications of poisoning within the local population. Anodter serious environmental impact of alluvialmining is land degradation, particularly from dredging operations.

2. Recent trends

The trends in Bolivian mining during recent years, as seen from an environmental point of view, canbe summarized as follows:

1. The change from tin mining to the exploitation of lead/zinc/silver has meant increased use oftoxic process reagents such as xanthates and cyanide.

2. The economic recession has caused a decrease in the ability and determination of managementto control effluents and waste disposal.

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3. Ihe surge of innumerable new small scale and artisanal operations has given nse to seriousooblems, immnly of a social character but also affecting the fenvironmeL These activitics are

essentially outside any public or other control, with little or no concem for health and safety orthe environmenL More study is nceded to determine to what extent better financing or techicalassistance can improve conditions in this sector. and to what extent the sector is not viable eco-nomicafly and so should be assisted primarily thnrugh social services until the sector beginsshrinking as a rslt of economic improvements.

4. Closed opeations are usually left without any type of clean-up or and reclamation. oftenresulting in acid drainage and other problems. Mines being closed often means less pollution frommine water and tailings, but it usually also ends the maintenance of any existing tailings ponds.Another serious consequeoce is that closed mines often aact disoderly operations by 'coopera-tivistas".

S. The proximity of some mining areas to urban as (in some cases cities that have grown uparound mining) presents a variety of serious public hazards.

6. A positive development is the arrival In Bolivia of some foreign mining companies with ahigh degree of knowledge and standards in tecbnical and environmental questions. However, thereare also less responsible foreign iovests entering the scene.

3. Future impacts

A common argument In discussions about the environmental impact of mining in Bolivia is that mostmining occurs in mountainous areas where there is very little alternative use of resources. Ihis may betrue in some cases (if the question of preservation of the natual landscape as such is ignored), but inmost places there are other competing interes. These vary widely; some examples include: smallscale farming; severe conflicts between mining and cavil life (especialy in old nining cities like Potosiand Oruro, each with about 80,000 inhabitants); threats to tbe fish in Lake Poopo; and contaminationof drinking watr in La Paz from abandoned tailings. Anater major concer, of course, is the well-being of niners and their families.

It is difficult to forecast in any detail the extension. character and location of future mining venturesand their implied environmental impacts prior to carrying out exploraticn activities. However, thefollowing general directions may be given:

1. For the foreseeable future, the focus of conventional mining in Bolivia will continue to be inthe Altiplano and to a large extent in areas of previous mining activities. Ihe needed environmen-tal improvements in connetion with such operations are reasonably well known and it can beassumed that, with the introduction of new policies and teduniques, the problems can be managedin a satisfactory way. It may even happen that clean-up operations in certain old mining areas canbe combined with continued or reopened actvities. It is quite probable that large bulk mining inopen pits will eplace underground. selective mining in some areas.

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2. New possible areas for mining in the eastern part of the country (the Preambrian shield)could present new problems and possible conflicts with farming and ote interests. In general,these areas do not coincide with areas of ecological sensitivity and nature reserves. However, ascxplained above, the real extent of possible conflicts cannot be evaluated until at least basic infor-mation about a new deposit exists. Exploilation of mineral deposits In nature reserves should belegally prohibited; in this contex, it will be important to define clearly the boundaries of naturereserves.

3. Alluvial gold mining presents special pmblems. as noted above. Tbe areas of current activitywill probably remain the main exploitation ameas for the near future. However, one cannot totallyexclude the possibility that new deposits will be found in other parts of the Amazon basin, with acorrsponding spread of contamination and destucfion to new areas. An extensive lnventory of allpresent alluvial operations, with projections for future development and its environmental conse-quences, is an urgent task.

F. Occupational health and safety

The mining sector is estimated to employ 60.000 to 80.000 people, about 15% of them in industrialoperations and 85% in semi-mechanized or artisanal activities. Working conditions within te indus-tial sector range from good to poor, with the larger private compamies performing best. Conditions instate mines are deterioraing due to deficient management and iadequate resources. Investigations tenyears ago showed, for example, that the average rate of silicosis among workes in COMIBOL mineswas an alarming 11%; ere is every reason to believe that this serious situation persis. Activitieswithin the labor-intensive small scale and artisanal sto are characteized by hazardous health andsafety conditions and a general lack of formal employment rights or social insuance. The potentialpoisoning threat posed by the use of mercury in aluvial gold minig is a particular concer.

G. Soctal Impact

1. Genera aspects

The exportation of raw materals is Bolivia's nxost important source of foreign exchange. This econo-mic structure makes the country very vunerable io fluctuations in the pnces of raw materials on theinternational markeL Thus, the decrease in the prce of tin during the last decade has caused a drasticreduction in mine production and given rise to a social upheaval caused by mine closures and theconsequent unemployment of thousands of workers, plus a general economic recession

From the nationalization of the mines in 1952 up to 1985. when Bolivia!s new economic policy wasintrduced, COMIBOL played a fundamental role in the social as well as tl'e economic aspects ofBolivian mining. For example, COMIBOL provided social infrastructures such as schools and hos-pitals, and it disguised unemployment with administrative posts. This concentration of power gave riseto nepotism and generated an excessively large pubUc sector - a situation tht has caused major socialand economic distortions, fonring a myth of prospeity and stability around the nationalized miningcompanies.

The massive movement of workers out of the mining sector and into the infomal sector is a promi-

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neat development of the last decade. Before 1985, COMIBOL employed morc than 30,000 worke,which multiplied with their dependents, constituted about 150,00D people. A few years afterwards.COMIBOL had only 7,500 employees. Many unemployed miners went to the large cities, while othersmoved to the informal mining sector or the alluvial gold fields of the Amazon basin

Bolivia is today a county of free market economy. MTis shift in economic policy and the comingprivatization of COMIBOL are generating social problems that many miners are not equipped tohandle, either individually or collectvely. Instead of being part of a paternaistic system whereCOMIBOL maintained a (sometimes illusory) system of social welfare, they now find themselvessalaried - or often, unemployed - workers in the private sector. Trade unions have been qick toresort to public or privae violence to generate political presue- hese tensions are crating a criticalsituation to which there Is no clear solution. However, building up the private sector In mining couldeventnay offer one positive route out of the cycle of unemployment and underrmployment, if no adefinite solution.The informal mining sector, which includes coopeatives and artisanal mining, has grown substantiallysince 1985 and will increase even more as COMIBOL begins leasing some of its holdings to cooper-tives as part of the privatization process. This situation constitutes a social emergency of such magni-tude and gravity that it has to be regarded as the most critical social problem in Bolivian miningtoday.

2. Effects of mining on Andean social structs

The indigenous inhabitants of the Altiplano have significantly modified their culture and ways ofliving in order to adapt to changing cirumstances as Bolivian mining has evolved during the last fivecenturies Today, the population of the Altiplano xms part of the general economy of the country, butthey coatinue to experience impotant dcanges as a result of the shifting structure of mning.

There has traditionally been an intricate net of intrelationships betwecn Andan envirounental condi-tions and Andean culture. One of the main effects of mining on the surrounding culturl structues innearby communities and villages is that it has changed the typical values of individual ownersbip,expenence and commitments to the land. Tibs process began as farmers shifted their main occupationto mining, and accelerated as these miners were later obliged to sdl or abandon their land, eithertemporarily or permaneutly, in wesponsc to anging employment oppormuities in the mines, Miisprocess has often caused the break-up of the core family. As individua famiies must sell or abandontheir land, the woman's role may change from farming as a "compaiSeae to pusuiing activities in theinformal urban sector. In some cases, this means commuting into town each day to work as a steetmerchant; at other times, she may move to the city with part of the family.

3. Effects of rmning on socal structues in the Amazon

Most of the people involved in alluvial gold mining in the Amazon have migrated from other parts ofthe country. Many of them ae indigenous peoples from the Andes. There is almost no informationabout the impacts of alluvial gold mining on social sures in the Amazon, aside from generalimpacts on Andean social strucures. Sedentury communities of people who are indigenous to theAmazon are relatively small and few in number, and the Study Team found no information aboutimpacts on them.

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V. ASSESSMENT OF TIE INDUSTRIAL (MANUFACTURING) SECTOR

A. HiUstoria perspecdve

be manufacturing industry in Bolivia experienced a prolonged recession duing the 1980s. In 1991,the total production volume was still only 76% of that in the peak year of 1978. However, a clearincrease in production has occurred sice the extreme low (59% of the 1978 level) in 1985. The posi-tive development of the manufacturing industry ever since 1986 is demonst-ated by annual growthfigures higher than the GNP growth rate almost evcry year. For exmple, in 1991, the industry gmwthwas 6.6% as compared to a GNP gmwth of 4.1%. That same year, the contribution to the GNP by themanufacturirg Industry was 13.72%; this is sill rlatively low as a percentage of GNP. when com-pared w-ith the mean with the mean value for Lain America, about 25%. Mme most expansive branchof the industry has been the food industry, rising from a share of 39% in the period 1972-79 to a shareof 56% in 1986-90; the textile industry declined during that same period.

I= mole of the mnnufacuring industry in gena ng eyrt income to the country is fairly modestHowever, at the same time as the total expotsL have increased from 638 million US$ in 1986 to 927milion USS in 1990, the sharc of the manufactring industry has increased from 17 to 32%. Sugar,soya flour, texiles and leatr products were among the most successful export products during thelast few years.

The Bolivian m ng industry is mainly artisanal. In 1987, private industry comprised somc12,700 enteiprises with a total of 49,000 employees, which means that the average work-fore wasless tha 4 persons per nufacting uniL There are only some 1.300-1.500 enterprises having morethan 5 employees, and thus beng large enough to be considered as tue "industries". Among the big-ger industies, the dominant ones are oil refineies, cement plants, otler demical industries, food andtexile industries. As much as 83% of the indusui added value and 82% of the industial employmentare generated in the department of La Paz, Santa CrUz and Cochabmba.

B. Major categories of Industrial activtty

The manuacturing industry, as defined for the prpose of this repot includes all industria activitiesin Boliva except (a) mining and concenration of metal ores, (b) exploitation of alluvial gold depositswith the subsequent production of gold bulion, and (c) smelting of base metals in primary smelters.Consequently, the mufactu industry" covers a very wide range of activities and environmentalimpacts. Major industrial caegories inlude:

1. Metallurgical industris

Tbe biggest metallurgical industry in operaton Is the Vinto smelter near Onuro, having an instlledcapacity of about 30.000 tons of tin and 6.000 tons of animony. (ibis and othr primary smeltes arediscussed further In the secton of the repaot on mining, because the Bolivian government treats pri-mary smelters as part of the mining sector.) The previous very deficient environmental conditions thereare now being improved through German support and an investnent of US$ 53 million over the timeperiod 1992-95. In addition to the primary smelters, there are also several smaller metallurgical plants

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for converting scrap metal to products such as valves and fittings in bronze, brass. aluminum and castiron. TIis industry mainly produces for the local market, as do the iroa casting plants that manufactureequipment for tie mining industry. Another activity in this sector is the recycling of spent lead bat-teries and tin scrap to produce lead tubes. rmconstituted lead batteries and welding metal. Some ofthese small-scale industries play an important role in the recovery and recycling of valuable materials.thereby contibutg to the replacement of imported products by domestic production.

Z Metal and metal finishing industries.

Ihis branch is rather small as far as the total output is concered, although a great number of verysmanll enterprises are Involved in the sector, particularly in El Alto.

3. Industial minerals.

ibis sector includes the cement, asbestos cement and glass industnes. These branches usually extractthe raw materials from mines or quarries of their own, although one manufact of asbestos cementproducts uses imported raw materials. The cement and the glass industries have presently entered intoa very ecpansive phase to meet the growing demand. The industry based on domestic asbestos is verysmall scale and does not seem to have any potential for expansion.

4. Petroleum industry.

MTe petroleum industry in Bolivia is completely dominated by the state company Yacimientos Petrolf-feros Fisles Bolivianos (YPFB). which was created in 1936 and given the mission to explomexploit. refine and distribute the hydrocafon resources of Bolivia. The current producion of crude oiland natural gas, expressed in oil equivalents, was 130.000 barrels/day in 1991. Ibis total productionachieved by YPFB and its subconors can be divided into 30,000 baresday of oil and 530 millioncubic feet/day of gas.

Of the natral gas produced, about 40% is exported (almost exclusively to Arge:rtna), 35% is reinjec-ted into the oil-bearng formations and a litte more than 10% is sold on the domestic market and/orconsumed internally by YPFB. The oil is refined in three refineries located in Cochabamba and SantaCruz (total capacity 45.000 barls/day). The main operat ns in the refineries axe distillation andftionation of the crude oil, but there are also activities to obtain various other products. Twelve oilpipe-lines and 8 gas pipe-lines ransport hydrocarbons to the refineries and/or to the industrial con-sumers and points of exporL An oil pipeline connecLs the central oil fields with the port of Arica inChile, but cunrently no cnude oil is exported, since production is in balance with domestic consump-tion- Some diesel is imported. A new gas pipe-line to Puero Suarez, for export to Brazil, wil be builtin the near future.

Prosecting for new oil reserves has been limited in the past, but several it national oil companieshave become active, following a recent change in legislation. YPFB continues to operate the refiingand distribution systems.

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S. Leather tannig and shoe industry.

This is traditionally an important scctor in Bolivia with many medium-sized and small units. They aremainly located in Cochmbmba, though some are in La Paz and Santa Cruz Tihe tanning industry wasincreasingly successful on the export market during the 1980s with an export figure of more hn USS17 million in 1989.

6. Textile Industry.

Ihe textile industry was the second largest manuftring sector (after the food industry) in Bolivia inthe 1970s, but has successively lost its importance; it represented less than 8% of the total manufac-turing value in 1990. The traditional wool and cotton industry has declined at the expense of syntheticfibers, a change which has, however, resulted in a strong recovery of export sales, amounting to a 25%share of the total of exported manufactured goods in 1990. The highest concentiation of textile plantsis in La Paz, but the industry is also well established in Santa Cniz and Cochabamba. with a few unitsin Oniro.

7. Paper industry.

Paper and carton manufaturing is a very small sector in Bolivia, with only one or a few smal millslocated in each of the depatments of La Paz. Cochabamba and Santa Cruz. All these units use re-cycled paper, waste fibers and/or imported pAp as raw materials The associed paper converting,graphics and prntindg industry consists of many medium-sized or small units, mainly concenrae inLa Paz_

8. Food industry.

Mhe dominating position of this sector within the m ng instry confinues to increase, bothv.ith regard to its total value and to the number of enterprises and workers. However, the Bolivianfood industry is predominantly producing for the local maret its export share sti being as low asabout 10% in 1990, though derivatives of soya seem to have been very expansive on the export mar-kets during the last few years.

The bigger units within the food manufacturing sector include: edible oil plants; sugar mills; distil-leries; breweries; and a yeast and food factory. Several ium-sized or big units occur in the sub-sectors of slaughterhouses, milk product factories, sofi-drink bottling plants and cereal processingplants. The big factoies procsing soya, sunflower, cotton grains and sugar cane are mainly locatedin the department of Santa Cruz, while a big edible oil refinry operates in Cochabamba. All majorcities have at least one brewery, one or several botting plants for soft drinks and one to severalslaughter-houses and meat-packing and/or other canning plants.

Many of the private modern food-processing factories have adopted the best available internationaltechnology. E-owever, several older units still use obsolete and very wastefil technologies. This isparticlarly tue for the municipal-owned slaughterhouses and stat-owned sugar mills.

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9. Miscellaneous.

The industial sectors discussed above arc all characized by operations that cause some degree ofenvionmental Impact or considerable hazards with regard to occupational health and safety. In ad-dition, the manufaclhrng Industry comprises a variety of other acivities whose operations have rela-tively minor environmeal impacts, although somc of them are quite important with regard to thnumber of enteprises and fte employment offed. These include clothing factories. saw-mills andwood-processing (e.g.. furniture) fuctories. the ceramic industry, and the manufacture of machinery,celctrical appliances, insruments, etc. The chemical industry is fairly restricted in Bolivia as far as thetotal number of enterpnses or the total production value are concerned, but it covers a great variety ofacivities. The sector also includes recycling of waste lubricant oils and manufacturing of variousnished plastic and rubber products. The chemical industries are mainly concentrated in La Paz - El

Alto. with some in Cochabamba and Santa Cz.

C. National env!ronmentsl policies, laws and insittutions regarding industry

As noted above. the only effecdve regulation of industrial pollution occurs pursuant to a few munici-pal ordinances regarding water quality. There is no special regulation of hazardous waste or industrialair emissions. although these subjects are mentioned in the National Environmental Law.

Ihe Ministry of Exportation and Economic CompetitiLveness (ECE) (formerly the Miistry of In-dustries) has authority to regulate industrial polution, although it has not exercised this authorityexcept in very limited circumstaces. MECE is prepaing a Presidential decree to create the BolivianInsdtute of Norms and Quality. is would be a private Institution whose responsibiltIes would in-dude drafting industry standards, including environmental management requirements. MECE wouldthen formally promulgate these requirements, in cooperation with SENMA and other apprpriateinstitutions.

The National Chamber of Industry has recently created a Committee of Environetal Affas which iscoordinating with SENMA on preparing the new regulations for EIA and environmentl quality.

D.. Industry and environment

1 General aspecEs

Unlie the mining industry, the manufacturing industry is not by definition consuming non-renewablenatiral resources. The mauacing sector cxhibits a wbole range of practces when it comes to Xtresponsible and sustainable handling of raw mateials, fm recovery and recycling to destructive uses.However, almost all categaoies contibute to the depletion of fossil energy sources and to contarna-tion of water, air and soil during the transformation of raw materials into finished products.

The environmental impacts of the manufactuing industry in Bolivia are relatively small, when com-pared with those of the mining sector. Since the greater part of the Bolivian industry transforms agro-based, organic materials into products, a great part of the major types of contaminants are similar tothe domestic wastes from cuties (organic substances, nutrients). Ilerefore, it is difficult to separate the

xvii

environmental impacts caused by industrial wastes fmm those caused by muniCipal sewage, especiallybecause most industries are located in densely populated areas.

Nevertheless. it has been possible to identify the foUowing environmental concerns related to theBolivian manufacuring industry:

1. The consumption of non-renewable energy and non-sustainable use of other natral resources:fossil fuels; raw materials; siting of industry in areas with scarce water resources.

2. Land degrdation: inadequately planned tansport systems; siting of industry in densely popu-l1ed areas; and loss of recational amas, green belts. etc.

3. Contamination of surface waters and gwundwaters from wastewater effluents containing: highorganic loadings (biological oxygen deficiency); slowly degradable organic substanzes; nutrients;and toxic substances.

4. Poor waste management practices: solid waste; hazardous wastes; inadequate recycling andreuse.

5. Air pollution: dust; noxious gases (SO2, NO., CO2. CFC,); external noise.

6. Occupational health and safety hazards.

The most fundamental requirement in order to achieve a rational utilization of natral resorces and tominimie the environmental impact of an indusial pla is to ensure an appropriate location. Rationalplanning of industry siting with a consequent segregation of industrial and urban areas is a relativelyrecent phenomenon in Bolivia. By far the best example of a well-functioning industial estate comesfrom Santa Cnruz wbere about 750 hectares northeast of the urbanized area of the city wve reservedfor industrial development At the end of 1989, about 250 eares were developed and almost 150industres installed The municipality has provided the necessary ifstcre (roads, water and ener-gy supply, sewer system and storm wat collectors) and is operating an effluent treatment plat

El Alto. Cochabamnba and Onwro have also taken Inltiatives to set up indusial ess, but with muchless success. For example, in El Alto, an indusri reserve was designated without any guarantee ofland rights and without prvision of basic services such as electricity, water supply or sewer system.Also, with few exceptions, there is no special segregation and Qtatment of industial or householdwastewaters, nor are there adequate systems for solid waste management and disposal.

A considerable part of Bolivian industry is located in regions where water is a very scarce commodity.Such is the situation in La Paz - El Alto and in Cochabamba, where the water scarcity was aggravatedduring the extended drought at the end of the 1980s and the first two years of the 1990s. In theseareas there is a clear conflict between industry, agriculture and domestic consumcrs, including recrea-tion, with respect to the use of limited water resources. Some industries with bigh water consumptionin La Paz (e.g.. textles. leather tanning, yeast and beer production) do not seem to have taken anydecisive measures to reduce their water consumption. The water being supplied by La Paz's publicenterpnse "SAMAPA" was reported to cost 0.9 Bs/em3. a pnce which does not seem to present a suf-ficiently stong incentive to save water.

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nibre is an urgent need to lmprove water resource management in Bolivia. This is clear from theextremely high pollution load in the nvers draining areas with high density of population and industry.The tree biggest and most industialized cities, La Paz, Santa Cruz and Cochabamba, -c drained bythe nvers Choqueyapu, Pilaf and Rocia, respectively. In all these rivers, BOD5 values above 100 mg/L(and occasionally exaceding 200 mg/L) are regularly recorded, at least during the dry season. TheseBOD levels indicate a very high loading with organic waste. Such high pollution loads in rivers withinpopulated areas are certainly not consistent with any reasonable environmental goals. A few examplesmay illustrate the situation

Quanttative discharges of organic waste (measured as BOD 5) to rivers rom some industries in Boli-via. All discharges given as kg/day.

TYPE OF INDUSTRY BOD5 COMMENS

Brewery (small) 120 Individual effl, treatmentBrewery (big) 1 500 No treatmentYeast factory 1 000 No treatmentMilk product factory 260 No treatmentVegetable oil factoy 740 No treatmentDistillery 760 150 d/year, Ind treatmentSugar min 1 6 000-45 000 200 d/year, No treatmentSugar mill 2 16 000 200 dfyear, No treatmentTannery 500 No treatment

Urban sewage in Santa Cmiz, 190.000 inhabitants (for comparison)

- before teatment 4,800- after treatment 600

he examples given probably represent some of the worst cases in the country. The inxustial branchesshown in the table togetr with slaughter houses, petroleum reSneries, chemical plans produdngsoap and detegents and textile plants are the most polluting industies in Bolivia as fair as organicwater pollution is concened The waste water effluents from some of these industries also containvarious other contaminants, such as: chromium, sufides biocides and dyes In tanney effluents; sol-vents and dyes in textile effluents; persistent hydrocabons and solvents in oil refinig effluents; etc.

2. Recent trends

Unlike the mining sector, the manufacuring industry in Bolivia does not yet seem to have caused anymajor large-scale or regional negative impact on the naturl environment. However, there are alreadyseveral examples of local or medium-scale detrimental impaCts on ecosystems, soils and the humanenvironment, including lage fish-kills, impairment of agricaltural activities and severe nuisance toman. caused by emissions of toxic substances, dust, bad odors or noise. Tbere are to date relativelyfew in-depth investigations made on the envionmenal impacs fm B3olivian industry. The alreadydemonstrated adverse effect however, clearly justify concem about the sector as a whole. However,this concern should not hide the fact that at least some sub-sectors of the Bolivian industry obviously

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have beneficial impacts on thc environmcnt. insofar as they activcly contribute to a more rationalreutilization of rcsiducs and recycling of wastes.

Geniul awareness and knowledge about environmental issues was fairly well developed among theBolivian industry managers working at many of the (relatively large) companies visited by the StudyTeam. Although some commendable initiatives towards environmental prote'ion measures were notedin several cases, the missing Unk in many other cases turned out to be a lack of clcar incentives orwell-formulated rules to stimulate further steps towards an improved environmenL

E. Occupational health and safety

In the bigger companies and in the modem plants, which usually have adopted a sophisticated procestechnology with a high dcgree of automatic procss control, the working environment has a 'built-in'high stand3rd. On the other hand, the smaller enteprises. and in particular Ihe older plants, exhibitvarious deficiencies in the working environment.

As is the case in the mining sector, the working environment wilhn Bnlivia's Industrial sector showsgreat variations from safisfactory to unacceptable. A significant number of the bigger and thrivingcompanies in Bolivia exhibit a satisfactory awareness of problems related to occupational health andsafety; they have adopted moden technology. safe equipment, and training practices to prevent ac-cidents and educate their workers about potential nisks. Meanwhile, in many other companies, esocrcial-ly the smaller entepises and older plants, ignorane and negligence is a major reason for occupationalillness and accidents. Major occupational hazards include: inappropriat handling of chemicals; indoorair pollution (and the lack of respiratory protection); bad lighting conditions; nolse; and workingdouble shifts (to earn more money).

Only a few companies within the industial sector seem to keep records on occupational accidems.However, the petrleum industry (refineries) and a few other companies stand out as good examplesregarding the reporting of accidents and the keeping of records and statistics. There is a clear need forimprovements in occupational bealth and safety, including better education and training of the in-dustrial workforce regarning this issue.

F. Social impacts

The industrialization process in Bolivia has developed gradtally. albeit slowly, since the 1950s, whenmassive migrations to the major cities began. Up to that time, mining and agricultue were the totallydominant sectors within the Bolivian economy. However, this situation beg. i changing due to factorssuch as low agricultural production, changes in taditional ownership systems concerig land, thecollapse of the international tin market with the subsequent closure of mis, and the lack of industrialdevelopment which could integrate the many unemployed workers in the countryside. Themanufacuring industry in Bolivia is still a relatively small sector within the global economy, with aconsequently restricted overall social impact; however, its social impacts have been increasing,particularly as they are linked with broader urban social problems.

Rapid urbanization and excessive growth of the capital are two outstanding features of manycontemporary Latin American societies. The development of La Paz-Ll Alto in Bolivia is a typical

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exampic of tis phenomenon. On thc other hand. Bolivia contrasts with other Latin Ancrican countricsin that industry devdepod out of the already cxisting cheap and abundant workforcc. rather thananracting workcrs from othcr countries.

Me large influx of people to La Paz-El Alto has greatly exacerbated problems of unemployment andsub-employmenL hibs situation has resulted In a rapid increase in She number of street merchants,beggars, prostitutes. thieves and other people of undefined occupation. Heavy cime is, bowever, notyet a major concern

The very inadequatc education level of this population does not permit them to seek qualified worLOn the contary. the abundance of unskilled laborers, including men, women and children, has broughtdown the income of the urban poor. TIhus, wages are very low and work conditions extremelydeficicaL

her is little data on the impacts of industrial growth on public health in urban areas, but this is animportant concern, especially in the larger cities. Since most new industrial ventures will presumablylocate to existing industrial centers in urban areas, it Is urgent to address existing problems withinfrastmcture and the related social consequences in cities such as Cochabamba. El Alto, La Paz.Onaro and Santa Cruz.

VL RECOMMENDED PRIORMIES FOR AN ENVIRONMENTAL MITIGATIONPLAN FOR THE MING AND INDUSTRIAL SECTORS

Every environmental aspect of the mining and industrial sectors in Bolivia requires very substantialimprovement This section recommends priorities for consideration by the Government of Bolivia andother interested parties in preparing an Enviromnental Mitigation Plan for the mining and industrialsectors. It is divided into three parts: (1) broad policy, legal and Instituonal issues; (2) major targetsfor mitigation; and (3) recommended priority activities.

A. Broad policy, legal and Institutional Issoes - darifying and Implementing policies topromote sustainable development

In principle, the Environmental Law (supplemented by the environmental provisions of other recentand proposed laws) contains all the necessary policy elements to carry out a long-term nationalprogram geared towards sustainable, environmentally sound economic developmenL However, therehas been very little harmonization of these elements with preexistng policies, laws and pracices.Effective implementasion of polices on sustainable development will depend on harmonization andintegration at the policy, legal and operational levels. Ibis must be, of course, an extended and gradualprocess.

The Govemment must balance the need for designing new legal instruments and programs with fteneed to improve implementation of existing requirements and programs. We recommend building uponexisting requirements, programs and institutions wherever possible, and taking a cautious approach todraffing new legal instruments.

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Given the newness of the issues and the very limited resources available to tackle them, it may oftenbe more productive in the long run to begin with general regulatory frameworks supplemented byvoluntary guidelcnes and other coopcratvc activities with regulated entities, and to formalize detailednew procedures rugh more comprehensive final regulations as operational experience grows. Theinberent delays In finalizing legal requirements with this approach would be justified by the benefits ofensuring that all paries are familiar with the goals and the probable outcome of such wodL

Allowing govenment and industry adequate time to prepare and adapt to the coming rules would buildthe acdibility and effectiveness of environmental management efforts by ensuring that new legalrequirements are in fact appropriate and feasible. It would also reflec the reality that routine legalenforcement wil not be a practical option in Boivia for some time; the inshtutonal infrastructure,public awareness and political will necessary for enforcement of environmental mnansgementrquirements do not yet exist.

Aside from the problems with weak legal implementation and enforcement capabilities. it is important!o bear in mind that legal solutions, while imp t ve restricted effectveness m any case. Clear-ly.no govemment can undearake to regulate all sources of environmental harm at once; development andapplication of such requirements must be incremental. Inevitably. most sources will n be subject tosignificant environmental regulation in the early days.

Thus, the success of environmental management efforts rests heavily on building human resources, aswell as broad outreach and education. Ihis requires action on two levds: (1) raising awareness withingovernment. the regulated community, other key Institutions, and the general public; and (2) providingeducaton, tnining and on-the-job experience at the university and professional levels for peopleworking in the many fields that affect environmental management

These considerations have clear application in Bolivia. As this sectoral assessment illustrates. ther areenormous variations in the kinds of mining and industrial activities tbat contribute to environmntalproblems, and the nature of those problems vithin different regions of the country. The govemmentwill nced to tailor its approach accordingly. Legal approaches, supplemented by outreach andeducation, offer promise in working with the larger operations. On the othe hand, makingimprovements among smaller sources, especially those operating in the infomal mining and indusnrial

ctors. will depend more on broad economic and social, rather than legal, responses.

Key concerns within the area of broad policy. legal and institutional issues include:

1. Strengthening governmental and nongovernmenal institutions.

Unclear institutional responsibilities and weak institutional capacity are a major obstacle to crryingout public policy initiatives in Bolivia, as in many other developing countries. Even where policies andlaws glready exist, it will not be possible to apply them effectively without strengthening institutionalcapabilities. Improving these problems will require claifying government institutional esponsibilitiesand strengthening institutiona capabilities, with particular attention to inaeasing human resources.

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2 Overall planning for sound use of land and natural resources.

Ihe resource conficts and planning problems identified in this stady reflect larger problems withinBolivia - and many of them will be resolved only as the county is able to take on the underlyingissues. Ihe Natio Envion Law's call for development of an Ordenamiento Teritorial ispotentially the most comprehensive response. Tlhe laws being prepared on biodiversity. indigenouspeoples, water and foxestry may hclp to resolve some problems of natural resources management asthey apply to different seaors.

Some problems related to mining and industy, such as conflicts with specific agricultual and urbanuses of water. will have to be addressed case-by-case. Othe problems could be addressed troughgenilal policies even before formulation of additional laws; in some cases, new actions could drawupon exisn examples.

3. Setting goals for ambient environmental quality.

Setting goals for ambient environmental quaity is one of the basic planning tools that governmentsuse for managing environmental quality and natural resource use. These goals set targets forenvironmental quality, based on the primary intended use of a given resouce basc.

In the near term, we would nMt recommend attempting to establish detailed, comprhcnsiveeaviromnentsl quality goals in Bolivia. To do this effectively would require far more technicalresources and institutional capabilities than the Government cumrly possesses. However, theGovenment could lay the groundwork for estabshing these goals, perhaps initialy through theregulation on envirnmental quality.

4. PLaning for new investments-

Improved planning for new investments is a major key to braing the cycle of poor envionmentalmanagemeuL Designing beEr systeMs kom the beginning is much cheaper and mo efficiemt thanchanging existing systems. It Is also easier to inject pollution prevention mesures at the design stage.

In the mining sector, the firt priority should be to incorporate environmental consideations into therstrruing of COMlBOLs holdings. COM[BOLUs plans to do this with support from the WorldBank wil be a major step within the mining setor, and will signal clearly the GovernmenVscommitment to iEs new policies on environment and sustainable developmenL Also, it wi'l set animportant precedent for any fumre resructuring activities in BoUvia.

In the industrial sector, the emphasis should be on implementing the ew regulation on EIA that isnow being prepared. SENMA and others involved in this process will have to plan carefully in termsof how many and which new investments activities should be the early candidates for EIA. Tibs isimportant to ensure that the extremely limited EIA capabilities in Bolivia are not overwhelmed, andthat there are some early successful experiences with this new requiemenL

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5. Key regulatory and program implementation issues include:

a Chmng oj2ntity-bnscd and pnc-lased reguat instrumnts for cnvirnmental manaementSlecing the best mix of regulatory insments in any given situation depends on a thoroughungerstanding of the particular context and circumstances. Bolivia needs to adjust its choice ofinsrments to the realitles of local environmental management capabilities. since thr Is very limitedtchnical experdse and Institutional capadty.

b. Pmng environmentlly sound terlnologies and proe . As discussed above, theaccomplishment of envirnmentally sound praices cannot be achieved only throgh formal legalrequirements and inccntves lhis is particularly true for couries like Bolivia that have traditonallyweak public administrations.

An important alenative means of achieving eavioumental management goals is to induce industry toau voluntarily. Ihis can be achieved by a combination of information and persuasion. PubUc opimionand the activity of non-govermetal. organiz2tiom are ofte influential in this respecL Some of thegroundwork for encouragig industy awareness and voluntry improvements through this route hasbeen laid through Bolivia's use of widespread consultation in developing major environmentalinifiatives, such as new laws and the PAAB.

c. _Solid an hazardous waste management. Bolivia needs to begin establishing a basic firmework andguideliun for sound waste management practices. At a minimum. the governme needs to: identifymajor categories of waste that should be handled separately; develop policies and guidelines for betterwaste management. including waste reduction; and develop guideines andlor regulatory requirementsfor saniay landfills. Ibis should be done in close coordination with local government authorities.

d. Labfimonitoi1ngcapaciti. Increasing Labratory and monitoring capabilities isfundamental to improving the technical, scientfiw, and legal aspects of enviranental management inBolivia- lhe market for thes services will gradually increase as environmental management grows.particularly if, as recommended above, government institions generally rely on private services-bMakng the needed improvements will require sregthening both technial and human resources. Animportant step would be establishing a central environmental laboratory charged with setting standardsfor quality assurance and quality control, serving as a reference laboratory, and helping labomtoiesacross the country to coordina.

e. Occupational health and safey and its socil_ imp_ications. The main problem here is weakimplementation, rather than inadequacy of existiang requiments. TMe existing legal requirements foroccupational health and safety are litte respected and the general awareness of these matus is low.One reason for this undoubtedly lies in the major economic and social problems which are affectingBolivia. However. this predicament must not serve as an excuse for not acting to improve workers'health and safety wherever such possibilities exist Opporemities do exist in the larger mines and theformal industrial sector; initiatives for improvement will be most efficient if addressed to employers.

TIhe Government needs to examine how to inaease its own support for worker safety and also how toinase donor support In the realm of environmental management, occupaional health and safetymeasures could often be linked to broader questions of safe facility opeations and emergencyprepareds.

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Regarding more sPecific measures tO be taken, the occmrence of siticosis among miners is a majorconcern A study from 1978-82 showed an average rate of silicosis of 11% among underrundworkers. It Is probable that the situation has improved since then thrugh the closure of some criticalmines and the introduction by some companies of health controls and approriate measures. On theother side, many more winrs are today working in the informal sector. in mines with veryrudimentary ventlation and other preventive facilities. Generally speaktng. Uttle is known about thepresent day extent of the problem, so a new wide investigation concemring the health stats of teminers should be caried ouL ibus would provide a basis for subsequent decsions and measures.

Another urgent issue relating to the health of miners, is the regular use of mewary in the exploitationfor alluvial gold, with resulting possible intoxication, both in connectin with the process ofamalgamation and, indirectly, through the consumption of mercury-bearing fish.

£ Addressing environment prhems involvingsmall sources nd tmer. The mainpiaoity is to gain a better understanding of the small scale and informal minino ectivities. Keyquestions to be answered are: to what extent are small scale mining activities in Bolivia economicallyviable?; to the extent that smal scale mining activities in Bolivia ame not economically viable, whatmeasures can help to address some of the health and environmental problems?; and wbat is theexperience of other developing countries in trying to address similar problems?

B. Major targets for midgadon

1. Coss-cutting areas

a. Planninp for new Investments. All new maim investments (new facilities and expansions of existingfacilities) shoud be planned and cxecuted according to "best available and economically feasible"technologies ElAs should be inorporated into the permitting procedur for new operations, andenvirnmental audits for existng operations. Using envirnmenta aits to belp plan the restructingof COMIBOL wil be a major advance in beter planning for new investments.

b. Ouation2l bealth amd saet. As discussed in the preceding section, the Government needs tomake occupational health and safety a higher priority, at least in formal mining and industrial accivitiesof above a certain size. This should involve examining possible formal and infonnal incentives andalso enlisting more support from international donors and assistance organizations.

2. The mining sectm

a. [ envXmn g n n . Environmental conditions In the area of Oruro arecausing grave concer. The problem is very complex because it involves pollution from many differentsources, inludidg: acid mine waters from a great number of mines in te area; effluents from minealconcentraion plans; euiluents and air emissions from smelters and other indusay acid drainage fromwaste rock and tailings; and human waste and sewage.

The impacts of these problems are senous and difficult to fix: surface and presumably gmund watersare being contaD:nated and made unsuitable for human consumputon or irrigation; economic damage is

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caused thtiugh destruction of conunual water and sewage istallations; and the popdlatioa is directlyaffected by samtazy problems connected with industral and urban pollution. Also, the ccosystcm ofLake Poopo is seriously treatened. This poses serious threats to the fishing and the daily livelihood ofthe Uru Muratos tibe, which lives on the shores of Lake Poopo. Ihe lake is also an importatwatefowl babitat.

Presenm kowledge about the situation is rstricted and superficial, and few initiatives have been taken.Two limited studies have been proposed to FONAMA for funding under the Enteprise of theAmericas initiative; one on environmental conditions in Lake Popoo, and the other on conditions inOrm town. Also, tWo of the major mines of the area wil be audited under the COMIBOLenvironmental program. In the following section on reommended priorty actions, the Study Teamsuggests beginning a pilot project in the Oniro area on Intgrated envionmntal management.

b. Potosi and thC recession of the mining sedor. The city of Potosi is in a state of prolongedeconomic crss due to the recession of the mining sector and the virtual lack of altrnafive occupation.Added to these difficulties are the senous environmental problems caused by: water scarcity; aciddrainage from the Unificada mine; the very extensive small scale and misanal mineral exploitation inthe area; the unplanned establishment of coocentration planKs within the city boundaries; theuncontrolled discharge of mining waste; and the unresicted release of communal waste and sewageinto rivers flowing through the city.

Tlhe result is an extremely unhealthy milieu with rivers and soils being higbly contaminated. within thecity as weU as downstream for tn of kilometers. However, there is litte specific and quantitativeinformation about baseline environmental conditions, or the health impact on people iving andworling in the area Ihe Study Team has supported SENMA in reorientg a planned study. to befinanced by FONAMA, towards the problem of pollution from the small concenAtion plants withinPouosi and the relautd effects on the nearby population. Anoter planned activity is the COMIBOLenvironmental audit of the Unificada mine (Cer Rico).

c. Minpgfor, alluviM ol in PM of th Anazon bain in Bolivir Palts of the Amaon basin inBolivia are seriously affected by destuction and contamimtion related to the mining of alluvial gold.Present activities do not seem to be significantly affecing indigenous peoples, but the potential impactboth on them and on the ecosystem in general need to be investigated.

Remediation of existing eavironmental damage will be a complex task. A huge complicating factor isthat the ares in question are largely outside of public control and without infrastructure. Health serviceis rudimentary and serious accidents are very common. By and large, protecing the environment orworkers' health and safety are unknown conceptions.

There is only very limited information about actual conditions in the area or the interrelation amongecological, economic, technical and social factors. The 1992 study conducted by L[DEMA in anexcellent star Ihis type of work should be extended to Tipuani and other areas.

The more direct task of eiminating the use of mercuy - or. more realistically, of improving theprocedures used in the amalgamation process - is a matter of enforement (in the limited instaneeswhere this is possible) and more generally of education and information. Even though this task isfundamentally the responsibility of governmet authorities, nongovernmenal organizations could playa major role.

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d Small scale 2ni informal mining activifies ani thrir social and environmCntal implic2,ions. Theterrible occupational and environmental hazards linked to small scale and informal mining aregrounded in BoliviEs pessing economic and social problems. Like more generl worker health andsafety problems, it Is difficult to see how these hazards can be significantly improved apart fromamelioraing the underlying situaLion.

COMIEBOL's plan to lease mining rights on some of its less productive holdings to cooperatives islikely to rsult in deteriorating health, safety and environmental conditions, as compared to thesituation when the mines were previously operated on an industrial basis. COMIBOL should explorethe possibilities for minimizing, if not eliminating, the potential for some of the most dangerous typesof small scale operations to be carried out In holdings that are newly leased to coopcLatives and othersmall ventres. If here is some success in this area, COMIBOL should consider how any suchmsures could eventually be applied to other holdings that are already leased.

3. The industrial sector

Overall, this environmental assessment Indicates at the enviromental and occupational problemsrelated to the manufacturing Industrial sector In Bolivia have a more lmited scope and are less acutethan those identified witin the mining sector. Nonetheless, there are several regions where mitigationmeasures need to be taken in the short or medium term, as summarized below.

a. Poor urban and infustrial snninnifn El Alto. 'he most precarious environmental situaion, bothwith regard to industrinized and urban areas, is encouatered in the city of El Alto. The almostcomplete lack of adequate industrial and urban planning, provision of basic infrastructure andmunicipal services (eg. water supply and sewerage systems with apprpriate waste reatment facilities)gives this city a high priorty when it comes to remedial action. Moreover, the prsent uncontrolleddisposal of liquid and solid wastes threatens the very sensitive cosystetms in the closed AltiplanoBasin. including Lake Titicaca The present effoats to find solutions to the very complex wastedisposal problems in El Alto should be given fUll support Implementng the appropriate solution willno doubt require financial support from sources outside the municipality of El Alto The scope of theproblem is so great the GOB will have to take a responsibility for its solution, probably incooperation with foreign assistance efforts.

b. P_llutinn of the ChouN u River in La Paw The heavy pollution of the Choqueyapu River in LaPaz, caused by bath untreated industial and domestic wastcs, has reached such dimensions that theriver can be regarded as an open sewer going through the whole city. In addition to the advezseaesthetic consequences, this situation creates obvious health hazards to the people living close to thenver banks, to those who exact sand and gravel from the river bed, to those who use the water forirrigation downsteam of the city, and to those who consume the crops produced in the irrigated areas.

The industries located within the city of La Paz should be given incentives or be forced to reduce theirwater consumption by recycling of process water and to undertake pre-tatment of at least their mosthazardous wastes (toxic substnces and heavy metals). Complete on-site wastewaer treatment by allpolluting industries may be difficult due to lack of available land Therefore, a collective treaMentplant for all wastewater from the city might be the only realistic solution. For many years, varioussolutions have been discussed, but so far, no final solution has been defined. The main problems seemto be high costs both for construction and for contimuing operation and maintenance.

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However. the problems will only get worse and become even more expensive to fix as time goes on. Itis therefore strongly recommended that the municipality of La Paz and the GOB give this question ahigh prioritv and select a solution to be implemented as soon as possible. As part of tieir response,they should consider developing an institational arrangement for managing municipal water and sewersorvices similar to the ones used in Cochabamba and Santa Cruz.

C. IJpgrading waterghed manaeret in L nt_ Cn The municipality of Santa Cruz has alreadyprovided adequat facilities for proper environmental management by the great part of its industry thatIs located in the Industrial estate. Most of the remaining industry in this region needs to upgrade itsenvirumental managemenLt High priority should be given to the industries located in the valleys ofthe Pirai and Chane luvers; most of these plants have inadequate or no wastewater atmenL

Mitigating pollution of the Pirai River can only be accomplished through an integmated control andmanagement program covenng the whole watershed. Sound river basin management is necessary toensure that the multiple use of the river for recration, swimming. fishing and irrigation continues tobc possiblc at thc samn time as it is uszd as a recipicat for adequately tcated effluents. Groundvatermonitoring is also necessary in order to evaluate the cafnt degree of contamination and make anyneeded plans for protecting the futre water supply.

Ihere is already a regional organism, SEARPI, tat is responsible for several aspects of river basinmanagement In the Piral River catchment area. SEARPI should be given extended responsibility tocarry out more comprehensive environmenal management programs, in cooperation with industry.SAGUAPAC and the regional Corapion for Development (CORDECRUZ).

ci Extending sewerae yses in Coc4wbamka. The municipality of Cochabamba has also takenseveral commendable initiatives to reduce industrial polution in the city. The next step should be toextend pollution control activities to thdse parts of the city wiuc are not presently covered.

Studies ar: alremuy in progre to extend the sewerge systems to the easter and wester parts of thecity, and also to provide supplementary wastewater tatment facilities. Industries located in areas thatvnll eventually be equipped with sewers will have to install or upgrade their treaument systems, as wellas their solid waste management practioes. However, it appears that none of these improvements willbe possible until the city can resolve jurisdictional and political disputes with adjacent municipalities.Therefore, resolving these disputes should be given top pnorlty.

C. Recommended priority acdvities

Ibis section identifies from the broad list of priorities above a subset of activities that the Study Teambelieves could help _n=ye futur cac to design and implement effec_ive prg s foenvirnm mangeMent In the rning and Industrilsectors. It may be possible to incorporatesome of tese acivities into ongoing projects of the World Bank cr other international orgaizations.In other case, undertaking these activities will require new resources.

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1. Cross-cutting themes

In any activities undetaken, there should be a concerted effort to design the wali so that it:

a. t _ _ m b I _ _pX on-the-job aminlng andimprovement of txhnical capabilities and facilities.

b. Stss congensuM appmacbes 2nd hroad paicipato by all affected sectors and parties.

c. Helpis to Mrmote incentives and miiiesincentivesq to the cffirieCt Use of natural resources.

d. Contrihutes to bulding s eent dtab2se on envirnncital con in Bolivia.

2. Improved envirnmental management for major sources

The emphasis here should be on improved planning for future investments (both new and expandedfacilities) and addressing the most serious problems in existing major facilities. Wherever possible,envionmental improvements should be linked to greater production efficiencies.

a. Incoporatng environment_ l con _idertins into the retcting of C'OMIBO as effectively aspossible.

b- &jenythenirlg the development and application of environmental impa= a-ssesment procdure inthe dmning and indusial sectors.

c. Uang environmental audts of existing facilities to serve as a basis for negotiating neededimprovements, to be done on a voluntary basis or eventually as part of the permitting process.

d. Bette planning infmasrutue and mn_gement f_r industal estates. with El Alto receiving thehighest priority.

e. Delong gfideinesand pit proects in cooertion with indu to build kmowledge andexpence

3. Issues requiring furter study

Among the many Issues requiring fiurter study, the following are especially importat:

a. Conditions, underlying causes and ways to address _nvionmental and health poemS relatedtsmall scalc hard rock mining and alluivial gnld mining

b. Choosing _nd implementing goals for ambient environmentalulity including developing aneffective mix of regulatory instruments.

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C. Idlentifyino andl adresdn key economic factr, such as: clarifying what changes will be requiredin national or local laws In oidcr to adopt appropriate price-based regulatory instruments; pricing andimplemcntation regimes for water, waste disposal and energy servicCs; and other economic mcasuresthat can promote more efficient resource use and managemeuL

d. Clarifyng what Mmas r needed to lproere sensitive ecot ms from mining and Industialactivities..

c. JCj3 ng.-iflabIC human and technical resources and dtiniing how to maIe maXimm iuseof thcse msources and how to increasc them.

4. Proposal for a regionai pilot aCtivity - integrated envirnment management in the Oruro legion

Trhe Study Team believes that Ihere is an urgent need in Bolivia to begin addrssing in an integratedfasion thc complcx linkages of exisring and projected problems associated with mining and indstzrialdevelopment, as identified in tbis sectoal environmental assessmenL The team recmmends locatingsuch a pilot project in the Oruro area

Oruro represents a striking confluence of many of the major pmblems idenified in this sectoralenvironmental assessmenL This drainage basin is experiencing multiple stresses due to the proximityof mining fields and industrial activities to an urban alea and Lake Poopo. a sensitive ecosystem whichis the home of the Um Mwuatos tribe. Ouro already has an important institutional base with Which towork, including laboratory and research capabilities.

Building technical and institutional capacity for environmenl monitoring and environmentalmanagement in ruro would offer a focus for coordinated application of many of the priority activitiesrecommended above; it could also offer a model and training ground for maling similar improvementselsewhere in Bolivia.

D. Analysis of alternadves

The recommended piorities for an Environmental Mitigation Plan will be critical to the success ofBolivia's new efforts to improve environmental management of the mining and industrial secws andalso to lay the groundwork for successful design and implementation of the future environmentalprojects in these sectors. They proposed areas of concentraon are relatively discreet and manageable.factors that are important given the limited resources, especially institutional capacity, that areavailable in Bolivia. Other national planning issues, sudc as broada questions of land use and resourcemanagement, are too diffuse and involve too many legal and Institutional unertnies to make themgood candidates for activities designed specifically for the mimng and indusrial sectos.

The Study Team recommends focusing on program design and implementation. rather than draftingnew legal requirements, for two reasons. Fr there are already activities, including the JGF andETAP administered by the World Bank. to help with legal drafling - an activity at receivesconsiderable donor support already. Second, future environmental improvements in the mining andindustrial sectors will depend heavily on stengthening practical capabilities within BoUvia to identifyenvironmental problems and carry out needed improvements.

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As for the proposed regional pilot activity, Oruo seems by far the most suitable area. None of theother regions and cities surveyed has a comparable mix of mining and industrial activity affecting anearby, well defined urban area and an important ecosystem, including the special concerns of anindigenous tibe. The problems of Potosi are in many ways unique to that area because of its extremedependnce on minin. The problems of El Alto and La Paz are closely tied to complex urbanplanning issues and have limited relation to current mining activities. Santa Cruz and Cochabamba alsolack a significant mining component. Alluvial gold mining in the Amazon basin in Bolivia is anodherunique case and it would be exceptionally difficult to monitor conditions there or carry out anextensive mitigation program.

E. Environmental management and training

Building institutional capacity for environmental management is proposed as a central aspect of allrecommended activities. Participants should be drawn from the public and private sectors, includinggovernment, commercal enterprises and organiacns, universities, research insitutes, localcommunities and NGOs.

F. Environmental monitoring of activities adopted as part of an Environmental Mitgation Plan

Developing criteria and procedures for monitoring environmental impacts of the recommendedactivities selected for implementation will be one of the tasks in designing specific prjecLs.

VII PUBLIC PARTICIPATION

The Study Team and its Bolivian counterparts consulted with a wide range of organizations within andoutside of government A number of infoxmal meetings were held with the private industry,represeted by the National Chamber of Industry, and the National Association of Medium Miners.This to inform about the objective of the study, to hear the opinions of these organizations, and tourge these organizations to take active part in the imminent formulation of laws, regulations, and codesof conduct

A. Seminars

As an integrated part of the sudy program. two seminars have been held in La Paz: a) a three-dayseminar on "MIning and the Environment", with the participafion of three lectus from Sweden; b) atwo-day seminar regading "Environmental questions within the non-mining Induslrial sector". withlecturers drawn from the SES team. The two seminars were arranged by SENMA- Each was attendedby about 60 professionals from the relevant sector. The seminars included lecur within thefollowing main themes:

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General subjects

- Mining opeations and thcir environmental consequences- Measures for the protection of the enviroament in mining ventures- Legal. economic, and stagic means for improving the protection of the envi- ment as

related to mining- Environmenta management and audits in the investigation of water quality in rivers and lakes- Regulation of industrial contuminations- Industrial occpational health and safety

Addressing Bolivian condifions

- The envirnment in Bolivia, with case presentations, intenational comparisons andrecommendations

- Enviromnental laws and regulations as applied in Latin America- Health and safety in Bolivian industry: obser,.Aions, intcrnaonal comparisons =nd

recommendalions- Panel debate concening the Bolivian mining and the eavironment- One-day case exercise (in work groups) in planning an environmentally satisfactory mining

opeaton based on certain given, fictitious conditions

Extensive and engaged discussions accompanied the diffirent points of presentatio All lectues verealso distributed in written form.

B. Consultatlon regarding the flnal report

A draft Executive Summary and EA report (both tanslated into Spanish) were presented tO SENMAin mid-April 1993. SENMA ciruated the draft for review to more than 40 differen organizations thatepresented a wide diversity of expertise and inerests (see Appendix HI). These rganizations were

given two to three weeks to submit written commeas on the dra. In late May. core members of theStudy Team retned to Bolivia to review thes comments and consult more closely with countepartsand othe at meetings organized by SENMA: one in Cochabamba on May 20, 1993 (in connectionw.th ar. international mning fair), with concentration on mining Issues; and another in La Paz on May24, 1993, focusing on the manufacturing industry. Ihese meetings had 25 and 12 participants,respectively. Altogether 15 written comments have been received. he many valuable commenproduced, as well as opinions presented in the discussions, have belped appreciably in improving thereporL

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VIIm APPENDICES

This report is accompanied by the following appendices:

L List of EA preparrs

II. Bibliography

mL Program of seminarslist of consulted organizations

IV. Technical appendices (two separate volumes, including totally 13 supplementary techoical reports)

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PART 1: INTRODUCTION

L BACKGROUND

This is a seccal Environmental Assessment (EA) of the mining and industrial sectors in Bolivia. Itspurpose is to lay the foundations for more effective environmental planning and management in thesesectrs. The EA has been cared out by Swedish Environmental Systems with financig from theSwedish govcrament, in coopeation with the World Ban.L The Study Team's lead institutional cOUn-terpart has been the National Secretanat for the Envronment, although txy have also worked closelywith the Ministry of Mining and Metallurgy. Many other public and private organizations partcipatedin this work.

The report is organized in eight parts.

1. Introduction2. Baseline data3. PoUcy, legal and institational fmework4. Assessment of the mining sector5. Assessment of the Industrial (-annfacuring) sector6. Recommended priofities for an Environmental Mitigalion Plan7. PubUc participation8. Appendies'

This EA presents an overall diagnosis of environmental conditions and identifies strategic priorities.TIhe recommended priorities for an Environmental Mitigation Plan include both broad policy, legal andinstitutionl issues, and specific targets for environmental mitigation in the mining and industrialsectors. Of these priorities, the EA recommends a subset of activities to be given priority in futureactivities of the government of Bolivia, the World Bank and other interational organizations. Theseactivities fall into three categories:

l. Improved environmenl management for major sources of e mironental problems;

2. Issues requiring further study; and

3. A proposed pilot project on integrted environmental management in the Oriro region.

In all these activities. there should be emphasis on building institutional capacity, developing consen-sual approaches with boad participation, and promoting more efficie. . use of natural resources.

'Part IV of the Appendices are workcing papers prepared by inrdividual consultants during theEA process. In some instances, they may not reflect the final conclusions of the Study Team, aspresented in this repori

I

II. PROJECT DESCRIPTION

A. Te.rs of reference and objectives

Ihc present Environmental Assessment was onginally dcefined as a Study of Industrial Pollution Miti-gation, contning tWo parts:

1. A technical part with the ubjectivc to: a) Identify and assess the impacts of the major sourcesof industal water pollution and occ-'pational health and safety deficiencies; and b) to rcommendshort- and mcditm-term strategies to amcliorate theme

2. A legal and institutional part with the objective to: a) provide an analysis to assist in the designof a regulatory and Institutlonal framework for mitigation of industrial pollution and workaehealth and safety; b) draft proposed amendments to related laws and regulations; and c) recom-mend cnteria to identify investment projects for which special mitigation feaes should be in-cluded.

As the result of an initiative from the World Bank. the terms of reference for the Study were modifiedduring Its execution to include the necessary elements to be used as a sectoral Environmental Assess-ment Thus were added the issues of sectoral expansion impact on a) social problems; b) land degrada-tion; and c) ecologically sensitive areas. Also, the legai and technical parts of the study were com-bined.

B. Methodology (working strategy)

MTe work has been carried out by a team frm Swedish Environmeta Systems (SMS). consstdng ofseven members, in close oDopaation with a counterpart group appointed by the National Envirnmen-tal Secretaiat (SENMA). The SES group has comprised environmental expertise within the areas ofmining, non-mining industy, occupational helth and safety, economy, institutional devlopment. andlegal matters The counterpart group has consisted of repsentatives for the Ministry of Mining andMetallurgy (MMM), SENMA, and the Institute for Occupational Health (INSO) (further details aregiven in Appendix 1). SENMA provided special expertise on ecology. Additional experise on econo-mics and sociology was obtained from Bolivian oDnsultants through SENMA.

The team's approach to study and execution of the work was as follows:

1. Collecting background information regarding the mining and industrial sectwas and environ-mental conditions from key ministries and other relevant government organizations.

2. Establishing contacts with trade associations and major company groups, such as COMIBOL,the state-owned mining company.

3. Choosing mining and industial facilities to be visited. Selections were made from officialregisters and suggestions fom trade organizations, based on the following criteria: (1) representa-tive ooverage of all significant industrial subsectors; (2) balanced geographical coverage; and (3)including companies of differec size and production capacity. Within the industrial sector, the

2

number of employees in the plants visited ranged from 10-650 employees; in most cases, the teamconcentrated on plants having between 50 and 250 employees.

4. Visiting different facilitics to gather data through: (1) visual inspection. (2) interviews withmanagers and employees; and (3) sampling of water effluents and solid waste.

In general, the team was subdivided into two field groups, one responsible for the mining sectorand the other for mnufacting industry; there was also some overlap between the two subgroupsto help ensure adequate coordination. Ihe team speciaLst on occupational health and safety parti-cipated in the field visits of both groups. lhe legal and regulatory specialists participated in alimited number of site visits.

Altogether, the team visited about 80 faclUties, located within the areas of Cochabamba, La Paz,Oruro, Potosi, Quechisla and Santa Cnz lhe team was not able to visit any alluvial gold mingsites In the Amazon basin because heavy rains made transport there vcry difricuiLlbe teamcollected more than 150 water and soil samples. Ihese samples were analyzed for heavy metalsandlor organic components, using the services of tree Bolivian laboratories (see Appendix IV.4on laboratory facilities and capacities).

5. Organizing the basic documentation collected during the team's field visits into site-specificchecldists ('listas de chequeo"). These materials have been prnvided to SENMA, but they are notincluded as part of this report because they contain confidential information.

6. Interviewing and consulting with government authorities, trade associations. nongovemmentalorganizations and others on both legal and technical matters.

The team's work was initiated with a lick-off and planning meeting In La Paz in the end of October1992. The field work has becn carried out in two phases of about two months' duration each, duringNovember-December 1992 and January-February 1993. respectively. A progre report was presentedin late December 1992.

As an integrated part of the study program, two seminars were held in La Paz (see Part 7, Publicparticipation).

A draft final report was presented to SENMA in mid-April 1993. SENMA cireated the draft to about50 differenit affected organizations for review. Final consultation with counterparts and organizationstook place in La Paz and Cochabamba in late May 1993 (see Part 7. Pmblic participation).

3

PART 2: BASELINE DATA

L GEOGRAPHY

Boliia Is located in the cener of the South American continentL and covers a surface -rea of1,098,580 km2. Briefly desaibed, Bolivia's territory comprises three main physiographic regions(Fig.2:1): the Andean region covering about 28% of the tenritory in the central west and southwestparts of the country; the sub-Andean region, c3mprising the mid-thermal valleys in the departments ofCochabamba, Chuquisaca and TanJa, as well as the cxtreme Andcan ndges in the department of SantaCruz; and the eastern lowlands, covering more than 65% of the country's territory, and comprising theBeni plains in the north, thir Pecambrian shield and the almost desertic Chaco plains in the south andsoutheasL

Ihe great diversity in topography and physiography produces a widc -angc of climatic conditions(Fig.2:2). The Altiplano. located at an altitude of 3.800 - 4,000 meters above sea level. lis dry andcold weather with extreme daily variations, resulting in very scarce vegetation. In the northern part ofthe Altiplano, Soihe agricultUral actLivity occurs in the Lake nticaca basin. In the higher valleys, poorgrass cover occurs in only limited areas.

In the southen extreme of the country, extensive evaporite fidds occu as salt lakes, covering a sur-face of more than 12.000 km2. The northem portion of the eastern lowlands consists of tropical rainforests, which change, further to the south, into subroical vegetation with savannas and drier grAs-lands.

]L GEOLOGY AND MINERAL RESOURCES

The bedrock of Bolivia can be subdivided into six major, north-southf tending. structurl units, fromwest to east:

Dhe Western CDBMICM consisting of geologically young (Tertiary-Quatenary) volcanic forma-tions: stratovolcanoes in the north and a volcanic plateau in the south. Altitudes vary between4,500 and 6.500 meters.

he Altiplano, a mostly flat, intermoutane basin of continental sediments at an altitude of 3,650-4000 meters.

I;l Easmrn a belt of mainly Paleozoic, stongly folded sedimentary rcks, eroded intoa deeply cut topography. The norther pan (the Cordillera Real) contalns high peaks consisting ofgranite plutons.

'The Subandean me forms the foothills of the Andes. It consists of folded, connenal sediments.Valleys and ranges reacfi elevations of 500-2,000 meters.

4

ifc Beni-Claco plains lowlands at an altitude of less than 250 meters. The Beni lowlands in thenorth belong to the Iropic Amazon basin while the dry Chaco lowlands in the south arc part ofthe Rfo de la Plata basin. Alluvial deposits ar covering a thick Tertiary redbod formatioL

'Tbe PrEcMubrimn shirld is the continuafion of the Brazilian Shield, consisting of gmanites, sdhistsand basic intrusions. Altitudes vary from 100 to 600 meters above sea level.

Since the 16th century, mining has been the totally dominant Industrial activity in Bolivia Some of thefis deposits to be discovered are still being cxploited. Many hundreds of deposits have been worked,containing a wide variety oi metallic dements. Howev, In gene. It may be said that all of thesedeposits belong to one and the same type: polymetallic. hydrothermal veins. The deposits occur in theEastern Cordillera or in a similar bedrock occurring as primuding mountains in the Altiplano. Theveins are generally narow and steeply dipping. These characteistics. malckg the deposits less amen-able to large scale exploitation, have assisted in maiaining the low degree of mechanizon in theoperations. The deposrs may contain one or several minerals of tin, lead, zinc, silver, andmony, tung-sten, coppcr, aad bismuth. in diffeent associationS or in different parts of the same vein system.Copper has always played a minor role in comparison with, for example, tin, zinc and lead.

An only recently recognized type of deposit is that of gold as dissemination in granitold rocks, as forexamNe in the new operton of Int; Raymi (siuated In a hill In the Altiplano). Another non-tradi-tional commodity is lithium, ocwmnng in the Uyuni salt flats (southern Altiplano). It has recently beenthe objea of negotiaLion for eventual exploitation. In the Amazon area, extensive xploitation for goldIs carried otit in a number of places ExtAcion methods vary from artsanal panning to large scaledrdging operations.

The Precambrian area of the eastern part of the country has been very little exploed but is thought toprsent good possibilities. Several finds of massive sulde mineralizatios have been made thereduring the last few yeas, but it IS still too early to know anything more definitely about the economicpotential of the area. The large Iran ore deposit of Mut6n has been exploited on a modest scale sincemany years. However, duc to lack of a nearby market and high transport costs for such bulk materials,the fiture seems uncertain.

Potential areas for future mining represen about 30% of Bolivia's surfae. distibuted among thefollowing areas: the Andes; NE Bolivia, induding te easten slope of the Andes; and the Prcambrianof easten Bolivia (Fig.2:3).

Most of the Andes is characterized by a high density of mineal occurrences with a great variety ofmetals and good possibilities for finding new deposits. The Westem Cordillera has recently attractedmuch attention fom mining companies. The area consists of volcanic rocls and sediments, intruded bysubvolcanic stocks. Ihese have a high potential for the existence of epitermal, bulk minable, preciousmetal deposits. Of seondary Interest, but stiU important, are the numerous native sulphur deposits.Ihe Eastern Cordillera, the histonically and presenty most productive area, still represents good prs-pecting ground for new deposits. Only recently attention has been given to large-scale deposits relatedto Teriary volcanics and intusives.

5

1)\ ^Fti - BOL IVIA- Mein Rood Relief (._I) Clirnoli Zones

Smcomdwy Reods - we. aal,Rosiloods 3am J COO 30 413WO-Deoo^l

R~. - * 0 @ rmw. i t AM

' -8,,R 4 I TROC

- ~~~~~~~~~~*gI9 AZIL

1' - -~~~~~~~~~ ~PEEU~

z1~~~~~~~~~~~~

t~~~~~~~~~~~~~~~~~~~~a A E -- 41T

L. , . ,1

C-M ~ ~ ~ ~ ( -

_ rru_ 1 .

RE

LLJ~~~~~

PARAGUAY n,

, SOUTHA !,'CA

l ~ ~ ~ ~ ~ A 1 4\@, e o. o ao *- I ,'U -~~~~~~~~~~~~~~~~~~~3

Ad7IA&6cf.

-- A R G E N I N A

Fig. 2:1 Geography of Bolivia. Source: Ihe World Bank

6

Fig. 2:2 Climate map of Bolivia Source: after CYMAD (1992). Explanations: Hp High mountainpoLar, Bp Barren plain with dry cold winter, St Barrn plain with hot dry wintcr, Mt Mesodtmal, DwBarren plain with very hot dry winter, Td Tropical with dry winter. lb Tropical humid.

7

M UIN POTENTLALAREAS

, ,,} BOUVLA

W t ~~~~~~~~W

Z~~~~E wi n

t ^ OCWA. ' R x /~~~APfTAFA

Fig. 2:3 Areas of mining potential in Bolivia Source: SGAB - GEOBOL

Alluvial gold is being exploited in several areas of the vast Amazon basin. Very extensive potentialareas are still untouched by these activities.

The Precambrian stield of easten Bolivia reprse a major target for funtre mining activities. It willstill require substantial exploration efforts to be evaluated, but the indications so far are promising:gold-bearing gmenstone belts; major ultmmafic layered complexes with copper, nickel, chromium andplatinum group metals; pegmatite fields with columbium and tin-bearing granites, similar to thoseexploited in Rondonis In Brazil; gold-bearing massive and disseminated sulphide deposits; and analkaine carbonatite province. At present, only one medium-scale mine is going to start operations,while two major gold and gold-copper prospects are being evaluated.

A more detailed description of tbe mining sector is presented in Part 4, chapter I of this reporL

8

IIL HYDROLOGY AND WATER RESOURCES

lMe total amount of surface water annually available in Bolivia is estimated at about 317.600 millionmi. Tibis hydrological potential is distributed among tbree major watesheds with a very unequal avail-ability of wat per unit surface (Fig.2:4):

The AMmaon basin- which covers 66% of the territory, includes 88% of the total amount of watand channels It thrugh several major rivers, Abung, Madre de Dios, Beni, Mamorw, I1eneOrthon, and Yatla.

iRo de In rlatabasin witih 21 % of the country,s land surface, represents 1 1.5% of the hydro-logical potential and features as the main rivers Pilcomayo, Bermejo. and Paraguay.

The closed hasin onr Altinlao occupies 13% of the land surface of the country, but has only 0.5%of the surface water resources. The main river. DLsaguadero, connects -ake Titicaca with LakePoopo. and a number of smaller rivers (Twco, Lauca and Rlo Grande de Llpez) drain the landsurrounding the large salt lakes in the south

The three basins contain 30 navigable rivers (about 20,000 kn), most of them being navigable thewhole year around. The most impoant waterways are the rivers Marmorz, Itenez and Beni. Io theeast, Bolvia has access to the navigable system of Rlo de la Plata, through the canal Tamengo, whichconnects to the Paraguay river. In addition. Lake fticaca has a boat traffic with passenger and freightservices between Bolivia and Peru. The fluvial transport sector has shown, for several years. a conti-nuous increase in tonnage and passengers of about 9% per year.

The hydrodectric potential in Bolivia has been exploited only to a minimal extenL Hydroelectricplants with total installed power of 360 MW are in operation, representing 2% of the exploitablepotential and about 1% of the estiated total potential. The exploitable waterfals are located mainly inthe headwatrrs of the rivers Beni, Grande, Pilcomayo and Bermejo. As of 1989, hydroelectric powerrepresented only a minor fraction (about 6%) of the total energy production in Bolivia and electricityaccounted for only 7% of the energy consumption in the country.

The extaactive uses of water in Bolivia are not very well known, but it is esfimated that abot 85% ofthe 1.5 million hectares under cultivation are irnigated (11% in the Altiplano and 13% in the valleys),mainly through small-scale liTigation systems. With an average water use of 5,000 m3/ha, the totaldemand for water for inrigation is about 640 million m31year. The total surface water consumption byindustry and for production of potable wat is poorly known. However, it has been estima that themining industry consumes about 315 million m31year of surface water. Taking into account that thegreat majority of this consumption takes place in the Altiplano, it represents a moderate 2% of theavailable water resource in tis basin; however, the water resources are unevenly distributed and inmany mining centes the supply of water is scarce.

There is only limited data abot groundwater resources in Bolivia because most areas rely on surfacewater. However, the cities of Santa Cruz and Oruro, as weU as parts of the city of Cochabamba, relyon groundwater. There is little infomaion about the quantity or environmental quality of thesegroundwater supplies.

9

As far as the living aquatic resources are concened, it has been estimated that less than 10% of thefishery potential is utilized. Traditionally. the fisheries in river Pilcomayo were the most imponant inthe country, but lately, the catches in the Amazon basin, in Lak Titicaca and particularly in LakePoopo have increased so that river Pilcomayo is no longer ttAe main fishing area in the country. How-ever, In spite of the inaease in total catches from 3,125 tors in 1980 to 7,134 tons in 1990, the conti-bution to the GNP by the fishery sector was only a very modest 0.21%.

A particularly pv.ssing pioblem in Bolivia is that many of the zones with intensive economic activitiescoincide with areas wher the water resources are very scarce. This is true in the entire Altiplanobasin, as well as in the region of Cochabamba. and indeed, this situation creates conflicts between thevarious water users. For example, the intensive mining activitics in the closed basin of Altiplano causea degradation of the quality of the very scarce water resource, which is not compatible with a multi-purpose use of this resource, for drinking water supply, for irrigation of crops and for fisheries (inLake Poopo). Therefole, wten setting environmental goals in the future, it can bc foreseen that thesehave to be much stricter, avoiding any unnecessary contamination, in a closed basin such as the Alti-plano with many conflicing demrnds for w2ter use, than for ex2mple in the lower Amazon basin,where the amount of water is not a limiting factor. The Cochabamba area. as well as the city of LaPaz. both located in the headwates of the Amazon basin, are special cases, where particular cautionmust be exercised In order to secure a safe ard effecfive multipurpose use of the limited water re-source

WV. AREAS OF ECOLOGICAL SENSIIIVI

Altogether 43 areas have been declared nature leserves in Bolivi. IThe origin and reasons for theprtecive measures, as well as the acta status of the different reserves, vary greatly. In fact, theslection citena have been so erratic that SENMA at present is canrying out a reevaluation whichPresumably will cause the cancelation of some of these reserves and modification in size of otles.

Another tool for the regional evaluation of ecological sensitivity (developed for SENMA by the Con-sernation Data Center of Bolivia) is a computer-constructed map (Fig.2:6), based on the followingcriteria:

3 Ecological fragility. including such factors as soil quality, vegetation cover, hydrological regime,geomorphology, and geology.

* Endangered species, endemic or threatened with extinction, including flora as well as fauna.

* Accessibility, defined as human influence by means of access by road

Thus, the following main categones of ecological sensitivity have been defined

Highbsensitivil. Ecological regions of high ecological fragility. little knowledge concerning the pre-sence of endangered species, and with good accessibility.

10

Medium sensitivity. Ecological regions of moderate ecological sensitivity (due to, i.a. less compactedsoils), some knowledge concening the knowledge of endangered species, and with access mainlythough minor roads.

LIo snsi. Ecological regions of low ecological fragility (partiaclaily from a geomorphologicalpoint of view), good knowledge of endangered species, and with diflicult access.

As seen from te map (Fig.2:6). the general featurcs show high ecological sensitivity in the lowlands,particularly in parts of the Amazon basin and in the soudtasten border areas towards Brazil, whilemost of the AlLiplano is regarded as less sensitive. It is expected that this type of base for ecologicalplnning will be elaborated *brthe in thC coing years.

Fig. 2:4 Hydrography of Bolivia. Source: after CYMAD (1992)

11

VwK tmmMm EUIWk SMFr

w° <~~~~~~~~~~~etA

r O ~~~~~~-ALIMOVOC W W

FMw / b

a

WMA 3p

Fig. 2:5 Nature reserves in Bolivia. Source: SENMA

12

ECOREGIONES DE BOLIVIAGRADOS DE AIIENAZA

D km

fl ~~~~~~~~~~~~~~~At

Criturios: Suelos4. ~~~~~~~~Tipo IJgogtacion

Accebt,i liiadAct .Humaua

Fig.. 2:6 Map of environmental sensitivity. Source: Conservation Data Center of Bolivia

13

V. DEMOGRAPHICS ANI) SOCIO-ECONOMIC CONDMTIONS

A. The Indigenous populaton

The Bolivian population has Its origin in the fusion of two fundamental ethnic components: the indi-genous and the SpanishL Its distribution, evolution and mixing has been, and stDll is, influenccd bygeographical, social, and economic facors.

The aboriginal inhabitns of the Bolivian terdtory have been gruped in we lngWuisdc groups: theAndean group, the Tupf-guaranf group, and the Araguaco group. To the Andan grop belong primmi-ly the Aymaras and the Quccuas. who inhabit the Altiplano, the Cornllcra Oriental and the easternvalleys, and at preseat through the migrations of the last ten yem, also fte easten part of tecountry. The Urus and Chipayas. who live in the urroundings of Lake Poopo and re close to extinc-tion, also belong to this group. The Andean population, traditionally makdng their living kom farmingand mining, have been profoundgy affected by the decline in the economy, which has substantiallychanged the socio-economic structure and obligcd peoplc to look for new alteratives. OIne of thesefactors was the massive dismissal of workers at the Comibol mines, which obliged many minem to'relocate" themselves into coopeaives whem the way of working is very primitive and the ife con-ditions very hard. Another altemative of these unemployed workers was to move towards the north-east and integrate themselves under precatious conditions in the exploitations of the alluvial gold depo-sits in certain areas within the Bolivian Amazon basin (for more detis. see Part 4, chlter I.C5-6).

A.nohe important factor. which directy affected the peasants, was the overvalution of the cocaproducts in the international mrket. Tbis reality caused thousands of families, escaping from droughtand famine. to install themselves in the regions of Codrabamba and Sua Cnzz. Tbis massive migra-tion, in a short time, of the most diverse ethnic and socid groups has had a very negative impact onthe environment The inrduction of wage-eanig work and the m arization of human relations inthe most crude forms, have decomposed the traditional peasant society. It bas also canged the oldagricultural praices, which pected the ecostem, by chng8ng to single crop cultivation with theconsequent ecological damage, such as deforestation and th- depletion of the sails (Cebem 1992).

Bolivian govenumental documents distinguish betwen *Bolivian peasants", which denomination com-prises the Aymara- and Quechua-speaking people, and the 'marginal ethnic groups" of the eastern partof the country. These latter, also rered to as "nomadic and seminomadic indians", are the directdescendans of peoples who inhabited the county in precolumbian times. They have their own soialorganization and a common language. They are confined to their own defn territories. The totalpopulation of these groups is estimated to 130,000 to 200.000 persons, belonging to 38 etnic groups.of which 29 belong to the Bolivian Amazon basin.

The ethnic minorities may be divided into six linguistic families, a classification which also reflectstheir respective culurl origin. These are:

a) Guaranl (Los Yuld del Chord-Mamord, Los Chinguano): This is the most numerous and signifl-cant group. represeting 35% of the chnic minorities of the Bolivian lowlans.

b) Anwak (Los Moxo y Baure, Los Chant del Chaco): Ths group has traditionally been moresedentary and created in preolonial times sophistiaed farming systems in areas prone to innnda-

14

tion. Presently it accounts for 20% of thc indigcnous population of estcmn Bolivia.

c) Pano (Los Pacahura, Los Chacobo): A small group of a few hundred individuals Uving iL thenorthast of Bolivia.

d) Takana. Constitutes 5% of the total ethnic minority population and are located to the deparmentsof la Paz aui Beni.

e) Chmco groups (La Zamuco, La Mataco): Constitute 4% of the indigincous population of the low-1ands

f) A dozen of small groups of uncertain onigin. The most prorninant group is "El Cliquitano", whichIs possibly thc most numerous group of the castern part of Bolivia (c. 25% of of the indigenouspopulalion in the east).

Some of these ethnic groups live from agriculture (slash-and-bum) and usually have their own organi-zation at a communal level. Other goups dedicate themselves to bunting, fishing and collecting, andlack a centalized organization and authority. All the ethnic minorities are in principle nomadic, al-though to a different extent. Each ethnic minority inhiabits its "territory", within which the individualsof the group have common access to the natural resources.

B. Sodo-economIc data

A national census was conducted in Bolivia in 1992, giving a population figure of 6.3 million(preliminary). According to the Instituto Nacional de Estadfstica, 45.2% of the population is li ing inthe Andean Departments of la Paz. Omr, and Potosi. 'ihis repesents a decrease from 52.8% in 1976,the most recent census. The main growth area is the Department of Sana Cruz. which has expandedfrom 15.4% to 21.3% between the two years of census. These figues partly reflect the migration fmthe traditional mining areas to the Ekstern Lowlands. As a national average, 57.7% arc living in urbanareas, an increase fom 41.7% in 1976.

Deite improvements during the last few years. Bolivia remains one of the poorest countries in LatinAmerica, with a per capita income of around US$ 700 in 1991. According to certain standards, asadapted by Bolivian govemment agencies, approximately 55% of the urban population is living belowthe poverty line. The situation is much worse in certain cities, such as El Alto and Potosi, in whichabout 709% of the households are deemed to be poor. In rural areas the overall situation is worw anin the cities.

The social sector accounted for 37% of the total current expenditures in 1991, of which educationstood for 24% units and health and social security for 11% units. The general development within thesocial sector is very low. Thus, the mortality rawe is as high as 92 per thousand, nearly double Iheaverage rate for Latn Amican countries. Life expectancy is 60 yeas The adult illitacy rae is23%. Less tan half of the population have access to safe water (47%) and only about one third tosanitation (35%). The situation has improved substantially during the last decade, but there is still agap between Bolivia and te rest of the regionL (rhe above information stems from World Banksources).

15

PART 3: POLICY, LEGAL AND INSTITUTIONAL FRAMEWORK

L ORGANIZATION OF THE STATE

A. Branches of government

Bolivia is a republic with a democratic type of government The three brnches of governmental powerin the country, as set forth in the 1967 Constitution, are: the Prsidency; the Legislative Assembly; andthe Judiciary.

The atributions of the three bmnches of the govenment are laid out by the Consdtution. The Execu-tive branch is dirccted by the President, who is elected for periods of four years. Like other countriesin Latin America, Bolivia has a bicameral legislature (Asamblea Legislafiva). Both the members of theChamber of Representafives and the Chamber of Senauos are elected cvery four years. Membess ofthc Assembly can be redected consecutively, unlike the president, who has to leave office at theconclusion of ias term. Finally, the Judicial branch is headed by the Supreme Court and Is based InSucre.

B. Key ministries within the Executive Branch with respect to environment and the mining andindustrial seLtors

The structure and powers of the Executive Branch are established by supplta law. Ihe Execu-tive has the power to appoint and remove ministers at the national level to administer and manage thesectoral ara and act as heads of the different sectral ministies that are created by Law. Within fteExecutive Branch, each Ministry Is responsible for planning and formulatig policies rdated to its ownsector. The prncipal ministries with direct responabilities regadi pollution control are:

Ministry of Energy and Hydrocarbons: implements policy and adminision of all activities relatedto the development of energy resources and exploration and exploitation of hydrocarbons wich isresponsible for regulation in these areas. This Ministry bas a Nationl Directioo of Hydroabons.Yacimlentos Petroifferos Fiscales Bolivianos (YPFB) is an autonomous public institution affiliatedwith this ministry; it is responsible for oil explration, exploitation and industrializalion at the nationaland international levels.

Ministry of Exportation and Economic Competitiveness: defines policies for intenational com-merce, foreign investment, promotion of competitiveness and local industry, commerce and tourism. (Itwas previously named the Ministry of Industry, Commerce and Tourism.)

Ministry of Sodal Welfare znd Public Health: plans, directs, coordinates and implements the go-vernment's bealth policy; drafts necessary technical regulations to protect the health of the poptlationat large and to preserve the environment. The units within this Ministry include the General Directo-rate of Hygiene, Occupatinal Health and Welfare (HOHW), probably the most importantorganization within the social health and welfare sector, and also the National Institute of OccupationalHealth (INSO).

16

Ministry of Labor: plans, directs. coordioates and implcemcns the govermnncat's workers policy.Within Ihe Ministry there is a small unit for workers' health and safety.

Ministry of Mines and Metallurgy: implementation of policy and administration of allactivities related to the exploration and cxploitation of mineral resources.

MiNistry of Planning and Coordination: assists and advises the President, the Conncil ofMinisters and other public institutions regarding social. institutional and economic development poli-cies. strategics, plans, programs and projccts; plans and orients, in coordination with the other rcspon-slble ministies, economic and social activities at the national, regional and local levels.

Ministry of Public Works: participates in the planning, design, coordination and implemenra-tion of programs and plans for urban and regional development of the country.

Ministry of Rural Affairs and Agriculture: implemcns policy and administers all activi-ties related to the agricultural sector, including famming and livestock; protection, conservation, restori-tion, development, promotion and control of rational use of all natusal renewable resources, includingforests, watersheds and soils.

The National Secretariat for the Environment (SENMA): a secetaiat ur the Presi-dent's Office with the status of a ministry, responsible for designing and directing all policies andstrategies for environmental protection nationwide. SFNMA was created by the National Environmea-tal Law adopted in 1992.

The government strucure also includes some public institutions that work at the regional and locallevels. These levels are comprised of autonomous institutions and decentalized institutions.

Axt the regional level (depatnents) the General Law of Regional Cporatons for Development crea-ted public institutions with regional competece to coordinatc and prmote social and economic de-velopment thrugh the design and imple on of pogams and projects, to fulfill the nationaldevelopment policies. At the same level, the county Is divided into nine administrative departments:Pando, La Paz, Beni, Cochamba, Santa Cruz, Orm Chuquisaca, Tsuija and Potosf. bese depart-ments are further divided into provinces and municipalities. The capital of every department has amUnidp-ility, thai is administered by a mayor and a muicipal counil. Each municipal section has alsoeither a municpal council or a municipal board (jut) depending upon the populaton number.

Besides municipal authorities, that are elected through popular vote, each department has a centralauthonty representing the executive banch, called Prefecto. Each province has a Sub-prefecto.

C. Major legal lnstruments

It may be helpful to review briefly the categories of laws and regulations in Bolivia. so that readerscan understand the designations of different legal insruments noted below.

17

1. Laws

Laws have higher legal status than regulations. A law (Iey. L.) must be approved by both houses ofCongress (Senators and Deputies). The only highcr legal instrument is the Constitution. A IgaLsdcree(Decret Ley, D.L) is a law that did not go through the usual Congressional approval process becauseit was enacted by a de facto govermment (ie., during a period when there was no democraticallyelected government).

2. Regulatiocs

Regulations to implement a law or to estabBsh other govemrnental procedures are prepared by one ormore Executive agencies. Iheir title status depends on the approval process:

- Supreme decree (Decreto Supremo, D.S.): approved by the President and the entire Cabinet;

- Supreme resolution (Resolucifn Suprema): approved by the President and the responsibleMinist(s);

- Interministeial resolution (Resolucl6n Interministerial): appUes to more than one agency andapproved by all the responsible ministers; and

- Internal resolution (Resoluci6n Irna): applies to one agency and only appoved by the re-zpponsible Minister.

Most of the legal instruments referenced below are ether laws, legal decrees, or supreme decrees.

IL ECONOMIC POLICY (see generally, Appendix IV.2)

The New Economic Policy. establisbed in 1985. meant the change in Bolivia frm a bighly protec-tionist economic system towards a general libealization, domestically as well as in relation to theexterior. Among otlb things, it meant the abolition of the extensive net of subsidies which had dis-torted the economy. Another main issue was te emphasis on expots as the base for sustained eco-nomic growth.

This policy was developed furiher through tax reforms (Reforma Tributaia, 1986) and revisions in theInvestment Law (1990) that were inuended to streamline relevant requirements and cncourage invest-ments in technology transfer and other boosts to pnvate sector productvity and competitiveess. TheNational Development Strategy (MPC 1992) stressed the importance of the private sector in economic,labor, and management matters (and a conesponding shrinking of the state sector within these fields)and the deepening of the reform regarding dentralization and modernization of the State.

Any alteraton in te national governments income from taxes and other financial mechanisms requiresan amendment to existing national legislation; thus, taxes, fees and subsidies may only be establishedor modified through formal legislation. and not through administve procedues. Ihe same is true for

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similar sources of income to municipal gQvernmeats. Under th Sistema Tnbulario Municipal, eachcity hat an annual opportunity to amend Its assessment of taxes and ohacr fees. Minor adjustments inintemst maes, wast collection fees, ctc. only require the approval of the City Council. However, anymore significant change, Including any change in tax structure, requires lhe approval of the naLionalSenat

'Thee are strnger tax incentives for development in tie mining sector than in the industrial sector.More specfic information on economic policy affecting the mining and industrial manufacturingsecUxs appears in Parts 4 and 5, respecively.

mL NATIONAL POLICIES, LAWS AND INSTlTUTIONS FOR ENVERONMENT

A. General aspeots

Government policics for environmental management devclop as pat of a larger agenda of raised con-siousness about environmena concerns and the effeats of pollution on human heallh and econonicproductivity. As environmentalism takes hold as a poitical force, governments follow a patter thatgenealy includes: adopting new environmental legislation; establishing a cental coordinating agency;adopting regulaions for environmental Impact assessment (EIA); setting ambient cavironmental qualitystandards; and adopting detailed regulations for environmental management

Bolivia is following this general pattern Ike many other countries in Latin America. it has recentlybegun formulating policies regarding effective managemcent of natural resources and environnprotecticin, including aspects of pollution control. do1ivia adopted a National Environmental Law(NEL) in 1992. It is now beginning to prepare more detailed regulations and is also developing aBolivian Envinmmental Action Plan (PAAB).

Prior to 1992. "environmental law" consisted of scattered elements in mary different laws and regula-tions, which usually takc a secral approach. Inter-relations among the dient laws and the agenciesresponsible fot executing them were not taken in conideration, resulting in many cases of overlappingor unclear junisdictions. Most of these legal stuctr predated evolvng concepts of sustainable de-velopment to maximize long-term ecmnomic value of key natural resources and to ensure adequateprotection of public healthL Even whee elements of these general principles appeared, they have notbeen implemented effectively. Most of the focus was on natural resource management; there was onlya minimal legal strucue for managing pollution or eavironmental quality more generally, with imple-mentaton only in the area of providing potable wat and basic urban sanitation.

As noted above, thiere are inuumerble actual and potential conficts among Bolivia!s several govem-mental and semi-governmetal insutions charged with responsibilities related to economic develop-ment, natural resources management and environmental protectionL Many of these Initutions haveauthoty direciy affecting each others' mandate and often thdr decisions overlap. In other cases,responsibilities have not been clearly assigned legally to any institution.

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lbcrc Is not a wcll-defined coordinating mechanism across public implementing agencies (ministries)on atras affecting environmental protection. De facto coordination sometimes happens when issuesbecome contentious or become of a national intcresL The means of coordination should be the Natio-nal Council of Economy and Planning (CONEPLAN). Unfortnately. CONEPLAN is able to resolvecontentious issues only at the policy level, whereas the majority of the overlaps or conflicts occur attie operational level.

These challenges wil be intensified by factors affecting environmentally and economically sustainabledevelopment in Bolivia and many other developing countries. such as: the newness of the issues;limited public awareness; the absence of a strong political will; coonomic problems; inadequate base-line data and environmental monitoring capabilities; limited technical, financial and human resources;and the fact at the Government itself owns or operates many of the activities to be regulated.

For Ehe foreseeable future, the Government's ability to implement new environmental programs willdepend heavily on a consensual approach; ruutine enforcement will not be a viable option undl theconsaints noted above have been significantly reduced Since the local public administration haslimited capacity and little prospect of building up that capacity in the short-term, nongovernmentalorgnzations have a potentially important role to play in examining environmental issues at the locallevel with the direct participation of the community.

B. The National Environmental Law of 1992

The enactment of the National Environental Law of Bolivia had as an important antcedent the 1990Ecological Histoncal Pause (Pausa Ecoldgica Historica, D.S. 22407 of January 11, 1990 and its regula-tions D.S. 22884, of August 3. 1991). Ihis Ecological Pause was initially an effort to control timberextraction whidch had gone unchecked for decades. Ihe objective was to stop granting new timbercontracts for five years. In this period the GOB would start land use planning efforts and would Iiti-ate actions to regulate tbe timber industry.

Shortly after, the concept of the ecological pause was expanded as governmcat officials realized that itwas necessary to develop a national environmental agenda, that would go beyond fostry protection.The Ecological Pause. it was cocluded, would have to deal with much more fundamental issues, likethe consolidation and definition of insttutions and processes to meet the environmental needs of thecountry. As a consequence. the need for a national environmental umbreUlla law became evideuL

The National Environmental Law (NEL) became effective in June 1992 (Ley General del MedioAmbiente, Law No. 1333 of April 27, 1992). The NEL aims to prmote sustainable developmentthrough a comprehensive stmegy that encompasses economic and social. as well as technclapproaches. The law encouages decentralized management, with substantial authority to be delegatedto Boliviaes nine d -patamtos. Under the law, the term "environment" Includes:

- urban and rural development and quality of life;- biodiversity and ecosystem conservation;- sustainable use of natural resources;- incorporating environmental concerns into national planning (ecological, economic, social and

cultiral);- environmental research; and- environmental education.

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TIhe NEL states that mG specific requircmeats should be established through secondary laws andregulations, and therefore many sectora laws, such as the forestry law, the mining law, the agrrianreform law, and the biodiversity law, among others, will have to be reformed to comply with theprindples of the NEL. Tbis process is aiready underway. Another change requird by the NEL is thateach ministry is to establish a unit in charge of evimental issues.

The NEL ceated two small new governmeot agencies to help carry out its requirements. Both agen-des began oprating even before the law became cffective.

The Secretaria Nacional del Medio Ambiente (SENMA) (discussed in more detail below) is respon-sible for general environmental coordination wiin the Goverment and for managing the envimnmen-tll aspects of the Sistema Nacional de Areas Protegidas (SNAP). Ihe SNAP Is the only program amawhere SENMA has lead operaional responsbilitty. In all othcr anras, SENMXs duLy is Lu lelp withcoordination and implementation, and in some cases to promulgatc (or help another agency to promul-gate) substantive regulations.

The second new agency is the Fondo Nacional para el Medio Ambiente (FONAMA) (discussed inmore detail below). Its job is to help identify and to some extent shape environmental investmentpniodties. Tbis includes disbursing envionmental funds on behalf of the Government; much of thiswill be seed money to support promising public and private envirnmetal efforts. FONAMA is sup-posed to work in close coordination with SENMA, and the Seetary of SEN1MLA serves as the head ofFONAMA's board.

The NEL was prepared through a consensual, paricipatory process. This fact, plus the emphasis on anirectoral, interdiscipliary appoach, can potentially serve as a good basis for an evolving nationalprogram to promote sustinable economic development his process also laid a good foundation fordevelopment of the BoUvian Environmental Action Plan-

On the other hand, tt1 law as write and as it will be implemented must inevitably eflect constaintsin its stucture. For example, in many instances the law does not spcifically identify the govermentauthrity responsible for promulgating regulations. In other cases, the lead sectoral ministry Is giventhat autbority and instructed to coordinate with SENMA, wiout any guidance on how this is to bedone; SENMA is making substantial efforts to lay the groundwk fr good coordination. Also, evenwith a consensual approach to developing laws and regulations. tir application will inevitably raisemore tensions and present even hardr choices than may have appeared during the drafting stage.

C The National Secretariat for the Environent (SENMA)

SENMA is a secretariat undier the PresidenCs Offce, created under the 1992 NEL, with the status of aMfinistry. It is the official national unit responsible for designing and dircing all polides and stra-tegies for environmmental protection.

SENMA's mandate includes: formulating and overseeing application of the environmental poLicies:introducing the environmental variables into the planning process; planning, codinating and monitor-ing all activities related to the management of the environment; promoting sustainable development;regulating and supervising the activities under its competence in courdination with other public natio-

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nal and local entities; approving or rejecting the Envirommental Impact Assessmcnts of national impor-tance, In coordination with the sectoral ministries and the Dcpartmental Secretariats of the Environ-ment (SEDEMAs); and, promoting land usc regulation programs (ordenamiento territorial) in coordina-tion with other public and privale institutions. regional or local; and mnanaging the National System ofProtected Areas, SENMA's only direct oprational responsibility. Tle Director of SENMA is a mem-ber of CONE'LAN and heads the Board of FONAMA.

SENMA Includes the following techical units: the Directorate of Environmental Policy (Mma includesthe PAAB), the Directorate of Enviromental Quality Control, the Directorate of Proected Aes andBiodiversity. the Directoa of Legal Maners and the Directorate of integrated Resources. SENMA'ssize and cxpertisc arc not adequate to carry out all potential aspects of Its extremcly broad mandate.

SENMA is helping to develop a nurnber of new enviromental laws and regulations, in cooperationwitt the otiler appmpriate institutions. l-bs work is being fianced in part through the Wodd Bank,initially by the Japanese Grant Facility (JGF) and subsequently through the prposed EnvironmentalTechnical Assistance Project (ETAP). r'hich will run until 1995.

JGF projects include: the General Regulations to the National Environmcntal Law, the Rcgulations forEnvironmental Impact Studies, the General Regulations regarding Envirnmental Quality, a newFortstry Law and a Law for Conservation of Biodiversity. SENMA is also assisting Congress in orderto ensure enactment of these laws.

ETAP projecs include work on a National W Law, beginning in August 1993, as well as proposedwork in the following areas: a National Organic Law of Territorial Organization (and use); the generalregulations for enviromnental protection regarding mining and oil ddlling, as well as possibly helpingoter sectoral ministies to apply enviromental quality regulations; an analysis of the existing inta-tional environmental protection conventions that have not been signed and confirmed by Bolivia; and aproposal to reform the procedural system to allow class action or community action even when there Isnot a drect interest at stake. Some of hese scheduled activities may have to be modified In resposeto changing drcumstances; for example, the Ministry of Energy and Hydrocarbons is already drafingenviroamental regulations and the Ministry of Mines plans to do the same in the near future.

Under the ETAP, SENMA wi also caffy out other activities relaed to legal and institutional ares,such as: training regarding environmental legislation through various seminars; the installation andoperation of a data base for the legal unit and other users (SENMA has been receiving also the assis-tance of the IUCN and PNUMA-ORPAL of Mexico in this matter); follow-up to 'Agenda 21". theblueprint for acton developed at the 1992 U.N. Conference on Environment and Development; and thepreparation of information bulletins.

To supplement these speiLfic tasks, SENMA is also engaged in a general analysis cf all existing legalprovisions regarding environmental protection.

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D. The Departmental Coundils for thei Environment (CODEMAs) and their DepartmeotaSecretarlats for the Environment (SEDEMAs)

Ihe NEL also established Dcpartmental Councils for the Enviomnent (CODEMAs) in each deparsa-menro of the coniy, as organisms with the highest decision making power regarding environmentalpolicy withn teir jurisdictions: to approve and cnact enVironmental regulations to be applied withintheir deparramevno; to supervise and control all activities of the SEDEMAs; and to pmpose lists ofcandidates for Departmental Secretary of the EnviromnenL These councils have the power to approveregulations related to tbe management of (hc envirament applicable within their territories.

The NE also crated the Depamntal Scrctariats for dic Eavironment (SEDEMAs), decentalzedunits under SENMA. to help the CODEMAs by providing tecnical assistance and operational support.The SEDEMAs would execute the policy of the CODEMAs and help to ensure that these polices areconsistent with national environmental policy. These secretariats are not yet opeative and there Is aparticular concern regarding the staffing of these offices due to the lack of qualified personnel in mostof the deparramentos.

To help meet the need for more personnel with environmemal training, USAID plans to send to theUnited Stated fifteen teUows, to obtain master degrees in areas related to eavIronmental managementand pollution control. Each depanamento will pmvide at least one fellow. The fellows will also in-clude at least two or three persons who would specialize in mining and environmenL

E. National Environmental Fund (FONAMA)

Financing of envimnmental projects is the direct responsibility of FONAMA (the National Envirn-ment Fund). a public institution created by the NEL of 1992.

FONAMA has the role of organizing al the public investment in conservation, sustainable develop-ment and environmental protection. To support and expand the operations, FONAMA has thwee func-tions: technical, administrative and fund-raising Ihe laa includes raising and manging funds, in-cluding design and negoiaton of debt swaps. FONAMA has a s-teerng committee formed by:SENMA represented by its National Secretary. three representatives of the executive branch, threeLepresentatives from CODEMAs, and one representative of the local NGOrs.

FONAMA is an umbrella fund composed of funds, each with its different characistics and objec-tives, as determined by the source and purpose of the funds obtained. In order to comaply with therequirements of every donor regarding management and use of specific funds, FONAMA has separateTechnical Committees to oversee management of funds from different sources; each Technical Com-nitmee is organized accoding to the requirements of the corrspondig donor organization.

The Technical Coordination Unit (MCU) of FONAMA is responsible for incorporating all the projectsftat are received into a project portfolio, whidh if appoved is integrated into the national projectportfolio under the responsibility of MPC. Once this task is completed the TCU organizes the porfoliointo a national environmental public investment progam. These activities are intended to help meet thepriorities to be set thrugh the Bolivian Environmental Action Plan.

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F. The Bolivian Environmental Actiou Plan (PAAB)

In 1991. the GOB and the interational aid agencies discussed for the first time the need to prepare aPAAB. The PAAB is a project under the rcsponsibility of the Directorate of Environmental PoUcy ofSENMA. The purosc of this plan was to design policies and to idenfify priorities for environmentalprtcon. In 1992 SENMA, with the financial assistne of the USAID tlrugh the PL-480 programand the World Resour Insttute, sarted to develop the PAAB.

Tne general objecives of the PAAB arz: Establishing a normadve and Institutional framework thatmakes possible to incorporate environvental issues into the national and regional development poll-cies; formulating systemaically naional and regional envimental policies. that guide the implemen-tation of specific projects and activities by SENMA, FONAMA, MPC, and the other sectoral institu-tons; promoting the study an analysis of mattes relted to enviromental prteion, by rsearch andeducational canters, community groups and NG(ls, at the national and regional level; and, exposing tothe public knowledge the actvities and accomplishments of the PAAB, thorough the mass media,nationally, regionally and intemationally.

The process of developing and implementing the PAAB involves diagnosis. discussion and conflict

resolution with all possible interested public and prvate paries. The PAAB is intended to estabUshand direct a permanent process. The unit within SENMA iD charge of the PAAB wiU help to defineand implement PAAB polices and priorties on an ongoing basis.

Bolivia held a National Workdshop for Environmental Planning in August 1992 to draw together pro-posals for a national environmental policy. The PAAB stiU needs to contain more opeonatinal detailsand other refinements before it can be implemented effectively.

G. Laboratory capadty and monitoring capabiliUes

The development of regulatory mechanisms has to be suppd by anytical competce and capactyin order to determine chemical and physical parametes. Such services are needed both to determinethe baseline conditions and to measure effluents causing clenicall/pysical contamination. e aremany laboratories in Bolivia (private, state-owned and at universities). which are rather we equippodwith the necessary facilities, i.e. sample preparation, instruments for anaysis. and computerized calcu-lation/ presentation of results (see Appendix IVA). However, there is a general lack of resources formaintenance and service. Highly qualified personnel are also scarce. The consequence of this is thatthe available analytical inrstucture is poorly utized and often badly maintained. The reason for tbisis the poor market for seliag analytical services and the lack of resources for researdL

Quality assurance appears low. at least in those laboratories dealing widt chemical contamination ofnatural systems, and there is no established routine for international intercalibration studics. This is aserious deficiency, as quality control of analytical data is of fundamental importance for technical,scientific, as well as legal considerations.

Monitonng activities and capabilities within the envimnmental sector in Boivia, are very restricdThe main activities are connected with communal waste water treatment plants and internal processcontol within certain well n inldustuies. Systematc monitoring by authrties is virtaly lacking andregional surveys are only camed out within international cooperation projects. The 'Troyecto Especial

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del Lago Titicaca (PELT)", with support rom the European Community, is the only major project ofthis latter kind. Of the few rsm=arch projects addressing particular envionmental problems related toindustrial activities, only the Lidema study regarding alluvial gold mining at the border with Brazil(LIEMA 1992) comprises more ambitious research and monitoring (spread of mercury).

IV. ENVItONMENTAL IMPACT ASSESSMENT

The National Environmental Law (articles 24-28) outlines a fraework for envixonmental impactassessment (EIA). SENMA Is responsible for preparing Environmental Impact Statemenb (EIS) basedon ELAs for projects requirng review that are national in scope. For projects that are not national Inscope, the responsibity lies with the sppropriatc sectoral. regional or local authority. In these cases,the EIS is to be formally issued by the mpprpripate SEDEMA. subject to rafication by SENMA.SENMA and the SEDEMAS are rsponsible for monitoring cmis process and implementation of theEIS recommendations.

SENMA is now preparing an initial regulation on EIAl Ther is a great need to huild the capability tocarry out EIA work. both within and outside of government.

V. USE OF LAND AND NATURAL RESOURCES

A. Planning and development In general

Planning in general is done at three diffaernt levels. Ihe Naional level is the responsibility of theMinistry of Planning, the sectoral level is the reponsibility of other ministries and oter public institu-utons, and the local level is the responsibility of the municipalities. Additional planning responsibilitieslie with Ic Regional Corpomtions for Development (RDC), public insttutions with departmentalcompetence to coordinate and promote social and economic development

Ihe folowintg subsections will examine aspects of planning for land use and natural resource manage-ment planning that apply most directly to mining and manufacStuing industry However, it is importantto bear in mind that these issues are linked to much broader planning issues as they relate to ohersectors, especially agriculture, forestry development, and conservation of biodiversity, as well as con-flicts between urban and rural areas.

The GOB is currently drafting several laws that will affect resource planning and management: Na-tional Water Law; Foestry Law; and Law for Conservation of Biodiversity. Additionally, SENMAplans next year to begin woring with the Congress and others on the National Organic Law of Terri-torial Organization (land use), mandated by the NEL of 1992. (These various laws are discussed inmore detail in Appendix IV3.)

Bolivia does not have an effective policy or legal mechanism for seting priorities and addressingconflicts among competing uses of land and natural resources. Unformnately, the carrent difts of theabovementioned laws are unlikely to prove adequate in this respecL Perhaps it wil be possible to

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tacwle some of these Issues thwgh the National Organic Law of Terrtorial Organization. It is not yetdcear what concepts this law would embrace, but it is likely to include at least some aspects of urbanand rural planning. Flexibility in the kamework of this law and its implementing regulations will benecesary to adapt to the national development process as it evolves.

B. Urban development

Regarding the use of land for urban development there are three institutions with similar responsibili-ties: the municipalities. te Ministry of Urban Affairs and the Ministry of Public HealUL

Municipalities have planning responsibilities at the local level. Ihe Municipal Code, article 9 liL 1.gives to municipalittes the competence to elaborate, approve and execute urban development plans atthe local level. Municipalities traditionally have concenuated their efforts in the urban areas, lackingthe capacity to plan for rural areas.

Article 9. lit. 17 of the same code, assigns municipalities the duty to preserve the environment, controlpollution and maintain the ecological equlibrium. in coordination with the Minisny of Public Healthand the Ministry of Agriculture.

At the urban areas, the municipalities should also provide all necessary public senrices and administerthem. i.c. potable water, sewerage systems, solid waste disposal, etc. Ihis gives implicitly the munici-palities competence to overse all aspects of pollution control.

The Ministry of Urban Affairs (MUA) is the highest sctoa authority with competence to definepolicies for urban development and enact generally enforceable regulations for the sector. It mainly aregulatry agency and not an implemening agency. 1Te MUA has prepared and enacted regulationrlated to the construction of potable water and sewerage systems as well as sanitary facilities inbuildings.

The Ministry of Public Health, under the Health Code of 1978. has some responsibillties regardingenvironmental protection and pollution control, although urban planning in geneal at the local level isa duty of the municipalities.

The Ministry of Publc Health has dirc responshility to control that health standards are met in allsorts of constructions and buildings, including aspects like the following ( Health Code, articles 46-52): all new urban development, the expansion of existing towns and cities and the construction ofnew neighborhoods; and, the health standards for consuction and functioning of thters, cinemas,sports facilities, hotels, restaurants, tansporLation facilities (airports, harbors, bus stations). It is also

2 1n terms of recoiling urban and rural development, one necessary step is a comprehensivereview and integration of all laws and regulations conceming the planning and organization ofrural and urban areas, regarding: land use; the administration of public services (water, sewerage,and solid wast); the environmental and health control in the urban areas; the authorization forpartition of parcels and lots; building of public and community inhfastcwme and services; all newurban development (neighborhoods), the expansion of existing towns and cities and the constuc-tion of houses, office and apartment buildings and public works (roads); etc.

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allowed to inspect at any time houses, ofrice and apanment buildings, etc., to control health and safetystandards.

Cr Rural development

National planning and management regarding rural land use is almost nonexistent, both at the policyand operaional level. Social structures in Bolivia. especially of many indigenous peoles. is closelytied to the land. This makes land reform parficularly difficult. even where some political will exists.Use of rural land prmarily responds to the individual decisions of the owners or to the always increa-sing demographic premsure.

At the sectoral level, serious efforts to establish a patern of soil utilization have been Implementedwithout tangible results. The Law of Agaraian Reform recognizes a system of land use capabilityclassification (articles 97-100) but a national mapping to actually classify the soil under those para-meters has not been performed. The oaly other signifcant refcrence in the same law, relates to theofficial recognition of rural towns and communities. with the purpose of including them in the plan-ning process to provide them with basic services and other necessities for development (article 101-113).

D. Water resource management

All hydraulic resources are property of the State. TIe concept of hydraulic resources includes surfaceand undeground waters. The rivers and all river beds are public property (Article 136 of the Constitu-tion) and also the lakes and lagoons located in public property.

There are some regulations dated 1906 for use of waters that were enacted thugh decree. Theseregulations provide a legal framework for surface and grund water allocation and use, and also in-clude provisions for drainage systems usage and the right of access on public or private property touse hydraulic resources. However, there is no general law or set of regulations for water managementin Bolivia.

Under the Organic Law of Municipalities of 1985. municipalities have to pmect all natrl resources(including water). In order to do this, municipalities are able to enact ordinances that are enforceableonly within thir territories.

Bolivian law also allows the creation of regional institutions for management of river basins. SEARPI(Servicio de Encauzamiento de Aguas y regularizacifn del Rfo Piraf in Santa Cruz) was created in1983 and Is based in Santa Cruz. This institution is a public autonomous organism with competence toimplement all necessary actions to regulate the Piraf river, including coordination and planning ofsocial and economic development within the basin, in order to preserve and protea it. It is not clearhow the powers of this kind of institution are coordinated with te duties and powers of other sectoralinstitutions, but it seems a very interesting approach to management of river basins beause it givesone entity the power to plan and implement holistically; this could be considered as a possible modelfor other water bodies in Bolivia.

Several drafts of a national water law were prepared during the last decade, but none of them had

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enough political support to be enacted. Aa noted above. SENMA plans to help the GOB develop agenera wale law, with assistance from the World Bank proposed ETAP prjecL It wfll be impontduring this process to review comprehensively all existing regulations and to define clearly the compe-tence of each relevant institution.' Improved institutional rsources will be a prerequisite to betterwater management, including water quality monitoring and related data management capabilites.

E. Potable water and sanitation

This subsection will briefly discuss potable waer and sanitation. with an cmphasis on institutionalresponsibilities. The following section on environmental quality will discuss water quality and manage-meat of solid and hazardous wastes in more detail.

1. National institutions

Both the Ministry of Public Health and the Ministry of Urban Affairs have jurisdiction over potablewater and sanitation.

In 1978, the Code of Health (D1. No. 15629 of 1978, Articles 32-38) gave the Ministry of PublicHealth the duty to regulate, oversee and control the quality of aU water used for human consumption.ibis included authority to determine the national policy for sanitation of all bodies of water and estab-lish measuements to control all solid and liquid industrial discharges. The Code also gave theMinistry of Health authority to determine national policy on solid waste management and to administerand operate programs to dispose of solid waste (Articles 39-42).

In 1985, The Ministry of Urban Affairs enacted Regulations for Disposal of Industrial Waste intoBodies of Water. Ministerial Resolution No. Ol(85. These reguations gave competee to theMinistry of Urban Affairs, the Ministry of Public Health, the local lnstimtons and the decenraizedorgansms of the ministries.

Then in 1991, a supreme decree (the highest category of regulationj designated Xt Ministry of UrbanAffairs as the institution with national competence in basic sanitation, inluding the task to reorganizethe administaive sector to control these matters. (DS. 22964f1991). D.S. 22964 defines the sanitarysector to compr potable water and sewerage systems, effluents and discharges, management of solidwaste and environmeal poUution control. All functions given in previous regulations to the Ministryof Public Health, plus the personnel and equipment of its Directorate of Environmental Sanitation,were legally transferred to the National Dretora of Basic Sanitation of the Ministry of UrbanAffairs (DINABSA).

The Ministry of Urban Affairs. through its National Directorate of Basic Sanitsaion (DINABSA), hasnational jurisdiction and competence to organe the national system of basic sanitation (potable waterand sewerage). ibis indludes: plannmng at the national sectoral level and coordintng with all pertinentnational and intnational organisms; regulating the design of water and sewerage projects; priotzing

3SENMA should consider organizing an Executive Committee for the Protection of HydraulicResources to promote this process.

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all plans and projects of basic sanitation tp be implemented by any public or private entity with theobjectivc of including them into the National System of Investment; organizing all national pm-invest-ment programs; coordinating that regional programs comply witti the national planoing; supervising thetariff policy and assisting all institutions involved with water projects (e.g.. Departmental Directortesof the RDCs, local water enterpises, municipalities, cooperatives, committees, juntas and NGOs).

The legal status of the two Ministries' responsibilities reginhing potable water and sanitation is Still notenfirely clear.4 However, as a practical matte, the Ministry of Public Heallh teids to be more involvedwith operation tsks, such as inspecing sanitary cobdtions in regulated facilities, whereasDINABSA in the Ministry of Urban Affairs plays mainly a normative and planning role. DINABSA isnot implemeating or exccuting any infrustructure projects, although it is assisting in the design phaseof projects and also in allocating resources. The Social Investment Fund (FIS) would be financingprojects through hiring of construction companies. There will also be one mlllion USS available forpre-feasibiliuy (pre-inversi6n) studics tO die provided by the World Bank

2. Municipal institutions

The Ministry of Urban Affairs enacted the General Regulations for the Management of Solid Waste,D.S. 14368 of 1977. These regulations confirm the competence of municipalities to administer publicservices such as solid waste management and authorize municipalities to delegate the adminismufion ofthose scrvices.

Under the Organic law of Municipalities of 1985. the municipalities have to offcr scrvices such asPotable water supply and sewerage system. However. muncipaLlties under te Organic Law of Munici-palities do not have the competence to regulate potable water quality.Municipalities do have specific authority to regulate specfic aspecs of solid wast managemenL

D.S. 22964 authoized the creation of local organisms. which could be eithr public or private, toadminister and provide basic sanitary services. Potble water services are currently administered inalmost all cases by water entprises, whiich have a direct participation of the municipaity within theirboard of directors. In some cases, like in Santa Cruz, the community has a direct participation in theadministration of SAGUAPAC, the water company.

3. Departmental instittions

D.S. 22964 dissolved the National Water and Sewerage Corporation and assigned its duties to theRegional Development Corportions (RDCs). Each RDC has a Directte of Sanitation that is respon-sible for waler quality and sanitation in areas where local govemments lack authority or capability.Thus. the RDCs work with national and local institutions concerning planning and technical assistancefor water quality and sanitation, usually concernig inteactions between urban and rural areas orplannig for new development in rurl areas nr existing citeL

4bis is because the 1978 Health Code is a law (Decreto Ley), whereas the 1991 documentgiving authority to the Ministry of Urban Affairs is a regulation (Decretro Supremo). Laws havehigher legal status than regulations. as explained in Part I above.

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VL ENVIRONMENTAL QUALITY

A. General aspects

Most of the relvdy few lega requircments concraing pollution control and othe aspects of cn-vromental quality havc nevcr bocn implemented, aside from the provision of potable water andlimited sanitation effonts in some urban areas. The National Environmental Law of 1992 assigns toSENMA the responsibility to estabUsh general standards for environmental quality. However, the NELdid not address now this authority affects the Status of preexisting legal requirements and institutionalauthorities.

SENMA is beginning work on a Regulation on Environmental Quality that will provide a generalframework for activities in this area. Its main purpose will probably be to introduce key concepts, suchas seling goals for environmental quality and promoting polution prevention, and to establish basicapproaches to achieve these goals, in coordination with the appropriate institutions. Some of the sug-gestions for Recommended Priorities that appear in Part 6 may help with SENMA's work on this newregulation.

B. WIater quality

As discussed above. in Part 3, dcapter V-D. national, local and regional institutions have responsibilityfor different aspects of potable watr. In practice. implementation of water quality requirements occurspixmarily through the work of the urban watcr enterprses. They normally apply the recommendedpotable water standards of the World Health Organizaion. The degree and efficacy of implementation-anes widely among the different municipalities; the cities of Santa Cuz, Taija and Cocabamba treat

some of their domestic and inlustrial waste waters. A centrlized national system of vwat quaitymonitonng has not been implemented, although an informal system called Program for Quality Controland Water Monitoing (Pfograma de Conrol de Calidad y Vigllancia del Agua), has been operatng forseveral years, with some participation from the private sector.

The Regulation for Disposal of Industrial Waste into Bodies of Water. enacted by the Ministry ofUrban Affairs in 1985. has never been implemented. The regulation sets the following priorities forwater use: humna consumption, consevation of biodiversity, recreation, irrigation. industrial use, andwaste discharge. Under these provisions a body of water could be destined to more than one tye ofuse and therefore bodies of water are to be classified based upon their ictended use in 5 categories.

The Regulation eontains a table that provides the physico-cbemical and biological parameters to classi-fy bodies of watcr in any of the categories mentioned and all industries (including the mining indus-tries) have to treat their effluents. All industries are supposed to register their effluents and file adeclaration (certficado de conczrmiento) detailng the expected effluents and the proposed ureatmenLFillng should be done prior to registration of discharges with the Ministry of Exportation and Econo-mic Competitiveness (MECE) or the Ministry of Mines and Metallurgy (MMM. Registrion of alldischarges should have been done within a specific peiod of time: two years for all existng indus-tries. one year for industries being installed, and three months for all new industries. Based on thedeclaration, the competent organism (although it does not say which one, it is safe to believe that itrefers either to the MUA or the RDC) should issue an authorization for discharges that is an indispens-

30

able rnqisite for industries to obtain Olx operation pemit from thc municipalIties or prefecturas. orother competent organisms, such as the war entcrprises.

This Regulaton soems to be drawn from cxamplcs in other countries, with litale consideration ofpriorities or dirmstances in Bolivia. In many respects the approaches mandated in this Regulationmay not be best suited to the realides of envimnmental management in Bolivia. SENMA considerswhether and how to modify the requirements of this Regulation (or promote implementation of usefulaspects) as part of its work to prepare the new Regulation un Environmental Quality.

C. Solid waste management

Bolivian law generally treats solid waste management as an aspect of preventing contaminaion ofsoils (e.g., the Code of Health, the Organic Law of MunicipallUes, the law regarding agrochemicals).

Implementation of the existing national and local requirements is very deficienL Some municipalitiesor urban water and sanitation cntcrpriscs usc public services or contractors to collect garbage anddeposit it in local dumps. There are apparently no sanitary landfills and there is no segregation ofdifferent types of waste at the dumpsitcs.

Te Ministry of Urban Affairs is conducting a study in several cities to determine how to improvewaste management and whether to privatize thes services.

D. Hazardous waste managenent

Tee are no national requirements for hazardous waste management other than the 1985 Regulationon Disposal of Industrial Waste into Bodies of Wat. which has never been enforced. Bolivia hassigned the Basel Convention of Transboundary Movement of Hazardous Wast, but the BolivianCongress has not yet ratified the Convention. In generAl. ther are no legal requirements for hazardouswaste management at the local level. Two notable exceptions ae the operaion of the industial esatein Santa Cruz, and the restrictions on discharges of tannely effluents In central Cochabamba- Both ofthese examples are discussed in Part 5 below.

E. Pestiddes

MACA under the Law of Animal and Vegetation Control (Ley de Control Fitosanataio) is the institu-tion in charge of authoring the importation and use of pesticides and other substances as well asmonitoring and preventing soil pollution due to iadequate or illegal use of pesticides.

Regarding control of use of pesticides, MACA is not canying out any activities and even a committee(MACA. SENMA. APIA and MPH) that was formed last year to review the law and the procedrshas been completely inopertive since the fist meeting.

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F. Air polluton

The Health Code of 1978 (D1. 15629) gave the MinistLy of Public Health the duty to oranze,through irgional and local organisms, the elimination and control of air pollution. 'he Ministry neverissued regulations and these provisions have not been implemented. Ihe NEL of 1992 gives SENMAauthority to regulate in ftis area, and the upcoming Regulation on Environmental Quality will pro-bably include some reference to air pollution.

The GOB rently established a Multisectoral Technical Commission to carry out a pilot project tocontrol air pollution in urban areas. pursuant to a D.S. 23347 of December of 1992. This pilot activityis to be the first step In establishing a National Program for Air Pollution Control- The commssionincludes membership from SENMA, MPH, MEH. MnCPA, MUA. MECE, MEC. MACA and theNational Police. Each participating institution has issigwed individual responsibilities for helping tocarry out this project rhe project Is still being designed. with implementation scheduled to start laterin 1993. SENMA is already conducting some monitoring, with the assistance of the Mexican govern-mcnL

G. Selecting regulatory instruments for environmental management

Regtlators in both industrialized and developing countries have shown a strong preference for quanti-ty-based approaches (QBA) that require pollutecrs to reduce the amount of pollution so that total con-tamination is restricted to a targeted ambient limiL IThis preference Is likely to continue, despite thetheoretical superiority of ptice-based approaches (PBA) that rely on market forces to help allocateenvironmental management responsibilities more efficacitly. (See Appendix I for a more detaileddiscussion of these issues.)

There appear to be sound reasons why QBA has evolved as the major regulatory system for pollutionmanagement However, regulatcxy systems should use a mix of QBA and PBA instruments, with PBAserving as an important omplement, especially to help reduce the c06ts of regulation and to raiserevenues.

There are no ready formulas for selecting the best mix of regulatory instrtments. Instead, regulatorsmust be aware of the comparative advantages and disadvantages of the various QBA and PBA instru-ments and combine them as seems most approprate in a particular situation. Successful application ofany of these instruments calls for carefl monitoring and adjustment of the regulatory program asexperience and institutional capabilities incruse.

Bolivia is at the earliest stage of selecting regulatory insments for environmental managemenL TMheinitial work on enviromental quality regulations is focusing on quantity-based approaches, with draftrequirements in areas such as waste management and air quality.

The Government will also need to explore possible price-based approaches - for example, wheherand how to establish a basic pollution charge that would generate revenues to help fund new envirn-mental management efforts and perhaps encourage reduced pollutio. A complicating factor in Boliviais that introducing any change in the national government's income from axes and other financialmechanisms requires an amendment to existing national legislation, as noted in Part II above on eco-nomic policy.

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H. Human resourcs

iTe human resource base, available in BoUvia, and capable of taking pant in environmcntal workappes to be rlatively boad. A detailed assessment of the number of persons available with differentquafcaions within different public or prvate bodies has rXt been underaken as a part of this Sec-tar Assessment However, a prelminary estimate of the iumber of people in Bolivia having expe-rience in thre fields of wat resourc management or who have had at least some experience of envi-ronmental management in geneal, arives at a figue of aound one tiousand (professionals and tech-viclans). Only the public entepriscs responsible for water and sanitation in the various departments ofthe cottny account for a total staff of 1.800. among which 9% are professionals and almost 20%techicians. Highly competent persons wre also found for example in the 14 chcmical-analytical labora-tories assessed (see Appedix IVA), In several of the scientific-technical university institutions inBolivia, as weCl as In the consulting firms and In some private or stale enterxises (e.g. the CESICA ofthe State Oil Company. YPFB).

Within the mining sector, those with a direct experience of environmental questions may be estimatedat around one hundred persons.

These preliminary estimates indicate: a) that there exists a sound and sold base of human resources tobuild upon for the future, and b) that tee Is a need to broaden the existing resource base and tofurther develop its competence Mmugh an ambitious education and training program. covenng variouscategories of personnel as well as the diverse needs for the futme

Within the nongoveumental community, a large number of organizations (NGOs) are active inaddressing the needs of the population in generaaL Even if the social issues dominate, an appreciablenumber of groups are active within the environmental sector. Sometimes such NGOs serve as coordi-nators for the execution of multidisciplinary sudies, with finncin from abroad and including scien-tists fom Bolivian universities and state organizatons. A good example of such a program Is thepioneer work carried out unde the coordination of LIEMA regarding the envirnmental situation inthe gold exploitation areas of nmost Bolivia (see Pawt 4. chapter mhF).

VIYL OCCUPAIIONAL EFALTH AND SAFETY

Bolivia has a fairly elaborate legal and institutional structue for pcotecting the health and safety ofworkers. However, awareness of and compliance with these safeguards vares widely.

A. Legislation of Occupadonal Health

Mmhe area of occupational health Is govrened by various laws and regulations:

- The General Labor Law of 1942 and refonns;- General regulaions to the General Labor Law, D. NoQ 224 of 23 of August, 1943;- Regulations of Hygiene and Industrial Safety. D.S. No. 1694 of July 29 of 1949;- Ihe General Law of Hygiene, Occupational Safety and Welfare, DL 16998 of 1979;

33

- Procedura Code of Labor. D.L. 16896 of 25 of July of 1979;- Regulations of eform of the Social Security System, D.S. of June 1987; and.- Regulations of the Boivian Institute of Social Security.

Articles 67-72 contain general pinciples regarding this matter. As a genw statement employers areobliged to scumr te life and health of histher employees. To Utis end the employer must take almeasmes to prevent nd minimie pmofessional accidents and diseases. by means of providing workerswith a suitable place of work, adequate ventilation systems, sanitary Installations, and In geral bycomplying with all existing regulations.

Every Industrial or commercial facility that has more than 20 employees must have inl:rnal regulationsaddressing health and workers' safety that are legally approved by the Ministry of Labor. These facili-ties must also have fee medical services and a pharmaceutical supply availabic for wodrers -whenmore thn SO- and have to comply with the minmum regulations estabUshed by the Miaistry of PublicHealth. If an Industry Is not able to support these services, the Ministry can compel the Industry tojoin in a consortium of industries to provide a cooperative service.

Mhe Code of Labor. articles 79 to 92. establishes all the general provisions regarding professionalrisks. Ihese provisions include the obligation of the employer to compensate his/her employees in caseof professional ilness or accidents. regardless of the existence of negligence in part of the employee(artcle 79) and to compensate the corresponding familes is case of death

To complement the previously mentioned regulations, there is a General Law of Hygiene,Occupatonal Health and Welfare of 1979. Ihis law addresses the genemal rules to control andmonitor occupational health issues. including the duties of employers and workrs, employment ofwomen and minors, and the institutional frameworlkis law also regulates conditions at the place ofwork (infrastructue, windows, escalators, elevatos, lighting, ventilation, sanitary facilities, roads andexits, electric equipment); flire prevention measurements (bandling of flammable and explosive sub-stances). protection against machinery and general handling of tools, steam machinery, ovens anddryers, tanspoaon of matials and ansportation equipment, transortation and handfing of danger-ous. toxic or radioactive substances, usage of safety equipment (gloves, uniforms, helmets. etc.). andfinally general maintenance.

Me Reguladons of Hygiene and Industrial Safety, DS. No. 1694 of July 29 of 1949 were enactedbefore the Law mentioned in the preceleat paragraph and created the National Directorte of Hygieneand Industrial Safety now the General Directomate of Hygiene, Occupational Health and Wel:are and tseems that is still applicable because in general it does not contradict the laws enacted subsequently.

B. Institutlonal framework for Occupational Health

The General Law of Hygiene, Occupational He;Jth and Welfare of 1979 establishes the institutionalframework for reuating, controlling and monitu.g occupational health Issues. The main instiutionsor organisms involved are:

- The Nationa Councl of Hygiene. Occupational Health and Welfare;- The General Directorate of Hygiene, Occupational Health and Welfare at the Ministry of

Labor, and- The National Insfitute of Occupational Health (INSO).

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Te National Council of Hygicne. Occuptional Health and Welfare is formed by the Minister oflabor. the Ministry of Public Health. the Miaistry of Mining. lhe National Dirco of Hygiene. Occu-pational Health and Wdfar, the Executive Dirctor of the Bolivian Instiut of Social Secuity, theNational Director of the National Instute of Occupational Health (INSO). a representative of theworkers union (Central Obrera Boliviana) and a resentative of the Confederaton of Privatc Enter-prises. The Councl has the power to produce aD policy in this area and also is in crge of institu-tional coordination. It seems that the Council has not been able to fulfill these objectives. In factduring the last four years the Council did not meet and only recently It has started meetng againL

The Gcnera] Dirzct of Hygicnc, Occupational Health and Welfare at the Mnislry of Labor(1IOHW), is the operative unit in charge of supervising compliance with the Gcneral Law of Hygicne.Occupational Health and Welfare of 1979. liis institution has Occupational Health Inspetors. Inchare of receiving and processing complaints and repots regarding professional accidents or illness.Iibs unit is located in La Paz and only has six inspectors to ake care of aWl reports and complaints inthe country. The General Dirtorate does not have units in other departments or cities of the country.When a complaint or a rmport is received in other cities, the local labor inspectors handle it and onlywhen there is a disagreement between the inspector and the parties involved (employcr or cmployee), aoccupational health inspector from La Paz would then handle the matr

Regarding monitoring and evaluation, all Industries have to fiL in a questionnaime (DA2) every threemonths and send it to the GDHOHW. Iibs questlonnaire contains information regarding all accidentsand illness occurred in the industry in the last trimester. It seems that the information collected has notbeen used to produce scientific data regarding most common accidents and illness and possible waysto prevent them. Furtemore, because of the lack of persnel. the GDHOHW limits itself to inspectindustries that have been identified as of high risk level and therefore an important percentage ofindustes Is never visited unless an accident or illness is reported

All individual accidents and illness have to be reported by the employers, sending to the GDHOHW aquestionnaire DAI. also available at the National Health Fund- Information gathered suggests thatalmost 40% of all accidents and illness are nevcr reported beause employers and employees reachdirect agreements. Only when direct agreements are not reached do employers file reports or em-ployees file complaints. In the case that either the employer or the employee or both disagree with thedecision reached by the occupational health inspector, the case is sent to courL riLtain the judicalsystem the cases regarding labor issues are decided by the Disuia Labor Courts and then on appeal bythe National Court of Labor. Only by certiorari (casaci6n) are cases revised by the Supreme Court ofBolivia. If the court niles that an employer failed to comply with the existing regulations, a fine couldbe established, manging hom 1.000 to 10.000 bolivianos (US$ 250 to 2,500) based upon the serious-ness of the case.

All idustries must organize committees (comitds mixtos) to oversee that all occupational health andsafety regulations are obeyed. These committees are formed by an equal number of representatives oftne employer and fte employees. Apparently these committees are very infrequently organized

Industries also must have a department of hygiene, industrial safety and welfare depending upon theratio of accidents and illness they had and also the number of workers It is not clear if this is maida-tory because there are no clear regulations regarding who makes the final decision to make an industryceate such a deparcmenL

35

Mhe General Direcroate is preparing drafls of various regulations: Health and Safety for ConstructionWorkers; Medical Services to the Provided by Companies; and Reguiatioas to Use Asbestos. hee isno pmvisions regarding health standards for the mining industry and the Ministry is not currentlyworking is this area

The National Institue of Occupational Health (INSO) is a national Institution that mainly does re-search and evaluation activitis and traininp. it has 50 peple worling there and It has four depart-ments. Hygiene and Industrial Health. Labor Medicine. Planning. and Administiation and Services.

VIL FOREIGN ASSISTANCE

Most intenational organizations are providing some support to environmental protection and manage-ment in Bolivia. although direct assistance to control environmental pollution is much more limited.

The Woldd Bank trugh the rA? project would be financing the most important project in this area,that would include stuengthening of SENMA and FONAMA. prepamtion of laws and regulations andenvironmental education. A consideable part of the project would deal with the implementation of theregulation for environmental quality.

The Inteamerican Development Bank currently does not have an eavironmental project to assist theGOB. but it has a Project for Urban Development and Sanitation (PRODULSA) that includes potablewater and sewerage systems and strengtening of municpalities. The same is appUcable to USAID andthe GIZ that harve conceantmed their effort in urban sanitation.

On the other hand, the Office of Cooperation of the Netherlands. would finance through FONAMA(US$ 3.000.000) and LDiDEMA (US$ 500,000) smali projects, some of them rdated to pollution,monitoring and training.

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PART 4: ASSESSMENT OF THE MINING SECTOR

L INDUSTRIAL STRUCTURE

A. Hlstorical perspecdve

Since Colonial times, mineral exploitation has been a major occupation in Bolivia. For most of tieperiod since then, mining has constituted the main source of foreign currency, has contributed substan-tially to fiscal income and has played an important rolc in politics. After being focused for severalcentuies on the production of silver, mining during the latter part of the 19th century gradually shiftedinto the exploitation of tin. The peak in tin production occurred in 1929, but the commodity remainedof prime importance right up to the collapse of the world tin market in 1985. As a consequence of thislatter event, in combination with other adverse factors. the dominant mining company, the state-ownedCOMIBOL, has been forced to close many mines and has reduced its worlforce from about 28,000employees in 1985 to about 6,000 employees today.

Since the 1970's, the exploitaton of ores containing zinc, lead and silver has emerged as the main hardrock mining activity. In fact, since 1985 severl tin mines have also been converted to producing thesemetals. This was possible due to the character of the most common ore deposits in the country, name-ly polymetallic veins, containing tin, zinc, lead, silver, etc. in co-existence, or occurring in differentparts of the same deposiL

Simultaneously, gold has arisen as a main commodity through the extensive exploitation of alluvialdeposits in the foothills of the norteasten Andes and in e Amazon basin and through the discoveryof a major deposit of disseminated gold in an intusive rock of the Altiplano. The previously relativelyimportant mining for antimony and wolfram has expenenced serious market difficulties during the lastdecade, resulting in he closure of most mines.

Mineral production in Bolivia declined from a peak of US$ 756 million in gross metal value in 1980to a low of USS 139 million in 1986. Since then a recovery has occurred to US$ 367 million in 1991.Of this, 27% stems from state mines (COMIBOL), 41% from private mines, and 32% frm small scaleand artisanal operations. The 1991 production value in fact represens a production volume which ishigher than that of 1980 but at average prices which are only 40% of those prevailing in 1980(Gustavson 1992). In spite of all problems. indluding the present low metal quotations on the worldmarket, the export of the mining sector officially amounts to more than 40% of the nation's totalexport value (1991).

B. Restructuring of the national Corporacldn Minera de Bolivia

Ihe Corporaci6n Minera de Bolivia (COMIBOL) was formed in 1952 by the nationalization of allmajor private mines, these latter belonging to the three groups of Patfo, Aramayo and Hochschild,respectively. ibis new company soon became a major power center in the Republic with widespreadsocial commitments and political functions. At the same time the technical development and manage-ment was seriously neglected. As a consequence of this mis-management, worsened by falling metal

37

prices. COMIBOL went into technical bazkruptcy in 1985. All mines were closed, temporarily orpermanently, and a far-reaching program for restnucturing was initiated with the support of the WorldBank. This has meant a decrease in COMIBOL's share of the total national production from 63% in1980 to 27% in 1991.

To help solve its economic, technical and management problems, COMIBOL is beginning to Inviteprivate participation In the management and opeiation of its mines through arrangements such as jointventures and leases. Mines that are no longer economically productive will be closed. Ihis process hasrecently gained momentum and the plans are to offer successively, during a two-year period, al re-maining operations for private participation. At the same time, the present COMIBOL wiD be replacedby a aew holding company, which wiDl administer the state's properties. The technical and managerialresponsibilities will be left with the private partner.

As components of the World Bank support to this restructuring process, there will be environmentalaudits of the main COMEBOL properties, as well as legal studies regarding environmental responsibili-ties and liabilibies to help define state liabilities regarding previous envirommental impacts and futureobligations of the state and the new operators. The environmental questions to be addressed are similarto those raised by privatization of state enterprises, even though in Bolivia, the state will retain owner-ship of the nationalized mines (as required by the national Cositution).

C. Major categories of hard rock mining

1. General overview

With the transfer in 1952 of the main mining companies into state ownership, the private sector wasreduced to a number of smaller operations and small scale mining. Based on production and financialcriteria, this private sector has come to be subdivided into Medium Mining and Small Mining. Ihesedesignations are stil in use even though the Medium Mining nowadays has surpassed COMIBOLregarding the size of individual operations as well as total output Thus, after te addition more recent-ly of th category of Mining Cooperatives, a classification is used as presented in Table 4:1.The main mines now active, or active until recenty, are also preseted in Frg.4:1.

2. State mining (COMIBOL)

As mentioned above, COMIBOL is in a process of pnvafizafion through which all of its propertieseventually will be rnsferred to joint ventures or be leased. The heavily over-staffed company (theproductivity in 1991 being only one third of that of the comparable private industry; see Table 4:1) isnow successively laying off miners as well as other personnel. Of a total of 15 mines (only 6 arepresently in operation), 5 or 6 are estimated to be economically viable for forming joint ventures,about 6 will be leased to cooperatives and the remaining ones wiU be closed down. Certain old wasteheaps and tailings deposits, which still contain appreciable amounts of metals, will be handled in thesame way. Apart from the mining properties. COMIBOL also owns the explorion nghs over largetracts of land. The intention is that also these areas wiU be the objects of joint venures. A large num-ber of abandoned mines, waste heaps and industrial sites that require rehabilitation wiU remain aliability of the State (see also secion LB).

38

PII. o

0.

S :e~~~~~

F

3. Medium Mining (Minecra Mediana)

Those private mining companies which fulfill certain criteria regarding production, financing andmanagement, are by law affiliated with the Association of Medium Miners (Asociaci6n Nacional deMineros Medianos). With te weakening of COMIBOL, this group now represents the main forcewithin Bolivian industrial mining, although with a smaller number of employees than COMIBOL.Presently this group has 22 members, companies which range from stable major enterprise withforeign participation to small domestic companies with only minor production. Most of them are welladministrated and have qualified technical and managerial staffs. With the present low metal prices,only a very few of these companies are making a profiL

ibe envimnmental concern within this grup of companies varies greatly. Particularly those companieswith heavy foreign involvement show a genuine interest in solving their environmental problems. Thisis the case with Battle Mountain (majority owner of Inti Raymi) and RTZ. The latter company, beingone of the world's leading mining companies, is a minority owner of COMSUR, a company whichowns several medium size operations in Bolivia (mostly old). COMSUR has embarked upon a veryambitious program of technically developing these properties. Measures include the construction ofnew technically satisfactory tailings dams, recirauation of water, reclamation plans, systematic moni-toring of effluents, the intrduction of moden work safety practices and equipment, and a strongindoctination of pesonne] regarding safety matters.

Table 4:1. Charaterization of the Bolivian mining sector. Note that. regarding production value, noreducton has been made for realization expenses (smelting, freight etc.). which in Boliviaaverages 40-60 % of the gross value. Production value figures are taken from Asociaci6nNacional de Mincras Medianos 1992.

Gross production value 1991 No. of em-

Million US$ % of total ployees (1991)

State mining (Comibol) 99 27 6160

Medium Mining (Minerfa Mediana) 150 41 4010

Small Mining (Minerfa Chica) 118 (total small and 32 7000 (estim-)

Mining Cooperatives (Cooperativas) informal sector) 50000 (approx.)

TOTAL 367 100 67170

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4. Small Mining (Minerfa Chica)

TIhe Minerfa Chica is a heterogenous group of small cnterrses rnging from industnal opaionstreating up to 200 tonnes of ore per day (and thereby being bigger than the smallest enteprises withinthe Mtinera Mediana) to very small family-based activities. Their umbrella organization is the NationalChamber of Mines (Cimara Nacional de Minerfa) with regional offices in 8 diffement places around thecountry. The Chamber esimates that there are at present around 1,000 to 1,500 companies of this

inod, only some of them being members and paying thir fees. A great majority of them are verysmall and do not differ substantially from the coopeatives (discussed below) as regards organizationor work methods. Ihe total number of employed persons within this sector amounts to about 7,000,with an additional 3,000 quanying for industrial minerals. This is less than one quarter of what it usedto be ten years ago.

5. Coopratives

As an old tradition, but much extended after 1985, groups of miners are working small deposits orleftovers in mines which have been closed down; most of these mines are owned by COMIBOL TIhetotal number of such workers is many times larger than that of miners employed by the formalindustry. hibs informal miner may be a "locator" (leaseholder) through an agreement with the ownerof the mine (COMIBOL), or more often a 'cooperativista" i.e. belonging to a cooperafive (againusually with a permit from COMIBOL). The cooperative is usualy, in reality, either 1) an informaltype of company owned by one or several individuals who employ other miners (npeones") or 2) aloose association of "cuadrillas" (groups or gangs; often made up by a family, including children),which serves the purpose mainly of acquiring the permit and selling the product Proper cooperation isthus very limited and the term "cooperativa" is mainly a euphemism for the reckless variety of ente-prise typical for a gold rush milieu.

The methods used vary from simple artisanal work to somewhat mechaized operations with pneuma-tic drilling and the use of wagons for transport. These latter more developed operations are mainlycompanies, in which the majority of the miners are daily workers, without any employment securityand working for an exceedingly low salary. As a rule, the "cooperativa mining takes place withcomplete disregard for occupational health and safety as weU as any environmental concern.

The ore produced is either sold to an industrial plant or teated for concentaion in the simple mills ofthe respective "cuadrillas". Primitive as they may seem, these plants ar often imitating the methodsused by industry, including the use of the same types of reagents. All waste goes to the same river orstream from where the process water is taken. -lhe life of a "cooperativista". or particulady that of hisemployee, is generaly very hard. physically dangerous and hazardous tD bealthL It is based on thepersonal need for survival by exploiting ores wbich by all normal standards are uneconomic to re-cover. It is a situation of social emergency which cannot, for financial reasons, be changed to anymajor extent; i.e. any essential improvement of the situation requires an investment which would makethe operation unprofitable.

The informa mining must be regarded as an anachronism from an enviromnental point of view, interms of both the natual and work environments. In spite of its old traditions, it cannot be accepted asa normal and satisfactory type of "industry". It pollutes the environment heavily and subjects theworker to a variety of health and security hazards. Nonetheless, it will only disappear

41

when the accessible mineralizations arc exhansted or through the development of altemativeoccpations. Until then. measures will havc to bc sought which can alleviate the worst aspects of thesituation without subsidizing or otherwise prolonging these unfortunate circumstances.

6. Alluvial gold mining

Alluvial gold mining is the exploltation of gold that occurs as dispersed grains in the loose overburdenor in poorly consolidated sediments. The gold originates from the bedrockc, from which it has beenliberated rough glacial or weatiering processes. During water tranportgold is deposited, due to itsweight, into concentrations of pockets or blankets of gold-bearing sfands, gravels or conglomerates.

The origin of the gold in most Bolivian alluvial deposits is thought to be the eroded upper pars of theCordillera Real. From there it has been transported to the norttern foothills of the Bolivian Andes,to the tributaries of the Amazon River and. through glacial transport, to the western slopes of theCordillera Real (the slopes toward the Altiplano).

One can distinguish the following types of deposits:

1. Older conglomerates (the Cangalli formation of Upper Miocene age). Gold in basal palaeo-channels or lower grade zones higher up in the formatios. The present locations of these de-posits are usually along the existing river valleys; howe,ver, tey may also occur up to hund-reds of meters above or below the present water course.

2. Taraces related to the present river systems.

3. Gravels in the present drainage systems.

4. Glacial deposits (till and glaciofluvial).

Gold has been exploited in Bolivia since pre-Columbian times. It is estimated that from the arrival ofthe Spaniards up through 1934, more than 300 tonnes of gold were produced, neady all of it fromalluvial deposits (Mathews 1988). Presently, intensive exploitation of gold om alluvial depositsoccurs in two main areas within the Amazon basin. namely 1) along the Tipuami and adjoining riversdraining the Eastem Cordillera and 2) along the Madera and Madre de Dios rivers close to the frotierwith Brazil in the nonthmstemost part of Bolivia (fig. 4:2).

lhe total gold production from these areas is unknown because a major part of t is illegally taken outof the country. A Congressional commission esEimated it to be worth US$ 400 million in 1989(Gustavson 1992). this to be compared with the official production of US$ 43 million (including hardrock gold from the Altiplano).

The method of exploitation depends on the nature of the deposit (see part 4. chapter EII.F, below). Thesize of operations varies from large scale dredging to individual panning or exploration of undergroundgalleries. Many of the operations are carried out by cooperatives, organized in a similar manner asdescribed above. A majority of the workers are the so called "voluntanos". who are only very infor-mally linked to the operations and work for a "patron" in return for the riiht to excavate for

42

their own gain during a number of hours per week. The large dredges active in the northcastern borderarea are usually owned and managed from the Brazilian side.

A particular environmental concern in the gold workings is the general use of mercury for the amal-gamation of the concenhatcs, mercury which is then heated off into the atmospherc for the recupera-tion of gold and in this way eaters soils and watcrs. Other serious consequeaces include the hcavyeffect on the landscape by dredging, diversions of rivers etc. These areas of alluvial mining are to agreat extent outside public control and largely lack infxastructure. Hcalth service is rudimentary andserious accdents are very common. By and large, environmental concerm and workers' hcalth andsafety are unknown conceptions.

Fig. 4:2 Map of main aeas of alluvial gold mining in Bolivia. Source: GEOBOL

43

IL POLICY AND LEGAL FRAMEWORK

A. Economicllegal reform and the mining sector

Within the mining sector. thc New Economic Policy of 1985 implies that the governmcn; shouldsearch for conditions and mechanisms to attract pnvake nsk capital, as the statc mining is not in asituation to make major investments. The strategy comprises the following main aims:

o Avoid the collapse of the traditional mining industry through private investors, capable ofproviding capital, modern technology and management competence.

* CGencrate a process of expansion and strengthening of the sector in accordance with the minc-ral pntential of the country.

* Eliminate government interventionism and protectionism.

* Establish appropriate lines of credits.

These principles were established in legal form with the modification of thi. Mining Code in 1991.(Law No. 1297, C6digo de Minerfa). This new law establishes clear rules regarding mining rights andprocedures for their allocation, as well as the tax provisions in association with the exploitation of adenosit Thus. all taxes on production and exportation have been eliminated and replaced with a gene-ral tax on net profits of 30%. and a complementary tax (guaranteed amount) of 2.5% on net salesvalue. The latter is paid only when thi profit tax is lower than the complementary tax, and then re-places the former. These rules are valid for all new companis formed after October 1992 and willsuccessively replace the old system based on royalties.

According to particular laws aimed at promoting investment, the mining sector is favored by a shortdepreciation time for investments in machinery (5 years) and, In addition to this, the possibility todeduct investments against profits. These possibilities include investment for the improvement of theenvironment Even if these incentives are primarily economic in claacter, they should also help inimproving the environmental situation, parly as investments addressed directly towards environmentalimprovements, partly as process and other improvements which indirectly give advancements alsofrom an environmental point of viow.

B. Mining and environment

The very few enviromnental provisions within the new Mining Code concern the use of water; thereare no specific mechanisms for implementing the ones concerning environmental quality and possibleharm. Article 85 assigns the right of use of water within the concession to the title holder, but obligeshim to return it to the original water source in the same condition as when it was taken. Article 87calls for indemnization to those affected if wa:cr is rendered useless for human, animal or agriculturuse. Although it is implicit, no mention is made of water tratment to prevent damage. Article 91states that the concessionaire has to get a water concession from the Superintendency of Mining. Thisassignment of control to the Superintendency concerning water rights could cause conflict with otherauthorities within this field.

44

A comparison of relevant water quality standards undcr Bolivia's Regulauon for Disposal of IndustialWaste into Bodies of Watcr (see Part 3. chapter VI.B.) with roughly corresponding standards fromother countries, appears below in Part 4. chapter ILE on environmental pollution.

C. Responsible government Institutions

[n general, all mining activities are under the supervision of the Ministry of Mines and Metallurgy(MMM). However, as summarized below. some important functions are handled by the Superinten-dency of Mines in the judicial branch of govcrnment. Also, there are pending changes In the organiza-tion of MM that may affect the assignment of cnvironmental responsibilities.

The allocation of exploration or exploitation rights is the responsibility of the national Superintendrencyof Mines and conresponding departmental units that exist in most of the departments of Bolivia. TheSuperintendency of Mines serves under the National Court of Mining, which in turn serves under IheNational Supreme Court of Justice.

The Superintendency has at Its disposal for field investigations, the Technical Service of Mining, aunit under the MMM, with regional offices in the main mining departments. A decentralized unit forthe administration of mining rights records. the National Service of Mining Cadastre (SENCAM), wasrecently established within MMM. The Technical Service of Mining will be lransferred to SENCAM.In accordance with the stipulations in the Environmental Law, a Direction of Environment is plannedto be established within the MMM. To a large extent, this new Direction of Environment may have torely on expertise outside of the MMM. MMM plans to begin developing environmental mining regula-tions in 1993, possibly with assistance from the U.N. Development Programme.

iL ENVIRONMENTAL CONCERNS

A. General aspects

Mining opeations, as defined for the purpose of this reporL basically include a) the exploitation ofores in underground or open pit min, b) the treatment of the ore to produce metal concentrates' (basemetals etc.) or metal buDions (gold and silver) and c) the discarding of waste products. The exacionof gold from alluvial deposits differs in sevewal important respects from traditional hard rock miningand therfore is covered in a seoarate section. Mining activities generally have a strong impact on theenvironment Effects vary deperding on the basic nature of the exploitation as well as the proceduresand protective measures employed. The following main environmental impacts can be identified, al ofwhich exist in Bolivia:

'Primary smelters are included within this part of the EA report, rather tan with the follow-ing Chn;.- - on industry, because the Government of Bolivia classifies primary smelters as part ofthe a1 ig :ctor-

45

* bThe consumption of scarce or depictable natural resources- Use of land- Removal of ores and minerals- Use of wat (surface watcr, ground water or fossil water)

* Transformation of the landscape- Open pit exploitation- Tailing dans- Waste rock disposal- Waste piles from heap leaching- Dredging activities

* Wastewater cffluents- Mine water- Process water- Tailings in process water suspension- Lcachates from old waste dumps and other sources

* Solid waste- Mine waste rock- Tailings from concentation operations

* Dust and gases* Occupational health aspects (see chapter IV.)

The mining sector is esdtmated to employ 60,000 to 80,000 people, about 15% of them in industrialopeations and 85% in semi-mechanized or artisanal activities. Working conditions within the in-dustnial sector range from good to poor, with the larger private companies performing besL Conditionsin state mines are deteriorating due to deficient management and lackang resources. Investigations tenyears ago showed, for example, that the average rate of silicosis among the workers in COMIBOLmines was an alarming 11%; there is every rcason to believe that this serious situation persists. Activi-ties within the work-intensive small scale and artisanal sectors are chadterzed by and hazardoushealth and safety conditions and a general lack of formal employment rights or social insurance.

The mining industry consumes approximately 315 milion m3 of water each year. This is amounts toabout 2% of the total water resources available in the Altiplano. where the great majority of the minesare situated. Even though this may seem a modest percentage, much competition regarding scarcewater resources occurs in many mining areas. The reirctation of watr in the processing plantsaverages only 10-20%.

Effluents from mining operations cause widespread contamination of natural soils and waters. TheStudy Team analyzed mine waters, brought to the surface through pumping or natural flow, at tendifferent mines. In all cases, these samples exhibited high contents of one or several heavy metals(e g., copper. cadmium, arsenic, lead and zinc), values which were usually 10-100 times higher thanthe typical standards used for mining effluents in industrialized countries. Ihe aame is true for processwaters from beneficiation plants, sampled and analyzed at about 20 different sites. Such waters oftencontain exemely high contents of heavy metals, as well as process chemicals such as xanthates andcyanide. The fequent lack of proper tailings damr, or deficiencies in their management, results in 30-50% of all waste waters with their contaminations being disch2rged to nature. Another major problemsis "acid rock drainage." which is caused by oxidation of sulfides in tailings and waste rock, and thesubsequent formation of acid, metal-rich solutions through leaching by rain water. All these sources ofpollution pose major potential threats to flora and fauna. Ihey also affect man more directly by redu-

46

dcg thc quality of water for drinkdng, agricultural and recrcation, and causing corrosion of steel andconcrete structures. such as water pipes.

The present annual production of solid wastc from industrial mining is approximately 5 million tonnes,of which about one half Is discharged to tailings dams of satisfactoy construction and management.The remaining Industrial min'ng operations will have to be equipped with such facilities at an estirna-ted cost of USS 6.5 millionL The reclamAion of old tailings, the latter estimated to about 104 milliontonnes, implies a cost of USS 725 million. Ihese estimates do not include solid waste carreatly beingmanaged by the mine owners (certain private mining companies), or waste originating from small scalcor antisanal operations.

The spread of meury to nature is a major conoen associated with alluvial gold operations in certainparts of the Amazon basin. It is difficult to quantify mercury contamination hecause of the uncon-trolled exploitation and the uncertainties about the extent of activities and rate of gold pmduction.However, it seems likely that annualy at least 25-50 tonnes of mercury are discharged to nature, andperhaps more. It has been shown that fish from the gold mining areas contain anomalous valucs ofmercury and ihere are preliminary indications of poisoning within the population. Another serious.though unquantified environmental impact of alluvial mining is degradation of the land, patticularlyfrom dr. dging opertions.

The long history of contamination through mining in Bolivia is exemplified by the occurrences ofmercury from Colonial times in sediments in the Paria river close to Obrajes (Departamento de Omuro).Merwcry was used at that time in a process for the extraction of silver. In the Paria river a number ofpersons are now collecting, for comm ization. the merLury accumulations, which appear in certainlayers of the river sediments. The present-day widespread use of mercury for the exuaction of gold byanalgamation is dealt with in chapter mLF.

Dust from mine operations and the emission of poisonous gases from smelters, are other factors affect-ing the environment as well as the human health.

In summary. Bolivian mining has caused and continues to cause a major negative impact on the na-tural as well as the human enviromnment It is evident that aside from urban growth and related conta-mination from waste and sewage, niining is the single most serious environmental problem in thecountry. This is party through its direct effects, and parly through its social implications.

More environmental concerns abort Bolivian mining have arisen during recent years. This is partly inconnection with the new environmental law and the estblishment of SENMA. and partly thoughother, often foreign, initiatives. *hus the first demonstration of proper cleaning of process water from amineral beneficiation mill has recently been initiated at the Bolivar mine. thugh a pilot plant con-structed with foreign aid.

B. Restructuring of the mining sector and its environmental consequences

Environmental aspects have never been very important in Bolivian mining. However, the main compa-nies, before 1952 as well as later within COMIBOL, usually collected their tailings in reasonably wellkept heaps or ponds. in order to preserve the material for possible later re-treatment and for the preser-vafion of water resources Even within the area of occupational health and safety, significant improve-

47

ments (although from a very low level) wcre made within COMIBOL before 1985. The trends inBolivian mining during recent years. as scen from an cuvironmental point of vicw, can be summarizedas follows:

- Ihe change from tin mining to the exploitation of lead/zinc/silver has meant a change from thedominant, wlatively clean, mclhods of gravity concentation to an increased use of processreagents such as xanthates, cyanide, etc.

- The discovery of a new major low grade gold deposit near Onrro has meant the introduction forthe fist time In Bolivia of a large-scale open pit operation (the Inti Raymi mine) and the leachingof the gold In heaps and tanks by use of cyanide solutions. In other places. heap leaching withcyanide solutions is employed for the extraction of silver fron old waste material (two operationsin Potosi).

- The present unsatisfactory economic oerformance of many mines has caused a decease in theability and deternination of manageir _nt to control effluent and waste disposal. For example,COMIBOL has recently stopped pumping the tailings at Its Santa Fe mine to the tailings pond.Instead, it lets the waste go directly to the nearby river, in order to decrease pumping costs.

- The recent surge of innumerable new small scale to artisanal operations, (the phenomenonhaving, nonetheless, a very old tradition) has given rise to serious problems, mainly of a socialcharacter but also affecting the environmenL These activities are essentially outside any public orother control, with the conseqrience that most procedures regarding health and safety are ignoredand that no anention is paid to pollution of the eavironment.

- Mines being closed often means less pollution from mine wa and tailings. However, it mayalso signify the cease of attention to taUings ponds (if existing) and the initiation of a more dis-orderly operation by "cooperafivistas". Cosed opeations are usually left without any type ofclean-up or land reclamation. Acid drainage is occurring In a majority of these places.

- A positive development is the arrival in Bolivia of some fordgn mining companies with a highdegree of knowledge and standards in technical and environmental questions. Thus, a few goodexamples of enviromaental management exist, in new operations as well as in mitigating old poorpractices. However, it should be mentioned that other foreign Investors with less financial possi-bilities and litte prestige to lose, also are entering the Bolivian mining scene, with a iestrictedinterest in environmental questions.

C. Use of land and natural resources

Mine exploitation is different from many other industrial activities in that it is natumally restncted tothe location of the ore deposiL Ihe only choice is which method of exploitation wiU be employed (e.g.underground or open pit mining) and even tat freedom is generaly very restncted for economicreasons. The processing of the ore is also normaly made as close to the mine as possible in order toavoid transporting large tonnages. Exceptions may occur when a process&ng plant is serving two ormore mines or when the lack of water or otler necessary amenities makes anoter locaton moxesuitable. A low grade (in the sense of low value) ore cannot usually be economically transported forlong distances whIle a high grade ore (like some very selectively mined and hand-sorted ores from

48

small Bolivian deposits) may be taken 150-250 km for their processing. Waste rock and tailings arefor te same economic reasons usually deposited dose to the mine and/or proccss plantL

Most of the Bollvian mines are located in high altitude mountainous terrain where there has boee littlealtcrnative use of land and therefore litle direct conflict with other activities like forestry or agri-culture. However. as mining in many areas is several hundred years old, often exploiting one and thesame deposit, urban areas have in many cases developed around the mining operations, thus causingconflicts with any e;:tension of the industnal activities. The resulting disorderly mixture of industrialand civil life In cities such as Potosf and Omro has a seriously negative effect on the quality of life(see chapter VI).

Whilc land is an abundant resource in the Bolivian mountains, water is correspondingly scarce. Rainand melt water are usually collected in dams at high elevations for use by industry as well as house-holds, and sometimes even for irrigation purposes. Conflicts among these different water consumersare very common.

D. Land degradation

Traditionally, Bolivian mining has occurred in underground mines with entrances by mountainsidegalleries supplemented by vertical shafts. Only recenty has large scale open pit mining arrived to thecountry, with the development of the Inti Raymi gold operationL Another possible extensive surfaceexploitation is the extraction of salt for lithium in the Uyuni salt desert in southwestem Bolivia. Thisdevelopment towards surface exploitations is obviously a trend which will be strengthened, as hasbeen the case in most other mining countries.

Regarding solid waste disposal, the tradition in Bolivia has been to let out the tailings downstream intoprimitive ponds or directly into a river. Only recently have a couple of responsible mining companiesconstructed proper dams for their waste and introduced plans for event reclamation of their damsand tailing piles. Wast piles from the heap leaching with cyamde for gold and silver is a by-productof new extraction methods introduced in Bolivia during the last five years. These opeations seems tobe relatively well managed, but will have to be controlled In an adequate manner for many years andultimately be reclaimed.

Large scale dredging of river beds for tin (regarding gold, see chapter IILF ) has occurred in theAluiplano and the Potosf areas but is now discontinued due to lack of profitability. Ihe negative conse-quences in a number of places have been the reshaping of valley bottoms and the destruction of somefarming land.

E Environmental pollution

1. Wastewater effluents

a. Mine water. The predominant Bolivian ore deposit is of a polymetallic sulfidic charater. The con-tent of iron sulfide, mainly in the form of pyrite or pyirhotite, is usually high or very high. Theweathering of these minerals gives rise to higthly corrosive waters with acidities usually around pH 3but occasionally as low as pH 1.5 (pH 7 is neutral). The frequently high contents in the ore of such

49

metals as zinc, lead, copper, arsenic, cadmium, silver. etc. are leached by the acid water and broughtto the surface - at active mines through pumping and at many abandoned mines by natural flow. Suchwater, enriched in heavy metals, is oftcn discharged directly to any nearby river. At some mines themine water is used in the concentration piocess. directy or after neutralization and treatment, depend-ing on the process used. From an eovironmental point of view, such a procedure is highly desirable,even if In Bolivia tis usualy occurs only when other sources of water are lacking.

Analyses of water fiom a selected number of mines are presented In Table 4:2. As can be seen, mostmines produce water with a low pH and with a very high content of heavy metals. However. theactual composition of the waters varies appreciably among the different mines. The generally highmineral contents, particularly of cadmium, copper and zinc are of obvious major concem.

Table 4:2. Analytical results of mine waters at outlets. Sample locations: E32 Siglo XX mine. E33Bolivar mine. E42 Unificada mine. E53 Huari mine. E96 Colquiri mine. E103 Japo mine(inactive). E106 Mathilde mine (inactive). All values, except pH and flow, given in mg/l.Laboratory: E1MM, Oniro. December 1992. For further details see Appendix IV.4 .

Sigbo XX Bdlivar U|milcmda Huati Colqu i| Japo Maihde

Snmple No. E32 B33 E42 E53 E6 E103 E106

pH 2.1 2.9 23 2.9 2.6 3.0 7.8

low m'hS 0.03 0.05 u.025 0.01 O 0 0.025 0.025

Suspended solids 452. 210. 3529. 99. 729. 172.

Di;olved solids 5931. 1987. 44690. 4660. 20190. 2493. 720.

Ag A005 ! 002 0.03 0.01 OD2 0.00 0.OO

As 0.00 0.04 035 0.0 0.00 1.03 0.00

Cd 9.0 1.1 14. 1.06 53S0 10.4 0.02

or | 0.04 0.00 0.20 004 0.06 O00 0.00

Co 5.5 0.14 2 0.03 5.75 838 0Q00

Fe 600. 129. 5294. 2020. 1882. 458 1.2

Hg 0.000 0.000 0.000 .000 0.000 0.001 O.OO

Mn 15.8 4.33 24.8 22.6 361. 2.15 14.5

Ni 1.25 0.08 1.30 0.40 2.06 0.28 0.09

Po 0.10 O0s 0.18 0.10 0.23 0.10 0.00

Sb 0.11 0.26 0.85 0.00 0.15 0.12 0.55

Zn 224. 356. 2942. 461. 1330. 30.0 24.0

SO. 3311. 7504. 2629. 7922. !48.%. 400.

50

b. Poess water. Process water from the concentaton plants employing notation contains three maincategories of contamination: 1) heavy metals in solution; 2) suspended slime with heavy metals; and 3)flotation reagents and other chemicals added in the process. The usually high pH of 10-12 used in thefinal part of the flotation process rcstricts the solubility of metals and thus limits their abundance asdissolved ions by precipitation. In this way, metals are removed into the solid waste or into the sus-pended slime, from where they may, subsequently, be leached out through natural processes. Theprocess water is discharged from the plant with the solid waste as a slurry. Sometimes this sluny isdischarged to a nearby river. but more commonly it Is fed Into some type of tailings dam.

Table 4:3. Analytical results of mill and tailings pond effluents. Sample locations: E12 Milluni mine(inactive), sample downstream tailings pond. E36 Tiwanacu Poopo plant, overflow fromtailings pond. 144 Porco mine, overflow tmm tailings pond. E55 Kumurana-Jukucha plant,effluent from tin plant (process water from lake contaminated by mining and acid rockdrainage). E62 AndaLalha mine, overflow from tailings pond. E94 Colquin mine, mixedwater 2 km downstream tailings pond. ElOI Sana Fe mine, process water from plant. Allvalues, except pH and flow, given in mg/I. Laboratory: 11MM. Oniro. December 1992.

Millni |a Pvoop pCr | Kauama Andacaba Coblui Smz Fe

S3ue No. E12 E36 E4 ES5 E62 E94 EIOI

pH 2.1 4.9 11.9 4.2 9.0 33 3.1

Flow u,/A 0.1 0.04 0.075 0.02 0.02s o03 05

Suapcnded oibds 143. 650. 10. 16460. 12. 316. 750.

Diasved goldida 909. 9865. 1545. 949. 616. 7101. 2004.

AS 0|00 06 0.01 0L07 0.00 0.04 0.03

.00 0.41 0.00 4.60 0.00 020 0.00

Cd 0.11 0.50 0.01 2.06 0.01 0.85 1.40

or 0.000 0.00 0.00 020 0.00 0.05 0.06

cm 0.460 0.45 1.09 143 1.63 4D08 2.53

Fe 96.0 28.2 0.66 83.1 1.12 536. 376.

Hg 0.000 0.000 O.0 0.003 0.000 0.000 0.000

Mn 10.3 2.73 0.75 49.2 0.11 150. 4.15

Ni 0.11 0.15 0.05 0.55 0.04 1.08 0.22

Po 008 2.91 3.3 60.4 0.25 2.03 8.20

Sb G.13 0.23 .25 4A5 0.30 0.20 043

Zia 33.0 50.4 1.16 313. 1.03 424. 106.

SO. 553. 1 38. 449. 476. 279. 4203. 1203.

51

After the setling of suspended material, water is either disdiarged to nature or recycled for usc in theplant lhe quality of the over-flow water leaving the dams is only seldom controlled. As exemplifiedin Table 4:3. samples E44 and E62, elevated contents of certain elements may occur in spite of a highpH. In agricultural aeas farmes may complain if the content of suspended solids is too high (i.e.readily visible) while high contents of dissolved metals or chemicals tend to pass unnoticed. In caseswhen the tailings pond water is not neutralized, or when acid process waler is discharged directy intonature (as exemplified in Table 4:3 by samples E36 and EIOI, respectively) appreciable quantities ofheavy metals are released

Flotation reagents include sodium cyanide, copper sulphate, zinc sulphate, xanthates, frotfers, etc. In awell managed plant, most of these chemicals are absorbed to mineral grains in the process and so areno longer in free solution. However, when used in excess, they will remain in solution and go with thetailings. The use of reagents in the heneficiation or leaching processes at some Bolivian operations ispresented in Tlable 4:4- A particular concem is the use of cyanide which, if not properly handled, canbe acutely toxic to man or other living creatures, such as fish. Xanthates are another worry because oftheir toxicity to the aquatic flora and fauna. However, both cyanide and xanthates are normally readilybroken down (by oxidation and hydrolysi;, respectively) if the discharge wat is kept for a sufficient-ly long period in a tailings pond.

Table 4:4. Production and process data for a number of Bolivian beneficiation plants.

COmO I Cavi Eldivar Pat Velwde Do Andacabal_____ ___ _ _) Digp

Capacty IAd 100 400 40 1200 300 g0 1go

POdUd! Ag Ss Zn/Ag ZnAg Zn/Ag Zn/Ag Z7/Ag_b/As Pb/Ag Pb/Ag lb/Ag

Proessm Hep Iac Gaviq FI L dIft FIL diet FIaL dkec HaL duff. Flo. dUff.

Reants: I I

Xaatbais gA 394 20D 90 65 50

QaSO4 TA 660 400 480 350 400

ZnSO4 BA 194 75 1SO 500

FROdsSgh 90 so 40 60 230

Limeg 9350 10000 16000 300 3000

Cyanide gA 500 114 75 100 40

ProzspH 13 7 5/11 12 12 7

Watr m3Ao 0.3 7.0 6.0 3.0 6.0 3.0 5.3

Watcr sowce Waer dam Spiap Mime Dam/mine Dams wen MiDe

Waste aer outlet RcircuL To river RecircDamN Dam RecirmL NWoverfow overflow overflow

Solid was Hes to be Dm Dam Dam Damcovered

52

Mhis is far from always the case at Bolivian mdnes and cven less so in small scale and artisanal opera-tions. Only the more recently established cyanide leaching operations (for gold and silver) have ade-quale facilities for the control of cyanide solutions.

Poper facilities for the treatment of process effluents do not occur at any flotation mill operation inBolivia. However, the addition of lime to the overflow water from tailings dams is sometimes prac-ticed. this in order to create a high pH and taxeby precipitate heavy metals. The only really ambitiousactivity within this field is a small demonstration plant built, with foreign support at the Bolivar mine.Here effluent water is separated from solids in settling tanks and then mun through vacuum filters.

c. Acid rock drainage. Acid rock drainage (ARD). or the synonymous Acid mine dminage (AMD), arethe terms used for acid, metal-bearing, natural waters, fmnned by the oxidation of iron sulfide mincralsto sulfuric acid and subsequent leaching of rocks and mlneralizations. It includes the formation of acidwaters in mines (as described above) but has a much wider implication. lTus. the ARD process mayaffect

- sulfidic ores in mines- sulfidic mineralizations (veins, impregnations etc.) in outcropping bedrock- sulfide-bearing waste rock stockpiles- sulfide-beazing tailings deposits

Obviously this is a process which can continue for many years after exploitation has ceased. Duiingthe time of operation, mine water will normally be trated (or used in the process), tailings will bekept wet (and thereby practically non-oxidizing) and waste rock is possibly used as refill. A verynegative consequence of the unfortuatle habit of letting tailings out directly into streams and rivers, isthe spread of this material over large areas with possibilities for subsequent and future formation ofARD.

Moreover, after closure of a mine, mine water may still be flowing to the surface and into nature, andtailings and waste rock may be open to oxidation/leaching. This latter situation frequently occurs inBolivia; many abandoned mining fields are still producing acid waters and resultant metal contamina-tions. In certain areas. for example along the slopes of Cerro Rico in Potosi, leaching of the old wasterock has gone so far that pynte and pyrihote have been totally consumed and no acid is presentlyproduced (a positive effect of this is that this complete oxidation has made the material very amenableto the industrial leaching of remaining silver).

d. _m urXnment regulatio rejgarding water QuaUly. The discharge of mine waters and process waterinto nature may be harmful to man and. even more so, to the aquatic flora and fauna As it is usuallyimpractical or cost-prohibitive to totally avoid contamination, much thought worldwide has gone intodefining rcceptable limits. Different principles are in use, the simplest and most stmaightfowward beingbased on maximum contents for the different dissolved elements in the discharge. Such standards,particularly specified for mining operations, have been elaborated in for example the USA and Canada.In other countries the guiding ptinciple has come to be the assimilative capacity of the receivingecosystem. In for example Sweden and Fiuand there exist no general discharge norms but an indi-vidual examination of each opeation or new project based on the local ecological situation and thechoice of best available and economically viable technique. Japanese discharge stndards are drawnfrom drinking water standards, presuming an average tenfold dilution in the receiving waters. A fewexamples of standard discharge values concerning heavy metals are given in Table 4:5. Regardless of

53

which set of stanrds or recommenadations is chosen for comparison, discharges from many Bolivianmines are very high in metals and Mhere is all reason for concern. Measures will have to be taken and.for this end, norms will have to be established (any norms will have to take into account the fact thatan unusually high concetration of metals occur naturally, and so adopting norms fom counties thatdo not have such high concentuaions occuning naturally would produce excessively strict standardsfor Bolivia).

However, it may be inapprpriate to focus too much of attention on the standards as suchL Ihe waysof complying with these standards are eqcally important for a good result. Ihe choice of suitabletechnology and correct process procedures are decisive In these efforts. The scope is thus an environ-mentally sound corporate planning, including economizing with scarce rasources, minimizing (oravolding) discharges, the tratment of waste according to best Inown practice and a planning forultimate rehabilitation already at the sWt of a projecL Such a technological approach may also bemore efficient in promoting general eavironmental awareness than the sole promulgation of somewhatabstract standards. With the intention of stimulating such a tactic, an outline for a Code of Pracice forMining Operations is presented in Appendix IV.12, with the hope that it can serve as a base for themining community as wel as the state authorities in elaborating the more detailed directions.

Table 4:5. Examples of standard valuer for metals in mining effluents as used in some differentcountries. Sweden and Finland establish standards for each individual source; presentedvalues are examples from base metal mines. Bolivian values represent industrial dischargelimits according to "Reglamento sobre lanzamiento de desechos industriales en cuerpos deagua", niles published by the Ministenio de Urbanismo y Vivienda. Al values except pHgiven in mg/l.

US-EPA US-EPA Canada Canda Sweden F!inlad Jpn Bolivia

Daiy Monthly GTb MOmbY 3 mams_____ ____ _____ ____ ____sam pl _ _ __ _

pH 6.0-9.0 6.0-9.0 >6.0 T 6.0 >6.5 6.0-9.5 5.-36 4.5-10.0

Supended solids 30. 20. 50. 25. 40. 20D. 1.0

As 1.0 0.5 0.5 1.0

Cd 0.0 0.0 0.01 0.1 I

Cr 0.5 5.0

Cu 0.30 0.15 0.6 0.3 0.1 0.3 3. 5.0

Fe 33 10. 10.0

Kg 0.00 0.001 0.005 0.05

Mn 05 10. 10.0

Ni 1.0 05 1.

Pb 0.60 0.30 0.4 0.2 0.1 . 20

Sb

Zn 1.50 0.75 1.0 0.5 0.1 1.0 5. 50.0

SOd. II seoo.

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2. Solid waste

aL TiIsnPs o.autiu . As indicated in the previous section, most of the now active concentation plantsonly produce one tailing, which is discharged as a slurty. Only at a few mines, like the Huanuni tinmine, two different wastes are geneated, one coarse sand which is ransported dry to a special moun-tain-side tip and another fine slime whidch goes with the process water to the river. In previous times ahigher proportion of coarse waste material was produced in Bolivia, particularly in connecion with theexploitation for tinL A major deposit of this lat kind is the remaining coase waste fom previous tinmining at the Siglo XX mine (Catavi), which holds more han 25 million tonnes of material. Similarlarge quantities cover the slopes of Cero Rico AI Potosf, this mateial presently serving as the sourceof silver in heap leaching operations.

Deposits of fine tailings occur in large quantities in present and previous mining amas. In fact,in many areas, the large volumes of old waste represent a dominating feature in the landscape. Inaddition, smaller heaps am often dotting the mountain-sides. Reliable figures regarding tonnages andmetal contents are available for many of the deposits as they represent reserves which could in manycases be profitably treated for their remaining metals. The calculated reseves of this kind belonging toCOMIEBOL, totally about 86 million tonnes, are detailed in Table 4:6. A rough estimate regarding thetotal existing quantiy of mining waste in the country would be aound 130-160 million tonnes. Ihemain environmental concern regarding these deposits include 1) the conditions during an eventual

Table 4:6. COMIBOL reserves of metal-bearing waste malerial for possible re-treatmen

M4ining CnIer Coarse wagze F& ineUailn so Zn Pb AWO00 km WOU)= s s s gA

Hurnuni j 22 2375 0.42.036

S_ Jose 1242 1897 0.34 0.47 89-152

Bolivar 330 7 0.76 3.97 092 75

JapO 201 425 052-042 _

colqu|ii 12016 051 3.74

Cneoles 137 2065 0.31

San Viu ne 155 28 1.69 203

T e;s. 183 720 1.0128 120-o-3S 95-56

An 6 4355 0.30 0.38 0.47 73

Cwolqukpe 193 392 0.62-0.23

TUs 250 193 0.44-024

UniICRa4 6550 5189 0.27-0.79 196-75

CaIsyi 25897 19670 020.44

TOTAL 35966 49832

55

reprocessing, and 2) the possiblc leadcing by rain water with formation of add waters wimn high con-tents of heavy metals (acid rock drainage as discussed above). This latter phenomenon depends basi-cally on the present content in the different deposits of iron sulfide minerals, information which usual-ly Is not available. However, it can be presumed that this content in many cases is high.

With a few good exceptions. the management of effluents and tailings at Bolivian mines is very un-controlled and indifferenL However, generally speaking, the bigger and more tehnically and economi-cally solid the company Is, the betler the managemenL Small operations and artisanal activities areusually devoid of any sort of control. The present production of solid waste from mining in Bolivia Isestimated to about 5 million tonnes, a comparatively modest figure. With the possible introdaction inthe future of extensive large scale mining, this figure could Increase very substantially. For examplethe Intl Raymi operation is scheduled to increase its waste production from 1.4 million tonnes to about5 million tonnes per year from 1994.

b. Cast of tailing-s dams. As a basis for cost evaluations, we have studied a number of recently builttailings dams as well as certain companies' cost estimates for new dams. The costs vary substantially,from about USS lSO/annual ton of mine capacity for the largest operailns to about US$ 4 - 5 for thesmaller and more expensive installations. We have anived at an avcrage of US$ 2.60 which alsoIncludes some improvement of the sewage systems in the associated mining towns (see AppendixIV.5). Using this figure and presuming an annual tailings production of 2.5 million tonnes, result in atotal cost for the construction of tailings dams ot USS 6.5 million. The dams are usually built for aperiod of storage of 10 years. Tlhe cost figures do not include possible requirements within the smalscale and cooperative sectors. Nor do they include investments by those companies which are alreadycarrying out or planning such remediation measures. Furthermore, it is presumed that all investmentsin new mining ventures will include adequate facilities for waste disposal.

c. CostL lamntoi fls It is only during the last dcxades at mining cnmpanies have startedto reclaim old tailings dams and mine dumps. For this reason, the experience is limited. One thing isclear, however. such projects are expensive. To reclaim an old tailings dam or a mine dump usuallycosts 5 to 10 times the cost of building a tailings d; m, calculated per ton of tailings material containedin the dam or dump. The usual concept is to cover the dam or dump so that air cannot reach thesulfide minerals, whereby oxidation is prvented and tke production of sulfuric acid and heavy metalleaching is avoided. Tbis cover can either be made by creating a lake over the dam or to cover thedam or dump by a layer of material that is impermeable for oxygen as well as water. The method ofcovering by wat, i.e. cleating a lake, is usually much cheaper than to cover with solid material, thedifference being 5 to 10 times. However. ceating lakes iE for natural reasons not always possible.particularly in a dry climate as that of the Bolivian Altiplano.

An important aspect, from a cost point of view. is whether it is possible or not to economically re-cover minerals from the old tailings dams or dumps Many of these old dams and dumps containappreciable amounts of metals that can be recovered by today's more sophisticated methods. In thisway the cost of relasmation can be substantially reduced, or carried out with a profiL 'thus COM3BOLhas made agreements with some foreign companies for the reprocessing of old tailings. However, thisrequires at sufficiently strict environmental requirements are incorporated into the lease or jointventure contct Ibis has not been the case up to now, but steps have recently been taken to guaran-tee such precautions.

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In our cstimate above wc have not discounted the possibility of reprocessing the wastc for its remain-ing mead content. With the present low metal pnces, the economy of such operations are In mostcases questionable, a situation which will of course dhangc if the market improves. Our cost figumsam based on cost experiences fron Sweden and USA (see Appendix IV5). As presented iu Table 4:7,the reclamation of remaining major tailings dams and iine dumps would involve a cost of approxi-mately US$ 725 million. Is possible that some of these remediation objects wlll be attended towithin new joint vente operations or thrugh special reprocessing projects. However, a large pautwill still remain as the responsibility of ct present owner, i.e. primarily the Bolivian state.

Table 4:7. Cost estimate for reclamation of old tailings dams and mine dumps.

MINES TONNAGE COST TOTAL COSTmilion tonnes US$/t million US$

TAIL[NGS DAMS:

Comibol mines (continued operations, joint 53 050 26.5ventures, leasing to cooperatives)

Medium mig 10 050 5S.

SUBTOTAL 63 31.5

iMINE DUM PS:

Conubol mines (continued operations, joint 36 1.00 36.0ventures, leasing to cooperaivs)

Medium inn 5 1.00 5.0

SUBTOTAL 41 41.0

GRAND TOTAL 104 72.5

3. Dust and gases

In the dry climate of the Andes, abandoned waste dumps often give rise to the spread of waste ma-tenal through the activity of the frequently strong winds. Another source of dust is duing crushingand milling of ore in a dcy state, a procedure employed at a couple of heap leaching plants. If notcollected the fine dust may cause pil and inconvenience to the workers on site as wel as to thesutToundings. lhe hazardous effect .)f the dust depend on its chemical and mineralogical composition,particle size, concentration ox particles in the air, as well as the conditions and time of exposure. Ihus,the inhalation of fine crystalline silica (quartz) may cause silicosis. If ore particles reach the respiratorysystem they may dissolve whereby toxic elements, as for example lead, pass into the blood sbtam.Gas emissions are a problem mainly in connection with smelting (see the following chapter).

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4. Pollution related to pcimary smelts

Ihe non-mining industry of the Altiplano can be divided into two categores, namely process industryand maning industry. Apart from a large cement factory, located at Viacha not far from L Paz,the process Industry Is totally dominated by smelting facilities and in this way closely related to themining industry. Of the five sate-owned smelters only one, Vinto, is in regular operation. Thesesmelters are described briefly below. Due to the limited activity in most of these plants, the environ-mental problems are presenily reticed. However, should this change, problems would certainlyappecr due to the outdated tedhnology in the plants (with Vinto as an exception).

In addition to the five state smelters, there are a number of small private smeltcrs, most of them givingrise to serious environmental pmhlem.c. One is the Fundici6n Pero, located in the urban pr of Orjro,causing problems mainly through its emissions of gases containing SO2 and particulates witi arsenicand lead. It is now being dismantled and moved outside the city. but evidently without change oftechnology. Two other plants, situated in the outskirts of El Alto (Hormet and Bustos), are producinglead metal and trioxide of arsenic, respectively, with very antiquated methods. The work environmentis reported to be very deficient and gas emissions are causing problems to the neighbors (including aschool).

lhe five state-owned smelters are:

a. Vinto. Vinto is a major smelting complex for tin and antimony, located 7 kIm flom Oiro, and inoperation since 1971. The smelter is trating both high-grade (38%) and low-grade (20-25%) tin con-centrates in a process consisring of roasting, reduction, volailization, tbermal and electrolytic refining.The insaled annual capacity is about 30,000 tonnes of tin and 6,000 tonnes of antimony. The antimo-ny smelter is at present rented to a foreign company for the teatment of concentates from abroad.The previously very deficient environmental conditions are now being improved through Germansupport and an investment of US$ 53 milion over the time period 1992-1995. By means of theseimprovements (installation of a new baghouse filter in the roasting and an electaic precipitatr inthe volatization department), the emions of arsenic trioxide to the atmosphe will decrease toabout 20% of the contents in the concentate, from the previous level of 50-70%. co onding toabout 10.000 tomes/year. The rehabilitation program also involves the building of an arsenic (As203)plant to produce a saleable product, the installation of a new ventilation system with an electrstaticprecipitator, extension and upgrading of the wasewater treatment plant, and varous measues to pre-vent diffuse emissions of dust Through the measures implemented, the managers estimated that theemissions bad been reduced by 80%. The smelter is equipped with 3 stacks of 80 m heght and onesack of 45 m. No recovery of sulfur dioxide gas (SO2) exists, because there is no maket for sulfuricacid. Ihis means that the S02 and SO3 emissions are about 1,200 tonnes/year. However, the fuel doesnot contribute to thes emissions, after tile introduction, in 1992, of natiurl gas as fuel.

b. Katampa This major lead smelter outside Potosi was constructed in 1984 but has never opera-ted due to insufficent feed. The rated capacity is 24,000 tly of lead and 200 tly of silver. A techical-economic feasiiity sudy is presently carried out by a consultant with the purpose of possibly startingup operations. Ihe evaluation should consider the possible related envionmental consequences of anoperation there.

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c. La .alca. Tis plant, located about 15 km to te northeast of Potosi and constructed by a Sovietfirm has executed volatilization of tin from low grade concentraes. It was in opertion only for threeyears (1982-1984) and the prospects of its reopening seems to be meager. However, the plant will beoffered for a joint ventme by COMIBOL. A recent review by COMIBOL showed that the plant is ingood condition; it only requires overhauling the circuit for gases and eliminating arsenic. A dustsample taken by the Study Team fro the iteior of the stack supports this nced, since it showed veryhigh rnitents of arsenic.

d. Idamays. Tbis is a bismuth smelter, situated in the region of Tupiza, in southern Bolivia, with acapacity of 600 tly of bismuth metal. It started operations in 1972 but was closed in 1980 due to thefall in bismuth prices. A minor pilot activity for the production of copper sulphate has occurred during1991-1992.

e. IMQ. This small plant in Oruro is used for volatilization of low grade tin concentrates and lately,pilot research for the tramet of lead-antimony concenates from the San josg mine.

5. Groundwater caminaion

Of the mining areas, only Churo relies on ground water for supply of water to its urban area. hiswater is taken from wells at depths of 80-125 meters. The locations of the wells are at distances of 5-10 km towards the northeast from the city. The groundwater flow is towards the south and southwest.so the -watr is unlikely to be affctd by possible contamination from the city or from mining andsmelting activities to the south. However, more shallow, hand-made wells in the area of Vinto and inthe valley of Huanui, are said to contain water which is unsuitable for use due to contamination frommining activities.

Many of the mines are set in high mountains where the prospect of encounteing grundwater is small.Even in the center of Potosi, COMIBOL drilled holes to depths of more than 60 meters, withoutfindin water.

F. Special concerns related to alluvial gold mining

As described above, in Part 4, chapter I.C.6, alluvial deposits occur as horizontal blankets or pocketsin sedimentary formations. They usually range from S to 100 metes I width and hundreds of metersin length. with thickness varying from less than 1 meter up to about 2 meters.

1. Methods of exploitation

The size, form and location of a deposit largely determine the exploitation methods used, which mayinclude:

a- In river plains, worling the alluvium using bulldozers, backhos, dump trucks, shaking screensand sluice boxes. For example, in the major deposit of Tipuani Playa, covweng an area of 400 by3,000 meters, it is estimated that about 5 million 3 of ground have been worked in this way(Matthews 1988).

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b. Alluvium prese in river beds is_commonly exploittd through dredging. These operations canbe small scale from barges, with material being sucked from the bottom of the river through tubesdirected by divers. Indusial scale dredging has been carried to some extent in the Tipuani areabut mainly in the Madera River, which forms the frontier with Brazil. In this latter area, 165dredges, ali Brazi}an owned, were active in September 1992; this was only a fraction of thethousands of dredges that have been active in previous years (LDEMA 1992). Gold in the Ma-dera River occurs as accumulations in basal sediments at the 18 main rapids along a river stetchof 80 km. The semi-consolid sediments, occurring at depths down to 26 meters, are broken bya drill and sucked to a dredge for gravity treatment- The waste material is discharged in to thenver. The total movement of material during 15 years of erploimation has been in the onler ofmagnitude of 100-200 milion n3 .

c. River terraces. related to present rivers, are exDloited in the TiPuani area as well as allong theMadCra River (nowadays mainly on tie Brazilian side). The dry sediments are disintegrated by awater jet stream, the finer materials being moved as a slurry for treatment in sluice boxes for thecollection of a gold-beaing concentrate.

d. Gold in pal nhnnels of older sedimentary formations now exist as scatered erosion rem-nants above present river courses or as buried deposits covered by younger sedimens. Such depo-sits are comparatively restricted in size and access is usualy difficult However, the grade may bevery high, up tn one hundred imes or more the quality of the ores descibed above. Exploitationis usually tbrough shafts and galleries in a similar mannr to that employed in conventional un-derground mining. The installations are commonly very primitive and extremely unsafe for wor-kers. The ore is treated in simple sluice boxes and by panning. This type of deposit was ecten-sively worked in eadier times and is still an important source of gold in the foothills of the Cor-dillera Oriental.

e. Gold in glacih. deposits on the westen slope of the CordiBera Real has been worked intermit-tently for cenuies. Thus, the Lago Suches deposit, located at an elevation of 4,600 meters doseto the Peruvian border. has been exploited along a zone of about 5 KM. with an estimated totalmovement of materials of about 1.5 million in3 . In the beginning of this centtuy, a foreign com-pany worked the till by driving tnnels, blasting and then booming the loosened miateral downhillwhere it was washed in the sluices (Matthews 1988).

2- Environmental and health impacs

In contrast to hard rock ore deposits of vein type vwth their dominant vertical extensions, the alluvialdeposits usually cover appreciable areas and their exploitation involves moving large quantities ofsurface material. Ihis resulLts in changes in landform and the destruction of vegetation. Indirect impactsinclude constng roads, felling trees, and pollution from hunman settlements.

Ihe prduct of all the alluvial gold mining operations is a concentrate containing gold. other heavyminerals and gangue mineals. In order to separate the gold from the rest, the concentrate is invariablyteted with mercr,y t fom an amalgam. Mercury is then hed off into the atmosphere for recu-peation of the gold. Mh use of retorts to contain the mercury are very seldom used.

60

In the most important exploitation ar Ttpuani and suroundings, little is know about the impact ofthe gold mining activities. A recent study indicates possible effects on human beings (Interamericangroup for research in environmental epidemiology 1990). Ibis study investigated the health of peopleliving along polluted rivers in a number of L atin American countries. Ihe results unexpectely showedhigh trace metal contetMs (mercury in blood) in a group of children living in a 'Low risk" area inBolivia, the Runabaque village at the Beni River, about 150 km downstrem from TIpuani. These*esults may underine the potential risk of mercury poisoning in the area. They also seem to show thatrelative hazard of mercury contamination is higher han from otber types of heavy metal contamina-tion.

A thorough study of conditions along the Madera River was recently completed by a group of scien-tists working under the auspices of LEDEMA (LIDEMA 1992). The rcseachers concluded thatbetween 100 and 500 tonns of mercury have been discharged to the nver sinse the lae 1970s, andthaL most of ttis mercury has been adsorbed to fine solid particles in suspenon. Tley estimated thatin the prcess of recuperating gold, about 6 grams of mercury are emitted for every 1 gram of goldrecovered.

Analysis of fish gave mercury conten¢s that were on average 5-10 times higher than e values for fishin uncontaminated areas. Tiis accords with the findings of another recent study that carried out similarsurveys of the Madera River within Brazilian territory (Malm et al. 1990). Analysis of human hair andunne showed markedly higher values of mercury for men engaged in gold mining activities as com-pared with other people tested, but stll wnthout exceptionally high concentratons. One reason for thiscould be that the Bolivians living in this area rarely eat fish (in coDnrast to their Brazilian neighbors).

IV. OCCUPATIONAL EHEALTH AND SAFETY

A. General aspects

As nted above, in chapter ILF., the subject of wores' bealth and safety does not attract much amten-tion in Bolivia; the undsding nd knowledge about such questions among ordinary people arevery restricted the sector institutions are weak. and laws and regulations are often not known or res-pected. Naturaly enough, this situation also prevails witbin the nining sector. However, the actualconditions may vary remarkaly between different work places or companies. In general, the largercompanies mantain an appreciably better standard than the small scale operations.

1. Health and safety hazards

The accident rate in Bolivian mines and related faciities is very high; injuries caused by cnisbing arethe most common accidents. Ibe mining sector has far bettr managed repotng and statistcs regard-ing work accdents than otber industies. so compaisons vwth other industies ae difficulL

The rate of sillcosis among undergound miners has traditionally been very high. A number of studiesduring the 1970s and, with support of the WHO, durnng the penod of 1978-82, show an average rateof silicosis among underground workers of 11%, an extremely high figure. Values from different

61

mines vaned between 3.5 and 22 %, while the rate of silicotubereulosis varied between 1.4 and 4.6 %.The varintion between differen mines presumably depends on a combination of such ftors as: thecontent of silica in the rock; the minng method employed; the degree of efficiency of ventilation; andthe humidity of the mine. he investigated mines were aU COMIBOL mines. Certain measures weretaken but the present situaon is not well known. Ihe major prvate mines have inmoduced customaryinternational sndards for worker health and safety.

Different toxic chemicals are fquently used in the ore concention processcn. These include cya-nide, xanffes, acids etc In modem plants, the handling of these substances do not create muchproblemL However, specially in the small plants, chemicals are often teated with less care, thus repre-senting a health risk In tbe mines, fumes from explosives are a main concern. Health risks may occurparticularly in mines with deficient ventilation (for example in the cooperative mines).

The potential poisoning threat posed by the use of mercury in alluvial gold mining, is treated in thepreceding section (Part 4, chapter HLF).

Noise is a problem in the mining industry as we'J as in most other Bolivian industries. Mitigation mayoften be costly, whereas the use of hearing protection is mainly a matter of organizaion and workers'discipline

Most jobs in an average Bolivian mine are physically rying and wearing on the body. Difficult workpostures and intricate work movements create risks for over-load and accidents. As far as opeationeconomics permit, inreased mechanization is the only effective solution to this problem.

2. Risk awareness and involved costs

As noted above, in the better mines, the management's general awareness concrning health and safetyissues is generally good. Besides physical improvements, safety measures include: regular monitoring;the keeping of accident records and statistics; information campaigns; and training courses. Workersare actively required to wear adequate protective equipment and to respect safety rules. However, itwill be a difficult and long-term mission to adequately raise general awareness about health and safetyamong the workforce, even in the bete-managed mie.

In many other min, protective measures and routnes are less developed or bave deteriorated. Thelatter situation is the prevailing one in many of the COMIBOL mines. However, the imminent capitali-zation of many of the mine propertes should offer a good opportunity for greatly improving the situa-tion.

Work injury prevention is a kind of planning that often pays off even economically. A better workingenvironment means fewer work injunes and less sickness absentesm. It is a good affair for the per-son involved, for his employer and for the society in general. These relations are not always wellunderstood in Bolivia One way of intoducing such an awareness in a company would be throughcareful recordiwg and analysis of all health and safety conditions and events, in combination withtraining and education of key personnel regarding injuries and their cause. Thrgh better knowledgeand, as a suggestion, an incentive system which makes workers' accidents and health problems morecstly to the company, a development towards better working environments could be stimulated.

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B. Industial mining

Mining operations, and specially undergound mining work, present very specific problems for thewording environment This is particulady true for the Bolivian mines, which often involve work innarow excavation rooms for the extraction of are fom thin veins. Also, the use of narrow accessgalleries often makes ventilation prolematic. These chteristics mk uneconomical the use of anyLae scale mechanization of the operatons and so consve the use of uditional manual methods(hand-held drilling, hand loading, timbering for rock reinf s etc.).

The major companies are well aware of health and safety questions. MTis was true for COMIBOLduring the beginning of the 1980s, when an ambitious plan for improving working conditions wasestablished. Considerable attempts were made to remedy the many serious problems, efforEs whichhave since been largely halted due to economic and organizational difficulties.

The main private mining companies are managing worrs' health and safety mats wnth considerableseriousness. The reason for this appears to be twofold: 1) the introduction of new advanced technologyhas requd strict safetY ContI, and the processes employed comprise many built-in measures ofimportance for the occupational health and safety; 2) foreign ownership (or part ownership) oftenbrings with it knowledge and sound procedures from industrialized countries. In fact, these two factosprobably represent the main forces for the improvement of the working environment within the Boli-vian mining sector. Of particular importance is the second factor, as new foreign ownership may leadto occupational improvemenots in old installations, as is the case in the several COMSUR mines. Oneaspect of foreign participation is the influence of the international public opinion on the behavior of atleast the major companies. Ihis pressure follows tese companies evea abroad, thus helping to com-pensate for the lack of local awareness.

C Small scale and cooperative mining

The major part of small scale and cooperative mining is carried out unde very prmitive conditionswitLh few safeguards for miners' health or safety. The work is oflin camed out in old aandonedmins, without precautions regarding ventlaton, histing, blasting, and rck caving. Ihis causes theexposure of the miner to extreme hazards.

Ihe nature of the operations, ie. smal1 gmrps of miners excavang more or less at random wheregood ore happens to be found, hs as a consequence tat suppor pillars are removed, waste rock isleft in the galleries making access and ventilation diffiault, explosives are used in a careless way etc-Similar pnmitive conditions are met with in the alluvial gold operations, where the common use ofmercury in the extraction process is an additional health concer.

One of the effects of this work situation is a low life expectancy. Another aspect is the employment ofadolescens or even chdildren in the work. Possible measures for alleviaIting the sitioa are proble-matic as they neawly always would imply investments in thnical facilities which are not justifiablefrom an economic point of view. Advice and training is likewise an intricate matter as most of theseminers are already quite technically experlienced and well informed. Recommendations would oftenmean telling the mnin not to take that risk he will anyhow take in order to eam his living. As arguedin chapter I-C5, the situation is one of social emergency, the obvious solution of which should be analternative, more sound, occupationL

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V. SOCIAL IMPACTS

A. General aspects

Since the arival of te Spaniards in the 16th century, ore exploitation has been the principal economicactivity in Bolivia. For several centuries, exploitation co tated on the production of silver, with ashift to tin towards the end of the 19th century. From this time onwards, mining was transformedsuccessively to an industry, with the introduction of industrial exacton methods. In 1952, the mainmines were nationaze under COMIBOL, which became the largest company in the ountry.

The exporation of raw mateials is Boliia's most importan source of foreign exchange; this econcic,structe makes the county very vulnerable to fluchuans in the prices of raw materials on the inter-natonal market- Thus. the decease in the price of tin dunng the last decade has caused a dasicreduction of mine producton and given rise to a social upheaval caused by mine closures and theconsequent unemployment of thousands of workers, plus a generA economic recession.

From the natilization of the mines in 1952 up to 1985. when Bolivia's new economic policy wasintroduced COMIBOL played a fundamental role in the social as well as the economic aspects ofBolivian mining. For example, COMIBOL prvided social infrastructures such as schools and hos-pitals, and it disguised unemployment with administrative posts. rnis concentration of power gave riseto nepotism and generAted an excessively large public sector - a situation that has caused major socialand econonic distortions, fomng a myth of prosperity and stability around the nationalized ningcompanies.

The massive movement of workers out of the mining sector and into the informal sector is a promi-nent development of the last decade. Before 1985. COMIBOL employed more than 30,00 workers,which multiplied with tfhir dependents, constituted about 150.000 people. A few years aftewards,COMIBOL had only 7,500 employees. Many unemployed miners went to the large cities, while othersmoved to the alluvial gold fields of the Amazon basin

Bolivia is today a country of fee mardwt economy. Ibis shift in economic policy and the comingprivafization of COMIBOL are generating social problems that many miners are not equipped tohandle, either individually or collectively. Instead of being part of a pateralistic system where COMI-BOL mantied a (sometmes ilusory) system of seciml welfare. they DOw find tbemselves salaned -or often, unemployed - workers in the pnvate sector. Trade uimons have been quick to resort to publicor pnvate violence to generate political pressure. These teions are creating a critical situation tDwhich there is no clear solution. However, building up the private sectr in mining could eventuallyoffer a positive way out of the cycle of unemployment and underemployment, if not a definite solu-tioL

The informal mining sector, which includes cooperatives and artisanal mining, is becoming more andmore in respect of rate of employment the number of laborers in this sector will continue to increaseeven more as COMIBOL begins leasing some of its holdings to cooperatives as part of the privaha-tion process. The work conditions are primitive and dangerous, and the living conditions very preca-nous. The cooperafives are seldom prvided with basic services; living is in simple barracks, wate isoften very scarce and the generally poor lifestyle often affects personal cOduct and traditional habits,as weU. Health nsks and safety hazards are not resticted only to the worker himsdf. They also in-

64

volve his family. which often shares his work and living conditions. This situation constitutes a socialemergency of such magnitude and gravity that it has to be regarded as the most critical aspect ofsocial problems in today's Bolivian mining.

In very recent times, there have been pockets of socal protest to problems associated with minng. Forexample, farmers have been objecing sometimes to perceived problems resulting from their relianceon water that has been cotaminated by mning (see Appendix IV.7). Also, a few community groupsand nongovermental organzations have protested new mninig investments, such as development ofthe Inti Raymi gold mine

B. Effects of mining on Andean socdal structures

The indigenous inhabitants of the Altiplano have sigificantly modified their culture and ways ofliving in order to adapt to changing circumstances as Bolivian mining has evolved during the last fivecenmuries. Today, the population of the Altiplano forms part of the genera economy of the country, butthey continue to ecperience important changes as a result of the shifting structue of mimng.

There has traditionally been an intricate net of interrelationships between Andean environmental condi-tions and Andean culture One of the main effects of mining on the surrounding cultual stucures innearby communities and villages is that it has changed the typical values of individual ownership,experience and commitments to the land. This process began as farmers shifted their main occupationto mining, and accelerated as these miners were obliged to sell or abandon their land, either temporai-ly or permanently, in response to changing employment opporunities in the mines. This process hasoften caused the break-up of the ccre family. As individual families must sell or abandon their land,the woman's role changes from farming as a 'compaflea' to pursuing activities in the informal urbansector. In some cases, this means commuting intO town each day fto wark as a street merhant; othertimes, she may move to the city with part of the family.

C. Effects of mining on social structures in the Bolivian Amazon area

There is almost no information about the impacts of alluvial gold mining on social structures in theAmazon. Sedentary communities of people who are indigenous to the Amazon are relatively small andfew in number. The Study Team found no information about conflicts between these groups and immi-grants to the area or other impacts on these groups. Most of the people involved in alluvial goldmining in the Amazon have migrated from other parts of the country. Many of them mc indigenouspeoples from the Andes; the desaiption abovc ef social problems related to the loss of steady employ-ment in the mining sector would apply here, too. Often these immigrant miners and their families areliving and working in primitive, hazardous conditions.

65

VL REGIONAL IMPACTS

A. Genera aspects

A common argument in discussions about the environmental impact of mining in Bolivia is that mostmining occurs in mountainous areas where there is very little alternative use of resources (i.e. land-scape and water). Ihis may be true in some cases (if the question of precsrvaion of the natual land-scape as such is ignored). but in most places there are other competing interests. These 1tt may besmall scale farming, impacts on nearby towns or villages, or the well-being of the very miners (andtheir families) themselves. Particularly in the old mining cities, llke Potosi and Omro, both of whichaccommodate populations of arund 80,000 inhabints, ther are severe conflicts between industy andcivil life. A particular concern is the fishing lake of Poopo (also important to some bird life), situatedin the Altiplano to the south of Oniro. which is being contaminated by mining operations as weU asother activities in the region (see below).

A faily typical example of conflicts between mining and farming Is prsented in Appendix IV.7. Thearea in question is very dry and farmers have for a long time been using water originating from minesfor irrgation. The present complaints are that pollution has ineased. The reality cauld be that thepresent drought has reduced rain water inflow to such a degree that nearly undiluted mine and ARDwaters (pH 3) that are being used for imgation have become aculely toxic. Mine ownes dlaim thatfarmers are only abusing te new awareness of envirnmental legislation to get better facilities orcompensation. iis example shows at what at first appears to be a simple dispute, may tur out,after a closer look, to be a ratber complex case of conflict It also Ilustrates the need for a competentauthority to deal with such incidents.

Another example of conflict, this time concerning the conmination of drinkdng water. is demonstatdby the aband MiUuni tailings dam, located to the ntheast of La Paz (Append IV.8). Tailingsfrm mining operations during several decades were allowed to f91 out a broad valley which is alsoone of the main water sorces for the city of La Paz. Oxidation and leadcing of the tailings ha-veproduced water that is high In heavy metals and has a pH as low as 2.9. The water has to be neutra-lized and cleaned in the Achachicla treatment plant befao it reaches La Paz, at an appreciable cosL

As already mentioned above (Part 4. chapter l[LC). mining is distinguished from many other industrialoperatS in its mandatory localization to the place where the ore deposit happens to occur. Ths oftencases conflicts with other activities which may be dfficult to sclve. A related problem is the uner-tainty about the locations of any new exploitations. Even if certain predictions regarding the existenceof additional deposits can be made, as to type of deposit and geological environment, ltile can be saidwith cerUinty. In fact, the character. size and location of a mineralization are virually unknownparamets until the deposit has been discovered and investigated The exploration efors needed forfinding a new deposit, In respect of time and resources, vary between very wide limits. and there isalways a component of gambing in such work In consequence with what has been said, it is difficultto forecast In any detail the extension, character and location of future mining ventues and the impliedenvironment impacts. However, the folowing general directions may be given:

66

I

* It is to be expected thaL, for the foreseeable future, the focus of conventional mining in Boliviawill continue to be in the Altiplano and to a large extent in areas of previous miaing activities.Ihe environmental requirements in connection with such operations are reasonably wel knownand it can be assumed that, with the introduction of new policies and techniques, he problemscan be managed in a satisfactory way. It may even happen that clean-up operations in certainold mining areas can be combined with continued or reopened activities. It is quite probablethat large bulk mining in open pits will replace underground, seective mining in some aras

* New possible areas for mining in the eastern part of the county (the Precambrian shield)could present new problems and possible conflicts with farming and other interests. A compa-rison between the map of potential areas for minin (Fig. 2:3) and the maps of ecologicalsensitivity (Fig. 2:6) and nature reserves (Fig.2:5) do not demonstrate any alanning areal coin-cidence. However, as argued above, the real extent of possible conflicts cannot be evaluateduntil at least basic information about a new deposit exists. Exploitation of mineral depositswithin namure reerves should be legally prohibited. In this context, it is important that theboundaries of natre reserves be clearly defined.

* Alluvial gold mining presents a particular problem tsee below, chapter VLE.). The main activ-ties are concenwated to the areas indicated in Frg.4:2. Most probably these regions will alsomake up the main exploition areas for the next future. However, It cannot be totally excludedthat new deposits will be found in oher pats of the Amazon basin, with the corrspondingspread of contamination and destruction to new areas. An extmnsive inventory of all preseatalluvial operations, the outlook for the futu, and the en consequences, is an ur-gent task (see below, Part 6, chapter HLA).

B. Poto6i area (for further detais see Appendix IV.10)

The Potosf area has a long history. being developed as a mining r shortly after the arrival of theSpanirds and the discovery of the immensely rich silver mountan Cezro Rico. The counrysde is adry mountainous landscape with deeply cut valleys and elevations varying between 3000 and 5000meters above sea level (the summit of Cenm Rico stands at 4.794 m). Water iLs scarce and is providedto the ciy of Potosl frm a number of artflcidal lakes in the mountains to the southesL The city is setat the northrn foot of the mountain with drainage trugh several small rivers which join to the AljaMaya river. Mhis latter river flows to the west and ulfimately, with otber tributaies, forms the nver ofPilcomayo. The lt dewaters towards the Chaco m the sout. Farming is mainly restted to themore open river valeys.

A major part of the mining acivities in the area are still focused aound the Cerro Rico ( Fig.4:3).However, the mini industry has decHned apprciably durng the last 6-7 years. The population of thecity has deaceased considerably and now stnds at about 80,000 persons. COMIBOL formay ownsmost of the Cero Rico, with its remaining minral resources. but only exploits its lower parts (MimUnificada). Odt comparively large private min ale located at a distance of 50-80 km from thecity cnter. Two new hewp leaching plants exactn silver by the help of cyanide solutions, havebeen constucted in a baren landscape mmedLiately to the south of the Cero Rico. treating old wasterock and colluvial material from the slopes of the mntainr Due to the recession within the minngsector many mines (10,000-12,000) are nowadays active within cooperatives exploiting ore in the

67

upper parts of the mountain. Mhe COMIBOL beneficiation plant (Velarde). as well as many othersmal private plants, arc all located witiin. or in the outskirts. of the city.

Most waste water produced within the city goes unhated into the small rivers which join downstmto form the Alja Mayo niver. Mhis includes the very acid water (pH 2.3), rich in heavy metals, that ispumped from the Unficada mine with a flow of 3-4 I/s. Ibis water joins with process water from theplants (heavy metals and reagents) and household sewage water to form a heavily contaminated flow.Of the plants within the city, only the Velarde plant discharges its waste into a tailings pond (albeitbeing in a precarious state). All other solid waste goes to the rives and sueams where it is partlyremoved. in water solution or suspension, partly deposited as sediments In the river bed. During theoccasional heavy rains most of the sedimented mateial is flushed out to the main river through therather steep water courses.

Sampling or water and bottom sediments were carried out during our visit at several different pointsalong the Alja Mayo river ( Fig.4:4). Even if these samples were collected mainly to give a generalorientation of the situation, a rather clear geneal picture is given, namely one of very high contents ofheavy metals in the w2te of the river as well as in the bottom sediments. The values in water varybetween (approximately): arsenic 4-13 mgll, cadmium 0.8-1.6 mgll, copper 14-44 mg/I. lead 13-50mg/i and zinc 120-358 mg/l. This is ten to hundmed times the internationally commonly used norms formining effluents. Still 20 km downstream from the citY. where the river passes the newly constructedmunicipal hot sprng baths at Tasapaya, the water is heavily polluted. 'The amount of suspended solids,almost exclusively originating fiom beneficiation plants, is likewise exceedingly high, namely 15-30g/l where the river leaves the urban area and still 5-10 g/l at Taapaya.

Based on the available figures, fth annual transport of heavy metals in water solution from Potosi intothe nearby valley amounts to more than 30 tonnes of arsenic, 5 tonnes of cadmium, 70 tonnes ofcopper, 200 tonnes of lead, 11 <toes of antimony and 1200 tnnes of zinc. An even bigger amount isprobably rAnsportd as suspended solids.

The present precarious environmental situation the city of Potosi can be summarized in the folow-ing main points:

- The lack of town plannng and control, allowing concentration plant opeations in the centralparts of.the city.

- The social problem of having tens of thousands of people working un utmost primitive anddangerous conditions in undgund -m.

- The discharge of acid mine water without previous teatment into a river which is runningthmugh an urbanized area

- The free discharge of waste from concentration plants into rivers within the city boundaies.- The lack of a sewer system, household waste wates being discharged directly into iver cause-

ways within the cdty.- Ihe heavy pollution of a river system with contamination reaching far away frm the source.

AR of these aspects are obviously unacceptable, both from a sanitary and an enviromental point ofview. However, due to the intimate social coanecdon, it is very difficult to isolate any one of theseproblems for separate remediion. The solution will have to be sought in general overall planning andeconomic development. Certain foreign companies have studied the possibility of exploiting the upperparts of the Cerro Rico "- lage scale, open pit mining. However, as yet no detailed planning has been

68

carned ouL One major problem is the esistance among thb population against the removal of part oftheir "holy" mountain. Neither would such an opeation be veqY pesonnel intensive, so it would notsolve the unemployment problem. On the other hand, it could restore relative prospenity to the city ofPotosi and open up for the possibilities of resolving, among other things, the evivuonmental problems.

/~~8/

RE-',---

X If^~~~~

. ~~ ,, -

o~ \\ '-

'\,~~~ ' ,e .---

Fig. 4:3 Main mine ant processing plants in the Potosi area.

69

Li

EN EN N;M 7.3*A cm

Cd OM Od 0.14cm 4m cm M-ft&m ft Tim

la= a O'nIA an Mm MAC lu Q=

d GM ad an*A am

am fasDM a. Im

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as km cm I"an am ft mft QM a

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rb Ia.7

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Water sample points (mgM M Concentralion pleM

Fig. 4.4 Map of Fbtosi aW its immeJiate summdings, deMMS=ing the lecahzatiOn Of the msinmaneral processing plants, sites for water sampUng and results of aWysis for selected elements. Allvalues, except p1l, in mgfi.

70

C Oruro area (for further details see Appendix IV.9 )

The city of Orunro is set in the Altiplano. a vast high plateau O western Bolivia at an altitude of bet-ween 3,500 and 4,000 meters above sea level. The northern and central parts of the Altiplano drainsfrom north to south. Thus, the Lake riticaca. at the border between Peru and Bolivia, is dewateredtowards the south through the Desaguadcro nver, Tlis latter river flows to Lake Poopo in the Depart-ment of Orumo.

Lake Poopo is endohidc, i e. it has no outflow. It drains an area of 55.000 km2 . Ihe mean surface ofthe lake is about 2,600 km2 but varies between wide limits during the year as well as between diffe-rent years. Mbis is due to variation in water inflow, the flat landscape ir. which it is set and the veryshallow depth - on average only 2-3 meters. A smaller lake, Lake Urn, Is situated to the north ofLake Poopo and connected with the later as an antechamber. In years of Uttle precipitation, this lakemay dry out completely. Average rainfall during fte penod 1980-1990 amounted to 435 mm, with anannual variation between 220 and 759 mm. Nearly 95% of the loss of water is through evaporation.The mean annual turnover of the water in the lake is very high (140%), which is more than one hund-red times higher than that of for example Lke Titicaca. The salinity reaches up to 4%. The veryspecial properties of the lake makes it an unstable environment with wide fluctmaions also as regardslimnological chaacter (Fisheries Development Limited 1991).

As regards ground water resources, the Altiplano forms an extensive basin of water-bearing sedimen-tary formations. One of its sub-basins, the Caracollo-OnIrI-Vinto sub-basin, supplies water fromdrled weUs to the city of Oruro.

Mining has a very old tradition in the Oruro aea and is stl a major occupation, in spite of the reces-sion within the sector during recent years ( Fig.4:5 ). The historically most important mine, the SanJose mine, is located in the very mountain, on the slope of which the town of Oniro Is built However,the operations in this mine have recently been susperwled due to diiculties in selling the producLAnother major mine in the area is the COMIBOL mine of Huanuni, situated about 50 km to the south-east of Omro. Herc a rich tin deposit is exploited under somewhat chaotic conditions (30-50% of thepIoduction is stolen, by workers and intuders). Other mines include the Santa Fe mine about to beclosed, and the Bolivar mine, which will be rehabilitated and reopened shortly tmhugh a joint venurebetween COMIBOL and a pnvate parte. About 40 km to the northwest of Cano, the new majorgold mine of Intl Raymi is employing a process of cyanide leaching. Unlke Potosi, the is no smallscale or cooperative miing within te city of Onm. However. such operons are common in theHuanuDi area (eating ore fom the upper parts of the deposit or waste from the concentation plant)and at abandoned mines in the Santa F ad Bolivar areas. The imo smelter, located about 6 km tothe southeast of Onruo. is the only major tin smelter in the country, teating concentrates fim Bolivianas well as other sources

Ihe city of Onuro bas a population of close to 100,000 inhabitants. Apat from the mining activities, arather vaned industry exists. Due to the dry climate, water resources are generally scarce. Not somuch, hough. in the city of Omro, as in the mining towns. as for example in Huanuni with 20,000inhabitants. In such plac thre are often conflicts between the reqirements of the mining companyand the needs of the civil populauion

71

In&l Raymi 5

Fig. 4:5 lApof die DOno area exhibitigmi ies xe proesn plai, ndwersmplnsites. For anaflyilcal results, see ApenIx 19.

72

Water pumped from the different mines in the region is very acid. An exureme example is de waterfrom the San Josd mine in Oruro, which has a pH as low as 1.2-1.7. Ibis and other mine waters in theOniro area are also extremely high in heavy metal conteaL The San Jose water is pumped from themine to an exit in the slope of the mountain above the city. From there it is taken in an open channelto the northem outirts of the city where It is mixed with sewage water and garbage in wide chan-nels, flowing towards the south in the direction of the Lake Uru-Lake Poopo. However, part of thewater is also infiltrating the ground, causing conrosion on municipal water pipe-linas as well as onconcrete sewage tubes. Ihis sometimes results in water losses as well as the mixing of drinking waterwith acid mine water and scwage water. As the piping systems get older, this problem is bound to bemore and more acute. A possible closure of the mine and a cease of pumping would not solve theproblem to any greater extent, as acid water would still emerge though natural flow. A neutralizationof the water with simulaneous precipitation of the heavy metals would be a solution, albeit a costlyone. Obviously, before taking action, detailed studies winl be needeA to define the problem and indi-cate the options. A complicating fctor is the uncertainty about future minin activities in San JosL.

Waste rock firom mines. as well as tailings, occur extensively in al of the mining areas, located inimpoundments or spread out along slopes and in river beds. This material usually contains highamounts of pyrite which easily oxidizes and, with water, forms sulfuric aid. The lter leaches outmetals, the result being waters of the same charcter as mine waters. This problem occurs both in thecity of Oniro and in many other pesent, or previous, mining centers.

'ihe Lake Poopo area represet an important ecosystem in the Altiplano and in Bolbvia. Its shallowdepth, the conspicuous variation in its eansion and the high salinity are some of the fa s whichmakes it unique. Fish, duck and flamingos are prominent members of the falna. Regarding fish theonly indigenous species in the lake is the karAche (Orestias luteus), but the Argentnean pejerrey hasbeen introduced with success. Preent fishing Is carded out kom three viages from the easten sboreof the lake. ITwo of these communities are the last relicts of the Urm Muratos tribe, who originallylived on reed islands on the lake and still keep their own particular arcbitecture when building theirhouses. A sudy made in 1990-91 showed that dose to 500 fshermen were engaged in fishing, landingabout 720 tomes of pejerrey (1990) at a total value of USS 184,000 (fisees Development limited1991)-

Already in the beginning of the 1980s, fisbermen were complaining about the poor capaues along theeastem part of the lake, supposedly caused by metal contamination from mining opeatios. 'hs wasinvestigated by Beveridge (1983). who carred out a study regarding the chemicl composition ofwaters, soils, plants and fish from the lake, revealing marked anomalous me contents in all of thesemedia Conceng the Analyses of fish, the results showed an increase of most of the heavy metalswith a factor of 5-10 times in comparison with Canadian fisL Fish captured during the last few yearsis reported as being much smaller than in previous years and also, in many cases, extemely thin Tbisis thought to depend on two causes: the collapse of the food supply due to the last years' drought; andthe supply of heavy metals from the mining areas (Fiseies Development Ltmited 1991).

It is obvious that the deicate PoopD ecosystem is seriosy threatened by contaminations from miningoperaons (past and present) as well as by antiopogemic pollution from the city of Oruro. However,the issue is complex and many of the factors influencing the survival of the Lae are little known. Asremediation can be foreseen to be quite expensive, It is most desirable to urgety carry out the neces-sary interdiscipinary studies, on which mitigation measures can be based.

73

Minor studies to evaluate mining impacts on lakc Poopo and the city of Onuo have been proposedfor funding under the Enterpise of the Americas pmgram.

D. Quechisla area

The Quechisla mining area is located in the southern part of the easte cordillera, about half-waybetween Potosi and the border with Argentina. Within a radius of 50 km. there are about 50 differentminng opwratons. mast of them small. The landscape is mountainous and desert-like. with a pr#cipita-tion of only 100-200 mm per year. Water is thus very scarce, most of the possible sources beingsurface wate. The altitude varies between 3.000 and 5,500 meters. Drainage is towards the east(northen area) and towards the south (southern area).

Up to a decade ago, several medium-sized mines were operating in the area. Today only the SanVicente mine, located in the southern part of the ama, is in regular operation. Several previous COMI-BOL mines. as for example Tasna. Chorolque, and the Chocaya group. have been leased to smallminers or cooperatives. The operations can be divided into producers of concentates of tin, zic-lead-silver, antmony, bismuth, tungsten, and gold, or a combination of these commodities. While SanVicente produces zinc-silver, the smnll miners exploit mainly for tin and (more recenly) gold- Abismuth smelter in Telamayo was closed in 1990 due to lack of proflltbihty. Anodher smelter in theregion, the Bnal Hnos antimony plant in Tupiza, is opeting at a capacity of only 50%.

The long and extensive mining acivities in the area have had a substntial Impact an the environmertLarge waste heaps am left (totaUlly 8-10 million tonnes) without much care and are now eroded durngrAis and leached of their heavy metals (acid rck drainage). Mbis is for example the case In Telamayo,once a veiy busy mining center, producing a vadety of concenates and bismuth metal. The leftoverold tailings, originating from Animas (Table 3:6) and other sources. are now being naturally leached,producing elevated contents of arsenic and lead in wates and sediments as far as 20 km dovwstreamthe Telamayo river.

The still active "major" mine, San Vicente (350 td, produces mine wat, wbich mixed with sewage,contamin the local nver. 500 meters downstream from the mine, the water contains the extremelyhigh concentaions of 6 mg/l cadmium, 31 mg/l copper. 1 mg/I nickel, and 580 mgfl zinc. The orefrom the mine is anspoted by truck I5 km to the Vetias plant Tne tailings from ibis plant goesdirectly into the Vetillas river, the latter fiorming a furow in old waste, 0.5-5 m deep and stretchingmore than 5 km downsream. A new tailings dam has been prepared but is not used due to the cost ofpumping the sludge. This is. anyhow, not an optimal soludon, as it implies taking the wast to anuncontaminmated small valley without taking any umeaes concernng the old waste in the nver bed.

In summary it may be said that the Quecbisla area exhibits very similar environmentad problems as theOmro and Potosi area. The man difference would be tat there are no large popaion centers and thetotal lack of altenatives to mining. A particular feature is the extremely low precipitation and thegeneral relianc on rivers and dams as sources of wate. The widespread polluto fMm mining activi-ties puts toe use of such sources in danger. The possible aminaton of agricultal land along therivers futher downs=em is another concern.

74

E. Bolivian Amazon Basin

Alluvial gold mining is a regional problem as it affects large tracts of land. In spite of the present lowpnce of gold on the wodd mat, extensive exploitation is going on. mainly, along the Tipuani andadjoining rivers. Data on alluvial gold reserves in Bolivia are poorly knownx but the qunttity isthought to be very large, at least regarding lower grade deposits. The main potential reserve include:(1) palaeochannels and recent placer deposits along the drainages of the Tipuani and adjoining rivers,within a region covering about 20.000 km2; (2) old niver courses of the Madera River, close to theBrazilian border, thought to contin as much gold as that having produced in the area hitherto; and (3)glacial deposits in the norteastemn Altiplano. An increase of the gold pnce, improvement of ihastruc-ture, and development of extraction technology could make exploitation of these reserves economicallyviable and so cause new gold nrshes. Also, it cannot be excluded that gold-bearing alluvial depositswi be discovered in otber parts of the Bolivian Amazon area

A major part of the prescet gold production stems from operations run be "coopeativcs", these la=erbeing organized in a manne similar to that described in Part 4, chapter LC.5. A majority of theworkers are the so-called "voluntarios", who are only very informally linked to the operations andwork for a "paton" in retun for he right tD excavate for their own gain during a number of hours perweeL the total workforce can be counted in tens of thousads of individuals. The large dredges activein the norheastern border ar ate owned and managed from the Brazilian side.

An obvious envnvnmental concern associated with alluvial gold mining is the direct impact on nature.The very character of alluvial gold operations involves large scale effects on the landscape thrugh thedredging of river beds, divemsions of rivers, the removal of river terraces, deforestation. etc In theseworks, no attention is paid to environmental aspects and government authorities exercise no controlwhatsoever. AnoNt± factor, with pobably even more smous conqnces, is the contaminon ofwaters and soils witfi mercury. Iis on-going poisoning affects tbe mines themselves directly as welas indirectly and represents a long-term tieat to the Amazon cosystm (see Part 4, chapter E]:F).

75

PART 5: ASSESSMENT OF THlE INDUSTRIAL (MANUFACTURING)SECTOR

L INDUSTRIAL STRUCTURE

A. Hbtorical perspective

The mu ng Industry In Bolivia experenced a prolonged recession duing the 1980s. In 1991,tie toul production volume was still only 76% of that in the peak year of 1978. However, a clearincrease in production has occurred since the exteme low in 1985 of 59% of the 1978 level. Thepositive development of the manufacturing industry since 1986 is demonstrated by annial growthfigures higher ftan the GNP growth rate for almost every year of this period. For example, in 1991,the industry growth was 6.6% as compared to a GNP grwth of 4.1%. TME same year, the contibutionw the GNP by the manufacng industry was 13.72%. which co,'d be compared with the mean valuefor Latn Amrenca. about 25%. The most expansive branch of the inukstry has been the food industry,rising from a share of 39% in the peiod 1972-79 to a share of 56% in 1986-90, while the textileindustry has declined during the same period.

he role of the manufactuing industry in generating export income to the country is fairly modest butinreasin. While total exports icreased from US$ 638 million in 1986 to 927 million USS in 1990,the share of the manufacturing Industry duig that period grew firom 17 to 32%. Among the mostsuccesful products on dhe exporL maikts during the l;st few years were sugar soya flour, textles andleather products.

The Bolivian manuf ing ndustry is mainly artisanal. In 1987, private industry comprised some12,700 entpises with a tota of 49,000 employees, which means that the average work-force wasfewer than 4 persons per manufacting unit. Thee are only some 1,300-1.500 entpdss having morethar 5 employees, wbich could tus be considered as true "industri". Among the bigger inustethe dominant ones are oil refineries, cement plants. oher chemical Industes, food and textile in-dustries. As much as 83% of the indus=ial aded value and 82% of the industial employment aregeerated in the dements of La Paz. Sat Cru and Cochbaba-

B. Major categories of Industrial activity

Ihem are about nine prominent categries of idustria manufacug in Bolivia, as listed below. iheStudy Team visited examples of all these different activities. The emphasis was on larger operationsthat are likly to have a more significant impact in terms of both the ambient environme and occupa-tional health. However, many of the issues stdied lso arise in smaler opemtions, dhough on a morelimited scale. The number of employees in the plats visited by the Study Team ranged from 10-650employees; in most cases, the team concnte on plants having betwean 50 and 250 employees.

76

1. Metallurgical industries

Ihe primary smelters we dealt with in Part 4 of this report, dLapr IILEA4. In addition, there aresevera smaller metlurgical plants smelting scrap metal to produce such items as valves and fitringsin bronze, brass, aluminum and cast Ihis industry mainly prduces for the local market, as do theimr casting planms manufauring equipment for the mining industry. Another activity in this sector isthe recycling of spent lead battries and tin scrap (e.g. Hormet SA in La Paz) with production of leadtubes, reconstituted lead bateries and welding metal.

Some of these small-scale industries play an important role in the recovery and recycling of valuablematerals, thereby conlrbuting to the replacement of imported products by domesdc production.

2. Metal and metal finishing industries

Tiis branch is rather small as far as the total output is concerned, although a grat number of verysmall enterprises are involved in the sector, particularly in El Alto. The growth of this sector is pro-bably hampered by the very high degree of recycling of spent metalc spare parts on the local marketsin El Alto and similar popular makets.

3. Industrial mineras

Ibis sector includes the indstries tha manufact cemn, asbestos cement and glass. These branchesusualy extract the raw materials firm mines or quarries of their own: limestone, silica and gypsum(cement industry). crocidollte and yellow asbestos (asbestos cement industry) and silica, dolomite andcalcite (glass industry). One manufatr of asbestos cemnct products (Duralit) uses imported awmatedals.

The cement and the gla industries have presenty entere.J into a very expansive phase to meet thegrowing demrand For example, of the four cemnt plants in the cunn (i Chuquisaca, Cochabamba.La Paz and Tarija) at least one is cuTently Implementing a production increase of more than threetimes. Iiis wil probably satisfy the domestic demand for cement, esimated at 600.000-700,000tonslyear at least for a few years to come. Also the glass boale mafamurer. Vidriolux Ltda. mCochabamba. is currently implementing an expansion project to inrease daily productio from 40 to70 tons, with the aim of exporting (to Pau) abomt 50% of the future production. Ibis is possible sincthe company can meet the high product quality requirements set by the intmatonal soft drink pro-ducers.

Tne industry based on domestic asbestos is very smal scale and does not seem to have any potenalfor expansion, mainy due to the fiuhity of the low-grade mineral deposits in Alto Chapare Today,only 2-3 of the previously more than 15 asbestos quames in tLt area are in operation, and the pros-pects for the future are deemed very gloomy. For example, an asbestos concenton plant built imCochabamba (belonging to CORDECO) has never been in operation, except for some pilot scale ns

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4. Petoleum industry

The petroleum industry in Bolivia is completely domnated by the state company Yacimientos Petro-liferos Fiscales Bolivianos (YPFB), which was created in 1936 and given the mission to explore.exploit, refine and distribute the hydrocarbon resources of Bolivia. The curent production of cmde oiland natural gas. expressed in oil equivalents, was 120.000 barrels/day in 1990 and had increasedslightly to 130,000 barrels/day in 1991. This total production achieved by YPFB and its subcontractorscan be divided into 30,000 barels/day of oil and 530 million cubic feet/day of gas.

Mhe latter is utilized in the following way: 41% are exported (exclusively to Argentina); 35% ameremijected into the oil-beaing formations; 7% are sold on the domestdc market; and 4.3% are con-sumed intenally by YPFB. Ihe oil produced Is refined in the three YPFB-owned refineries, one inCochabamba (cap. 27,000 barsld), one in Santa Cmz (cap. 15.000 barrels/d) and a small one inSucre (cap. 3,000 barresd).

The oil and gas production fields are located in the central and southen part of the country, just to thecast of the Eastern Cordillera. Twelve cil pipe-lines and 8 gas pipe-lines (3,790 and 2,430 kminlength. respectively) tansport the hydrocarbons to the refineies and/or to the industrial consumersand to the points of export An oil pipe-line connects the central oil fields with the port of Arica inChile, but currently no crude oil is exported, since production is in balance with domestic consurp-tionI However, due to the light charcter of the crude, the production of some heavier products. suchas diesel oil, does not cover the internal demand. hberefore, diesel oil is imported, mainly throughAica to cover the existing small deficit On the other hand, gas is currently exported to Argentina(about 200 milion cubic feet/day), and a new gas pipe-line to Puerto Su, for export to Brazil, isplanned.

The main operations in the refineries are distillation ir order to fractionate the cude, catalytic reforma-tion to obtain gasolines with high octane numbr, and refining of the, heavy fractions to produce lubri-can (1.000 - 1.200 barlsday). The final products are gasoline for cars and aircfts. jet fuel, liquidpropane and butane, kerosene, diesel oil, fuel oil and lubricants for ose in engines and industry. As anauxiiawy product, electrical power is generated in over-sized gas turines (in Santa Cruz).

Prospectng for new oil reserves has been limited in the past, but after a rece legislative change,several inenational oil companies are become active in prospecting, drilling and production of oil.while YPFB cntinues to opeate the rfining and distribution systems.

5. Chemical industry

Althougb this sector is fairly restricted in Bolivia as far as tbe total number of enterprises or the totalproduction value are concerned, it covers a great variety of activities including production of basechemicals, explosives, soaps and detergents, dyes, paints and pharmcuticals. The sector also indudessome recycling, for exmple recycling of waste lubricant oils and man ing of various finishedplastic and rubber products. The chemical industries are mainly concentrated to La Paz - El Alto, wilhsome presence also in Cochabamba and Santa Cruz.

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Among the larger units in this sector, in addition to the pharmaceutical and plastic aactimugplants in the La Paz region. the explosives manufactUrer "FANEXA" (partly owned by COMIBOL)and the soap and detergent producer'"QUIMBOL", both in Cochabamba, are noteworthy. The formerruns at reduced capacty due to the declining market for explosives in the mining sector, while thelatter faces increasingly tough competition from imported products sold by large transnational compa-nxies.

6. Leather tanning and shoe industry

This is traditionally an important sector in Bolivia. The tannig industry was iceasingly successfulon the export market during the 1980s with an expat figure of more than 17 million US$ in 1989.`here are many medium-sized and small units, mainly located in Cochabamba, but also present in La

Paz and Santa Cruz The couny's biggcst shoe mantfacturer. 'Manatca" is among t1x 20 or so Lan-neries and shoe factories located in the Cochabamba region.

7. Textile industry

The textile industry was the second largest manufaing sector (aftRr food industry) in Bolivia in the1970s. but has progressivey lost its importance. It resented less than 8% of the total manufactuingvalue in 1990.

The traditional wool and coton industry has declined at the expense of syntetic fibers, a changewhich has, however, resulted in a strong recovery of export sales, amounting to a 25% shre of thetotal of exported manufactured goods in 1990. Ihe highest caoentrafion of textilc plants is in La Paz,but the industry is also well established in Santa Cruz and Cochabamba. and with a few units in Oru-ro.

8. Paper industry

Paper and carton mnufactuing is a very small sector in Bolivia, with only one or a few small millslocated in each of the departments of La Paz, Codabamba and Santa Czuz All these units use re-cycled paper, waste fibers andlor imported pulp as raw mateials. Te associated paper converting.gmphics and prinng indutry consists of many medium-ized or small units, mainly concentated inLa Paz

9. Food industry

The dominating position of tis sector within the m sector has continued to increase. bothwith regard to its total value and to number of enterpriss and total employment. However, the Boli-vian food industry is predommiany proding for te local market, its export share still being as lowas about 10% in 1990, although derivatives of soya seem to have been very expansive on the exportmarkets during the last fiw years.

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The bigger units wittin the sector include; the edible oil plants (at least two of which, SAO" and"MO", are implementing important expansion projects); the sugar mills; the distillries; the brew-erics; and a yeast and food facuty (in La Paz). Several mcdium-sized or big units are encountered inthe sub-sectors slaughter-houses, milk-product factores, soft-drink bottling plants and cereal proessigplants-

The big factcies processing soya, sunflower and cotton gains, as well as sugar cane are mainly lo-cated in the department of Santa Cruz, although a large refinery for edible oil operates in Cochabanba.All major cities have at least one brewery, one or several boaling plants for soft drinks all one toseveral slaughter-houses and meat-packing andVor otber caming plants.

Many of the private modern food-processig factories have adopted the best available inte onaltechnology, while there are still several older units. e.g. in the sugar mill and the slaughter-house sub-sectors, usmg obsolete and very wasteful tehnology. This is particularly true for the mui cipal-ownedslaughter-houses and state-owned sugar mills.

10. Misceilaneous

The nine industrial sectors discussed above are all characteized by operations that cause some degreeof en enal impact or considerable hazards with regard to occupational health and safety. Inaddition, the mg industry comprses a variety of other activities whose oprations havereatively mimor cavironmental impacts. In Bolivia, these sub-sectors indude clothing factories, saw-mills and wood-procsg (eg. funtre) factoies, which are qmute important sectors with regam tothe number of enterpnses and the employment offered. Other low-polluting and normaly very small-scale operations of some impornce in Bolivia awe found within the ceramic industry, the manfac-trng of machinery, elecal appliances, nstuments, etc.

IIL POLICY, LEGAL AND INSTMMUTlONAL FRAMEWORK

A. Economic/legul reform and the Industr sector

The New Economic Policy of 1985 also appiBes to the imdustial sector in Boivia, as it does to themning sectr. his poicy aims to promote fiee maket and competition; joint ventures and iinialreconversion of obsolete operations antended to faciitate technology transfer and in othcr waysmodernize the systm Margnal operations are no longer to be protected and state interventionism andprotectiosm have been eliminated almost completely. Incentives have been redirectd eliminatingpreferential low rate cedit and focusing on incenives for innovation.

Most restictions on exports have been eliminated and a unifoxm tariff system on imports has been putin place. The national strategy is to allow market allocaions to develop v4th less Interference from thegovernmenL The new economic poicy specially favored non-ftadtional expo, such as leather goodsand agro-based produ. The new Law of Investment, enacted in 1990, stmngly encourages foreigninvestment The law establshes a clear and stable set of rules to allow repatriaon of profits, capitaland interes, dividends and royalties, liberated exchange rate and tansfer of technology.

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B. Industry and environnent

1. Waler

Bolivia's municipalites exercise varying degrees of control over urban water quality, often throughdelegated administative entities, as discussed previously in Part 3. chapter m of this reportMunicipal efforts are sometimes supplemented by the Regional Development Corporations' Direc-toates for Sanitation, which focus primarily oa rural areas.

The Ministry of Urban Affairs has not implemented its 1985 Regulation for Disposal of IndustralWaste into Bodies of Waler. Further discussion of this regilation appears in Part 3, chapter V.E aboveand Part 3, dchpter ITLD below.

2. Oher envimental media and categories of acamiants

Apart fron some rather basic solid waste collection and disposal procedures in urban areas, Boliviahas little in the way of legal requirements or functioning progams to manage enviromnental qualityother than the activities regading water summanzed above.

C. Responsible government institutions

TMe roles of the maim national, local and regional instiuons that have been involved with environ-mental matwrs relating to indusry was discussed in Part 3. chapter EL The other key institution is the'Ministry of Expotation and Economic Competitiveness (MECE).

MECEs mandate is to encourage industrial growth and development; this implicitly includes authorityto regulate. conhal prevent and monitor pollution caused by industry. Thus, in the past, MECE hasprepared some regulations on envirnmental management, such as concerning the emssions producedby vehicles that run on diesel fu*l.

MECE is now preparing a draft decree, to be pomulgated by the Presiden, to create the BolivianInstitmui of Naoms and Quality (IBNORCA). This would be a private institution, with MECE repre-sented on its executive committee. IBNORCA would be in charge of:

- regulating the quality of products;- issuing permits regarding quality of products;- regulating ics of packaging. measurements, etc.;

prping sads to control environmental quality related to the industry (water, sodl andair); and

- registering qualifed test laborataoies.

MECE expec this institution to take the lead on all environment aspects related to the industialsector. IBNORCA would prepare proposed standards and MECE would then enact then throughministerial resolution. MECE expects SENMA to participate in some of the technical commitees to becreated within EBNORCA. Beyond this, it is not yet clear how IBNORCA would fit within the larger

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institutional context

From 1954-85, the predecessor agency to MECE maintained an industry register in arder to build adata ba to help implement certain requirements. However, the register was not kept up tu daft afterintroduction of the new, more liberal nanional economic policy in 1985, and the GOB has decided toeliminate this register altogether.

Instead, MECE administs a Register of Commerce and Corpoations, all companies inrported inBolivia must register themselves. MECE would be incoporang to the same procedure what is calleda Individual Corporative Register (Registro Unico Empresarial), that would be a section to obainsectoral information regarding the existing industry in Bolivia, in order to perform ex-post facto eva-luations of the ministry's policy.

There is no forMal requireme that induSties register with either the National Chamber of Indusryor the department chambers, although they are expected to do so (although this depends largely onthe ability of the Chambers to attzact new members). The Chambers have been playing a very impor-tant role within the process to control industrial pollution. The National Chmber has created a Com-miUee of Environmental Affais that works with SENMA on preparing the new environmental qualityxegulation.

DL ENVIRONNTAL CONCERNS (for further details see Appendix IV.1 i)

A. General aspects

MTe manufacturng industry. as defined for the purpose of this repmt, basicanly incudes all industriaactvities in Bolivia except (a) mining and concentrtion of metal ores, (b) exploitation of alluvia golddeposits with the subsequent prxduction of gold bulion. and (c) smelting or fuming of base metls inPrmary smelters. all activities that are discassed in Part 4 of the present reporL Thus, the "manufactu-ring industy" covers a very wide range of indil activitie carded oct at widely difent scales.having various influences on the sustailability of natural resources, and caudng a vaiety of envirn-mental changes and/or impacts.

Unlike the mining industry. the manufacturing industry is not by definition consuming non-rnnewablenaurmal resources. Some sectos, such as the mineral-based induy (cementL asbestos, glass) and thepetroleum industry do rely upon non-renewable natual resources, but other secto use renewableresources as dir main raw material This is particularly tue for the agro-based and foresby-basedindusties. Furthermore, several industrial operations are focusing on the recyding of various kinds ofwaste mateals in order to produce useful produc, thereby actively contrbuting to a sustainablemanagement of scarce resources.

Thus, the manufacturing industry exhibits a whole range of pracices when it comes to the responsibleand sustainable handling of raw mateials, frm recovery anid recycling to a desffuctive use. Howevecr,almost all sectors contribute to the depletion of fossil energy soures and to conminton of water.air and soil duing the tansformaton of raw materials In funished produc

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As pointed out before, the manufacturing industry in Bolivia is small, both compared to die miningindustry in the country and to the manufactuing idustry in most other countries in Lain Ameica.This obviously means that the environmental impacts caused by this industry, tk as a whole, shouldbe comparatively much smaller than those of the mining sect. Since the geater part of the Bolivianindustry transforms agro-based, organic materials into products, its contaminants and environmenalimpacts awe diffen from those caused by the mining sector. Also, it Is often difficult to separate theenvironmental impacts caused by indusmial wastes frmm those caused by municipal sewage, becathe contamnants are similar (organic substances. nutrients), and most industies are locatd in denselypopulated areas. Nevertteless, one can identify the following enviromnental conces related to theBolivian manunfing indusny

Consumption of non-renewable energy and non-susainable use of other natural resources- Fossil fuels- Raw matcrial base non-sustinable- Concentration of industry to areas with scarce wate resources

a Land degradation- Inmdequately plnned transport systems- Siting in densely populated areas- Los of recreational areas, green belts, etc.

* Waste water effluents- Contaning high organic load (BOD)- Containing slowly degradable organic substances- Containing nutrients- Containing tDxic substances- Grondwate contaminanon

a Solid wast- Inadequte disposal practices- Lack of recovery of usable residues- Hazardous wases

o Air pollution- Dust

- Noxious gases (SO2, NO1, CO. CFC)- Extemal noise

Unlike the mining sector, the manufacturing Industry in Bolivia does not yet seem to have caused anymajor large-scale or regionai negative impact on the natual environenL However. there are rlreadyseveral examples of local or medium-scale detrimental impacts on ecosystems, soi]s and the humanenvironment, indluding large fish-kills, impairment of agricultural activities and seve nutiane toman thee have been caused by emissions of toxic substances, dust, bad odor or noise.

Ther have been to daft relaively few in-depth investigations made on the inemta efficts ofthe Bolivian industry Ibhe aready demonated avse effes, however. clearly jusdfy a conedattitude towards the sector as a whole. But this concern sbould not hide the fact that at least some sub-sectos of the Bolivian industry obviously have beneficial impact on the environment, whm they

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actively contribute to a more rational reutilzaon of msidues and recycling of wastes. A quite com-mon observation. during the many iterviews made with Bolivian industry managers, was that thegeneral awareness and knowledge about environmental issues was fairly well developed. Althoughsome commendable initiatives towards environmental protection measures were noted in several cases.the missing link in many other cases tured out to be the lack of clear inc ves or well formulatedrules to stimulate furter steps towards an improved environmentL

B. Use of land and nstural resources

1. Siting of industrial plants

The most fundamental requirement in order to achieve a rational udlization of natural resources and tominimnizc the environmental impact of an industial plant is to locate it on an appropriate site. Unlikethe mining industry and crude oil production, which have to be located where the meserves ame, amanufacturing facility usually has several options for siting. Provided raw materials are availablewithin a reasonable distance, energy and water supply is adequate, a trwanspt system and a recipientfor waste water discharges are available, and the market for products is within reasonable reach, theexact siting of a new productlon unit must be made with due consideraion of the environmental as-pects. In countnes actively promoting sound environmental management, usually the local or regionalauthorities give assistance to industry by pmviding the necessary infirastructure to opmnize the over-allland-use planning and to minimize adverse environmental effects.

Such rbonal planning of industry siting with a consequent segregation of indusial and urban areas isa relatively recent - and still limited - phenomenon in Bolivia. TIe best example of a well-function-ing industial estate can be tan from Santa C:rz, vwere about 750 hectes northeast of the ur-baized area of the city were reserved for industial development (Flg3:l). At the end of 1989, about250 hectares were developed and almost 150 industries installed. Mhe municipality has provided thenecessary infrastructure (roads, water and energy supply, sewer systm and storm water collectors) andis operating an effluent teatment plant (FEig5:2). which serves the industries esabished in the area, aswell as the domestic effluents from nearby areas. Ihe main problem in Sant Cuz is at the segrega-tion of industrial and urbanized areas is far fom complete. Many older. but also several new, in-dustrial plants are located witn the city, causing vanous types of interferences with the denselypopulated areas, with the urban sewage tent plant and with the ground water quaity. Furth -more. many of the most poUuting industrial installations in the Santa Cruz area are located close to thebanks of the nearby river Pirai (or its tributaries) and these industies (sugar mills, tanneries, distillery.milk product factory, etc.) discharge their waste waters more or less directy ino the river, often with-out any adequate effluent tretment, sometimes cing severe conflicts with the alternative uses of theriver (e.g. recreation, fishing, irrigation).

Simil initiatives to set up Industrial estats, although much less developed, have been takpn in ElAlto, Cochabamba and Orno. In El Alto the designation of an industrial reserve has been mad with-out any guamatee of land nghts and without provision of basic services such as electlcity, watersupply or sewer systm The induistal estate in Cocabamba is located very far from the city in anarea vwth very poor road access. The provi5ion of basic services by the ai mcapahity seems to be verylmited. Very few industries are located in this area the most conspicuous example being the explo-sives factory "FANIEXA. The case of Onuo must 21so be characteried as a very balflerted de-velopment of an indxstrial estt. However, along the road to Vno, her Is concentration of

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REFERENCIAShiAREA ADMINISTRMAlV

/h,, _ LAGUNA DE OXIACION/E 13 :a ETAPA

2a ETAPA3m ETAPA

AREA URBANAr

Fig. 5:1 The industial park of Santa Cruz Source: SAGUAPAC

industries in the Zone of Guajara, relatively segregated kom urban areas. and where some basc lnfra-sucture has been provided.

The most deficient situaion, wvth regard to industry sitmg, is the one existing in La Paz, were severalbig, poutmng indusaes am located in the middle of densely nhabited reas. Since there is vially nospace available fir these industies to build individual effluent treatment plants or othe wse treat-ment systems, the urbanized area, including the main river Choqueyapu, is beavily contaminated byindustnial waste, particay during the dy season. ThL e is presently no coDedive system for

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LO 4,32haa

L3 0.74 112 071 IU OM5wnaerb enaemb. tXicos

L4 1.80facuMmUv

L5 432puilmento

Fig. 5:2 Layout of fte waste wate reatment plant at the industrial park of Sana Cuz. SouMe:SAGUAPAC

reatment of the domesfic and/or industral effluents in La Paz, nor for teamen of the heavily con-tminated river water. This sintation causes an unacceptably high rsk in fte agricultural communiteslocated downstram the city, where the river water is used for irrigation of various crops Includingvegetables. Both the high degree of bacteal and viral conumination of the river watrr and its con-tents of persistent. toxic mateials (e.g. heavy metals and other industrial wastes) constitutes a hazardnot only for the people living and working in the area, but also for the consumers of the agriculturalproducts.

There are, however, examples In Bolivia of a responsible and cooperatve management of the potentialconflict between industry and agricultr. For example, in Cochabamba, some industries (e.g. the"Taqiiiae brewery and the soap and detergent factory "QUI1MBOL") distribute their waste waters, insome cases after pre-treatment and control, to farmer associations for use as a safe irrigation water.Ihe same is tre for the combined domestic and industial effluents from the city of Cochabamba.which after final teatment in a collective treatment plant ram by SEMAPA are distWibuted to a farmingcommunity.

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2. Linkage to raw material base

Alithough the environmental problems encountered in the production of raw materials used by industryare not a centrl topic of this report, it might be perlinent to briefly discuss this indirect relation bet-ween Industry and raw material supply. It is obvious that the markets and hence th structure of theagro-based industry to a cerutain extent is a stering factor for the structuring of the agricultural andhusbandry sectors. For example, when the textile industry delines, the demand for cotton decreases.and conversely, when the production of soya derivatives increases, more land is being used for soyacultivation. Since different crops and different husbandry practices cause quite diffeet degrees ofpressure on soils and varying degrees of overall environmental impact (use of pesticides, impoverish-ment of soils, deforestation, etc.), the governmeat miglht consider ways to promote a developmenttowards Improved sustsinability of the natural resources used as rw materials for industry. Ihis couldbe achieved e.g. by aeating special incentives for those industies relying upon raw materials thatcause minimal envirmmental degradation. Induslries which are already practicing advanced recycligas a part of their business philosophy (paper mills using waste paper, glass fictories using recycledbottles, battery factories using spent lead batteries, hydraulic oil manufacturers refining waste oils,factories cornverting e.g. slaughter-house wastes into useful products, etc.) could be given speciadvantages, such as tax reductions or reduced treatment or disposal costs (when charged by the muni-cipality) for their residual wastes, as compared to the general cost level.

3. Eny consumption

ne petroleum and gas industry is obviously consumig a non-renewable natural resource. Nevertbeless, it may seem reasonable to cover the intenal demand of hydrocarbons by domestic production,especially since the Bolivian crude oil has an excellent qualty (very low in sulphur (0%Y) nitrogen,heavy metals and aromatics) which limits the local and regional air polltion. On the other hand. theburning of fossl fuels always adds to the global inrease of carbon dioxide.

The question is to what extent the goverment should try to infence the choice of energy sousfor example by sterng the energy consumon from the use of fossil fuls towards usc of rtoewableenergy. e.g. hydroelectric power or bioenergy.

At the present stage, the Bolvian industry takes a very small fraction of the total energy consumptionin the country (only a few percent), and thefe, any modification of the industys energy consump-tion patten will only have a very minor significance. Many industal plants have reoendy swibhedfrom fuel-il to natual gas as energy source for their boilers. At least some of the cemet plantscurrently use natural gas as fuel for the kin, and the big "Vinlow smelter recently switcbed to gas. Theoil refiny In P almasolaSa Cruz. genaes electricity in 3 gas turbines fuelled with refinery gasand natural gas, and the surplus electricity (abou 2/3) is distributed to the regiona grid.As a whoe, the YPFB is covering its cnergy demand in the refinere at 80% by nal gas and iscurrely changing thre diesel oil motors in pumping stations to natual gas fuelled mots.

4. Watr supply

A considerable part of the Bolivian industry is located in regions where water Is a very scarce com-modity. Such is the siution in La Paz - El Alto and in Cocabamba, were te water scarcity was

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aggrvated during fte extended drought at the end of the 1980s and the first two years of the 1990s.In these areas, there is a clear conflict between industry. agriculture and domestic coasuras, (inclu-ding recreational users). with respect to tic use of the limited water resource. Some of the highlywater-consuming industries in La Paz, working in the fields of textile, leaIber tanmng. yeast and beerproduction, do not seem to have tan any decisve measures to reduce water conumpon (althoughthe brewery reported that they went down from 15 m3/m3 to the still relatively high lWiel of 6 m31/m ofbeer). The water beig supplied by the public enterprise "SAMAPA" was rpored 'o cost 0.9 Bs/m3, aprce which does not seem to present a sufficiently slong incentive to save water.

The public wate enterprise in Cochabamba. SEMAPA is using a system of prgressive water tariffs(see Table 5: 1), but it is possible that the progression is not steep enough to effectively promote watersaving.

Table 5:1 Water taiffs in use by SEMAPA for industdal customers.

| Cmsomsption m'~ |0-10 13-50 | 51-100 101-150 121-250 251400

Taiffs, Bs | 21.73

Trifs Bsimi3 096 1.07 1.15 122 130

For otilization of the sewer, an additional charge of 65% is added.

An attractive feature of the watr management systm In Codcabamb is that all waste water, of urban

and industrial origin, that Is colleted in the centl part of the ity is anlzcd, after prper tatment,in an iTigation scheme. A remaining problem in Cochabamba is that large aeas in the westen andeaster parts of the city are not covered by the wat management scheme. This was repoted to bedue to unesolved confIlcts on jurisdiction over the areas in question with neighboring municipalities.A grwing problem in ihese zones without a regular, municipal water supply, as well as in citieswith deficient collective water supply systems. is the dliberate and unconled pumping of waterfrom the ground water table. Ibis practice, together with the commonly practced disposal of excreaand industrial wastes in underground septic chambers or in wells, will sooner or later result in bothquantitative and qualitative degradation of the restricted grou'd water resource.

There is still no general Inventory available regarding the groundwater resources iL lolivia However,as a result of an iemational aid project, several local studies h-ave been performed in the norenpart of Altiplano, in the srroundings of Oruro. in the valleys of Cochabamba and Tarija, and in thecities of Santa Cruz and Trnidad. Only the city of Santa Cruz is primarily supplied with water fromthe grundwater table, while the cities of Onrro and Codhabamba are partially relying upon supplyfrom the aquifs.

The public water enterpises in Cochabamba and Santa Cruz (SEMAPA and SAGUAPAC) usuallyextract ground water fom very deep vells (up to 300 m), where the ground water quaity still is satisfactory.

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C. Land degradation

Unlike the case in the mining sector, land degradation is generally a minor problem in relation to themanufacturin indhstry. Imparment of scenery or degradaion of the local environment and amenitisis mainly a rsult of improper sitng of industries or establishment of wast dumps in densely popula-ted areas. L.and degmadation due to erosion or transformaton of tie nanul drainage patterns, whichmay result In flooding and creation of permanent swamps, is mainly a resut of poor planning beforeconstcion of acces roads or other infatruture. Ite vcry extnsive ppe-line system for tansportof oil and gas. built and operated by YPFB. may be a potential cause for land degradation. However.no detailed information has been gathered on this issue. New pipe-line prjects will anyhow be subjectto thorough enviromental impact msessments, caried out acording to innatonal standards. Aspecial case of land degadaion, or rather river bank degadaton due to stoMe and gravel exttactionorom the river bed has been identfied in Cochabamba- Here, a municipality-owned asphalt plant has

extracted material from the bed and banks of the Chaquimaya stream, causing severe erosion of thebanks with nsks of land-slides and damage to nearby buildings. The situation bas resulted in an acuteconflict betwecn the local community and the municipality, which is now considering a resiting of theactivity.

D. Envtronmental poilution

1. Wastewater effluents

a. T I he main contaminants in mixed industrial effluens can easily be groupedin the following categories. In the overview, the conventional measurng pameters awe indicated asvel as the potential effects in the receiving rver:

CATEGORY OF CONTAMI- PARAMER P0IENTLAL ERFECTSNANT

Sspended solids S.S, Twbidity May desroy dte habits of ben-- orgamic Volaie S S. thic fian anacnbic scdimcni3- inorganic Non-volaile SS.

Dissolved inrganic substanc Electr. cductivity, May change the ionic composito(salts) T.S minus S5. of the waer

Acids and alki pH Toxic effects m extme cas

Heat Tempeaur Harmful to coldwa-adapted

Colored matrial Color May change the light diaste of

Nuuicnts Pwt, Ntot Canse eutrphication

Dissolved organic substances BODs COD Deplete the dissolved oxygen

Oil and grease Spec. atalysis Reduce eoxygenaion aestheticeffects

Toxic substances Bioassay, LC50 Harmfil to aquatic life

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In addition to the group parameters indicated above, a ccrtain mumber of specific chemical analyses arenormally caried out, depending on the ongin of the effluents and on the various alternative uses of thereceiving water. These may include specilic ions such as sodium, calcium, magnesium, chlonde. fluo-nde and boron (if the receiving water is used for imgation), vanous heavy metals and other toxicsubstances such as ammonium. cyanide and phenols (if the river waler is used as drinking war suP-ply. as livestock water and/or for aquaculre or fishing). In the laner case, the effluents are usuallyalso subject to microbiological acalyses and - if needed - to specific determination of substanceshaving a strong odor or taste.

The exact design of the analytical program to be conducted on an industrial effluent must, of course,be made with due regard to the Indusmial process and to the enviromental (quality) goals establishedfor the receiving water body. It Is always of the greates importance to take the effluent samplesduring periods of normal (or represenaive) producuion in the industinal plant and, at the same tume.carefully measure the volume flow of the effluent It is also imporant to know the acal productionlevel. This is necessary to be able to calculate the amounts of the various contminats being dis-charged. in kg/day and/or in kghon of produrtL The potential impact of the effluent on the receivingwater is best estimated on the basis of the total quantitative load per unit time, calculated for eachmajor (and relevant) type of contaminanL The quanitative load per unit product is used to comparethe technical and waste management standard of the investigated planm wth hat of oe plants havinga similar production or with plants using the *Best Available Technology" within the contry.

b. Water quality and effluent standas The Ministry of Urban Affairs and Housing in Bolivia issued,in 1990, a "Regulation of Dischbarges of Industria Wastes into Wat Bodies", which stipulates therequired water quality in 5 classes of receivnug water bodies as well as the madimum admissiblecocentarn ons of vanous contamants in industial effluents being discharged ito water bodies (seeTable 5:2). The legal status of this regulation is unclear, and it appears that no general classification ofBolivian rivers as to their pnncipal uses has still been made Even if the published values can be usedas general guidelines, it is perfinent to mnke a few comments:

- The enforcement of effluent limits and water quiy standards of this kind and the contol ofcompliance with the lmits requ a very lage momtoag effort to be rrd out by highlyqualified sampling staff and analytical Liboatoes (tbese may he authorized by the government).It is very questionable if the priorizaon of this system is the best use of limited resources. Amore efficint way of achieving an improved water quality in rivers and fulfillin the environ-mental goals that the govemnment (SENMA) has to establish for differe regions and river basinsof the country, would be to promote the choice of en ally suitable technology as well asa sound enviDromental management and shop-keeping in indusry. his goes hand in hand withpromotion of resoure-saving (low waste geneion) and teatmn of residual waste according tothe best envonmental practice.

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Table 5:2. Bolivian watr quality standards and industrial effluent limits (Reglamento sobre lanza-miento de desechos industriales en cumpos de agua, 1990). Example of water quality stan-dards for Class BK; waters destined to public water supply after conventional treatmentand to the preservation of flora and fauna and to drinking water for animals.

PARAMEIE EFFL WATER, CLASS BTemperataur C 40pH 4.5-10 5.5-9.5

Dissolved oxygen - 609G saL

MPNI100 mL 100.000 <10.000

Color UC 1.000 <100

Susp. solids mg/i 1.0' 1.50DOil and grease zngfl 20 1.0BOD5mgI 300 <10COD mg/n 500Asenic mgfl 1.0 0.05

Barium migl 10.0 2.0Boron mg/i 5.0 0.5Cadmium mg/I 1.0 0.2

Copper mg/ 5.0 2.0

Chromium (VI) mg/i 5.0 0.1Lead ng/I 2.0 0.1McuIy mg/ 0.05 0.01Selenium mg/I 0.5 0.05Cyanide mg/I 1.0 0.1

Phenols mg/ 0.1 0.005Detergerts mg/I 5.0 1.0

Total nitgen (NO3) mgA 100 60zinc mg/I 50 15

Manganese mg/i 10 2.0

Irn mgIl 10 2.0Calcium mg/l 700 400Magnesium Mg 50D 300Fluoride mg/I 2 .

Chloride mg/ 5000 700Sulpha Wl 8000 6001 Seileable solids

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- Effluent limits given as highest admissible concentation can easily be counter-preventive,because it will somctimes be easiest to comply with the limits by diluting the effluent with cleanwater. To open up for this possibility goes against the sound requment of reducing water con-sumption. Reducing water consumption in a plant by water recycling and dosure of systems isnormally the best way to reduce waste and to mke effluent teatment cheaper and more efficient.As pointed out above, It Is therefore recommended to express discharge limits as highest allow-able amounts of BOD5, COD5. suspended solids, etc. per day. Based on these quanttative limits,It is easy to calculate the highest theoretical concentation in the river water at low flow (duringthe dry season) and thereby assess whether or not the quality goals for the river are meL 1his wiualso reduce the need for frequent monitoring of the nver water quality.

- However. If the effluent concentration limits given should bc applied (together with te associ-ated mles) in a general way, also including discnarges to receiving rivers with very limited capa-city aow water flow), such as the rivers witin the Altiplano basin and rivers In the La Paz orCochabamba regions, it is evident that the numerical values for several parameters are far toohigh to provide any real protection to the systems that should be prtected.

- When it comes to quality standards for surface waters, it is extremdy difficult, If not impos-sible, to estabUsh generalzed lmits (for each class of water uses) at should be applied uniform-ly over the whole territory. Ihis is patcularly true in a country Bke Bolivia with such a hugevariability in geology, hydrology and biocoenoses. he natual backgrund levels of many para-meters most certainly vary by up to one magnitude between small mountain streams drainingareas with wide-spread minerzations and large, slow-flowing rivers in the plains. It is thereforeof paramount importance to produce reiable base data regarding the natural levels of the mostimportant parameters in uncontaminated parts of rivers in the main regions of the country. Basedon this knowledge, the environmental goals could be formulated as bighest allowable incrementin concentration (above the backgound level) for the important parameter rather than as ab-solute concentrAton limits. It appears rational to adopt a region-specific system when formulatingsuch environmental goals (n tenrs of maximum increment in on), because it may bejustified to allow a higher increment in a river belonging to the Amazon basin (provided this

crement does not interfere with any of the legitimae wat uses downsream) than in a riverwithin the closed Altiplano basn.

- At a closer look at the example given in Table 5:2 of quality standards for Cass B waters it isobvious that the numerical numbers given for sevral parameters do no guantee full protectionof aquatic flora and faumn It is also evident that aquatic communities living in cold mountainstreams are much more sensitive to various contaminants discharged by man than are com-mulnties e.g. in trpical rivers with a natural high sediment load. In most oth countries, it isgeneally accepted that the water quality limits neded to presere the aquatic fiora and fauna aremuch more stringent than the limits needed to ensure a safe drnking water for humans. Finally,there is a serious omission in the standards issued for irigation water, since sodium is not in-cluded. This Ion Is one of the most harmfil elements for soils, if it occurs in high concenationrelative to the concentration of calcium and magnesium.

c. Waste loads frnm Boivii There is an urgent need to improve the water resourcemanagement in Bolivia. This can be clearly inferred from the exremely high pollution load in thervers draining areas vith high density of population and industry. The thee biggest and most in-

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dustrialized cities, La Paz, Santa Cruz and-Cochabamba. are drained by the rivers Choqueyapu. Piraland Rocba. respectively. In all tese rivers, BOD5 values above 100 mgAl (and ocasionally exceeding200 mg/I) awe regularly recorded, at least during the dry season. Such BOD levels indicate a very highloading with organic wast. Fortnately, the affected rivers have a very turbulent flow, ensuring aneffcien: .reawation of the water. This rearoin counteracts the very high oxygen demand of the wasteload so tha the river watr seldom becomes anaerobic with pmducdon of bad smelling hydrogensulphide. Anyway, such high pollution load of rivers within populated areas are certainly not In com-pUance with any reasonable environmental goals.

Since industry and urban areas in most occasons are not segregated, industrial waste waters and urbansewage are mixed in the rivers, and therefore it is usually impossible to detrmnine to what extent theindusty is responsible for the existing niver pollution. The situation is even more complicated becaea great part of both domestic and indusial solid waste Is disposed of direciy into the rivers. How-ever. in various investigations it has been estimated that industry is responsible for between one thirdand one half of the total pollution load of nver Choqueyapu.

Table 5:3. Quantitative discharges of organic waste (measured as BOD) to rivers fmrn some In-dustries in Bolivia. All disdcarges given as Iglday.

TYPE OF INDUSTRY BOD5 COMMENTS

Brcwry (snall) 120 Individual ed. ucautca

Brewery (big) 1500 No u=aml

Yeast factory -1000 NO Reahat

!dk pmduct fctory 260 No treatuent

Vegetable oil facry 740 No tanaea

Distillery 76D 150 d1ye2r. lxL trearinent

sugar mill 1 6.000-45,000 -200 d/year. No troitment

Sugar mill 2 16000 -200 dlyear. No treatment

Tanmery 500 No tearment

Urban sewage, For cnparison190 000 inhab Santa Cmz- before teament 4800- aftr mtnnent 60D

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A more staightforward way of demonstraing the rle of industry as an important polluter of the nversis to give a number of examples of measured amounts of BOD5 being discharged fom the plants tothe nearby river (see Table 5:3). The examples given probably represent some of the worst cases in tecountry. The industrial branches shown in Table 5:3, together with slaughter houses, petroleum refi-nenes, chemical plants producing soap and detegents and texfile plants are the most polluting indus-tries in Bolivia, as far as organic poDution is concened. The wastewater effluents from some of theseindustnies contain, in addition, various other contaminants, e.g. chromium. sultides, biocides and dyesin tannery effluents, solvents and dyes ia texte effluents, persistent hydrocarbons and solvents inpetroleum efining effluents, and solvents, detergents and various chemical additives in soap anddetergent fwtry effluents. A more detailed account of the wastewa compostion and the envimn-mental management in the Bolivian industry is given in Appendix IV.1.

d. Wastewater treatment in Bolivia In spite of the examples given in the previous section, showinghigh pollution loads from some Bolivian indusuies, the geneal picture is far from being totally darkIn several cases. quite advanced environmental protection measures have been taken, including tecli-cally sophisticated wastewater teatment solutions.

An interesting feature is that within the same industrial branch, examples of very different levels ofenvironmental standard can be found. Whfle some companies do not perform any wastewa treaumentat al - or only a very prmitive tneatmemt - there are other companies In the same branch, which haveinstlled adequate treatment systems that appartly opeate at a satisfactory level. Ibis clearly showsthat there should not be any severe economic constraints to undertake an apprpriate wastewater treat-ment since the companies in the same branch having done so are still competitive. Based on suchknowledge, SENMA will have a good argument to fowe those companies laggin behind to upgradethe technological standard of their treamlent systems to the level vhich has been shown by oters inthe same branch to be feasible. As pointed out before, using this iumen. based on technologicalstandard. may be the most efficent way to achieve an overal envionmenta improvement

A few examples will ilsrt this poizL Fst, four breweries wae studied, and they havechosen four different soluiions for thcir wastwaters:

1. Lage bwwey with a production of 250 in3 beer/day. No treatment of the watwater, which isddy discharged to the neaby river, adding to Its very high poUution load. Ibe BOD5 con-cenmration of the effluent is 500-1000 mg/I.

2. Small brewery, producing 45 3 beerday. The wastewater is trated in a faidy primitive treat-ment planI, consisfig of two sedimentation basns (partly deficient) and one stabilizationlagoon. Ihe teated effluent, holding a BOD5 of >400 mg/l is discharged to a nver with multi-purpose use.

3. Medium-szed brewery aroducing about 100 m3 beedday. The plant has no wastewater treat-ment system, but the effluent is channeled direty tD an mirgation scheme rmn by a syndicateof farmers with whom the brewery has signed a long-term conacaa Tbus, the nutri contentof the eflue is utlizd and the are no direct discharges tony river.

4. Medium-sized brewery with producion of 140 m3 beer/day. This company has built a sopisti-cated wastewater treatment system, consing of lime flocculation folowed by a weE-designedprimary sedimentaion basin, activated sludge treatment with recycing of sludge, secondary

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sedicentation and two stabilizatioP lagoons in series. From this treatment system, there are nodischages to any nver. Ihe water which does not evaporatc from the lagoons is used forirrigation, mninly of gadens. All the sludge is taken care of. some of it is sold as fertilizer.

Second, within the leather tanning sector, seveal plants were investigated Four examples may begiven:

1. Medium-sized tannery. processing about 10 tlday of freh ides with relatively low watccnsumption. No wastewater teatment, except a very pimitive sediment tap. The effluents godirectly to the river. The lack of any effient protective measure was said to be due to lack ofspace, since the tannery is locat in a densely populated area

2. Large tannery (however. the exact production level Is unclear, since three difftrent figureswexc reported by diffecent managers). Eftluents from soaking go direcly to tme river, whileacid effluents from chromium tanning and alkaline sulfide liquors arm mixed (with probableformation of hydrogen sulfide) before they go to an aeration tank with short retention time andthen to a sedimentabon basin with deficient design. From here, effluents ar discharged to theriver. It was also reported that the solid waste disposal was out of control by the company(one of the biggest in Bolivia), but that the waste was probably dumped into (or close to) theriver. However, it was also reported that a new wastewater treatment system was und study,including some water xecycling and anaerobic lreatment of some prcess s=rams.

3. Medium-sized tnnery, prcessing 10 tld of fresh and salted hides. All effluents are treatd inan individual treatment pianL After segregation of acid and alkiie liquors, each stream isfirst teatd in two precipitation and s non basins in series (each one witha a volume of15 ro3), and then in two large stbilizaion lagoons in series. There is no direct effluent TO anynver, the wastewater either evapoates or percolates imo The ground I was reported that boththe sedimentaion basins and the lagoons are cleaned periodically and all sludges we beingdisposed of in a land filn Mime main ptoblems ame a possible overflow of the lagoons duringheavy rains and a possible cntamination of the ground water table by chromium However, nodata eXist to confirm this.

4. Small tannery, pocessing 4 tId of fresh and salted hides, and located in an urbanized areaThis company has recently invested US$ 100,000 in a simple, but quite ingenious teaentplanL One third of the alkaine sulphide liquors are rcycled, the remaining part goes to asedimentation tank, followed by a unit for catalytic oxidation with manganese and air. About50% of the acid liquors from chromium tanning are recycled and the remaining part is ratdwith lime to precipitate chromium hydroxide. After pretreatment, the two str are mixedand go to a flocculation unit where alum and a polyelectrolyte are added, then to a sedimenta-tion basin (12 m3) and thereafter to an eration basin with a retention time of 3 days. The finalefflue are dischwged to the municipal sewer, which conducts the combined wastewats to acollective tetment plant (a series of stabilization lagoons). from which [he effluents go to alarge irrigation sche. The incenive for building this advanced, individal treamt systemwas. first a municipal ordinance probibicng all industrid dischrges directly tD the river. andsecondly the application by the public water enterprise of a system of tadffs for the poUutionload to the collective sewer and teatment facility, which promoted consdable reductions ofthe discharges.

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The last cited example, which is from Cochabamba, clearly shows that it is possible to upgrade teccnviWWImItal management in the existing industry and the nver water quality in a city through acombination of individual and collective solutions, implemented In cooperation between the pxivateand the public sector. The municipal ordinance requres all industrial opeations in the regulated areato have sepe wasewater systems for sanitary wastes, rainwater and industr wastes. Each of the12 tanneries in central Cochabamba, which were the main targets of the ordnance, had to build an on-site treatment unit with primary and secondary treatmenL This process was oompleted for 6 tanneriesin the fist 6 months and for the other six in the next 6 months, according to SEMAPA Inspectomsfrom tfhis enterprise tale a sample at each tnnaery at a random time each week. If violatons of tbestipulated maximum discbarges (established on an individual basis) are discovered, SEMAPA workswith the company to resolve the problem. If repeated violations occr, the compamies have to pay finescalculated in relation to the amount of exceedanc of the given limits. This fine can be 8 times ormore higher than the usual monthly service charge fom SEMAPA. If a company does not pay thetlne, or does not correct its violauions, SEMAPA shuts off access to the sewer system and the compa-ny cannot continue operating.

Although this system is reported to work well in general, there still seems to be at least occasional"undetected" violations of the prohibition to discharge raw tannery effluents to river Rocha. One suchcase was observed by the study team in the beginning of February 1993. when a tannery within theregulated zone discharged 7 kghour of BODs and 53 kgthour of COD. Another problem is that thereare several tanneies - and many other industies - located oatside the cenhtal part of Cochabamba,covered with a complete sewer system The warwarer treatment system of those idust in the

usir of Cochabamba, has a very variable stnd, and many of these plants still contibute lagelyto the contamination of the main river Rocha. Fixing tis prbem will require resolving the jurisdic-tional reisputes between Cochabamba and neighboring local governments, as well as providing plan-ning, education and thnical solutions.

In the city of Santa Cruz, a collective wasewater treatment system was planned and implemented for agreat part of the idustry, pior to its instlation Most of the about 150 industries installed in theindustial est NE of the city dischage dthir industrial vastwaters to the treatment plant shoDW inFigure 5:2. This plant consists of two anarbic lagoons, ane facultaive lagoon and two polshinglagoons, altogether with a surface area of 11.8 hectar. A separate lagoon (0.35 ha) was built for thepurpose of teaing toxic waste to be ansported to tbe plant by road-tnker However. this unit iscurently not in operation. The Influent to the treatment faclity (1,500-2,500 m3lday) holds a BODslevel of 600-3,200 mg/l (mean value 1,600 mg/A), a COD value of 3,100 mgnl as an average, is rich inoil and grease (300 mg/l). based on data from 1989. Mhe efficiency of the treatmnent system in e-ducing BOD has always been superior of 95%. resulting In BOD, values in the efuent to the river of17-24 mg/l. The main problmcs encountered in this oollective tetment faclity Is the obstxcion ofthe equipment by grease and the inaease in chromium levels in the two fis lagoons, after the instal-lation, in 1990, of a tannery in the industrial estate. The increasing cbmmium levels may causedamage to the miaoganms m the lagoons. So far. none of the industies atacbed to the treatmentsystem Pctce an! pretreatment of tleir effluents. However, the observed problems may foreSAGUAPAC (in charge of the facilty) to require such pntreatment by industries producing hamflwastes.

As pointed out earlier, thee exist in Santa Cruz a great number of industries, some of them very lage,which have no - or only very rudimentary - wastewater teatment These contne to pollue the va-rious steam as well as the main nver in the river Pai basin Since the conflicts with alternative

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water uses are obvious. and since massive fish kills have been observed duing the sugar prductioncampaigns, thcre is an urgent need to promote the installation of adequate wastewater treatment (eitherindividual or. in some cases. collective solutions) in these industies.

However. the most alaming deficiencies in industrial wastewater tetment are those encomunted inthe industries located in the northem parts of La Paz. Most of these, quite large plants have no waste-water treament whatsoever. Several satdies have contemplated various solutions to the problem. Thereare at least three arguments in favor of a solution Includling the consnixtlon of a collective keatmentfacility for all the industial wastwaters and urban sewage beng anspored by River Choqueyapu toa place just downsueam of the city:

(1) Using the river as the main collector, and at the same ime as a very efficient unatural" oxida-tion ditch means tha great deal of the degradation of the organic waste has aleady takcen placewhen the wastewater arrives at the treatment plant

(2) There is very limited space inside the city to build individual, on-site treatment systms.

(3) A collective tnent for urban and industrial waste might be the cheapest overall solution.provided an unconventional treatmet system is designed focung on the elimination of patho-genic microrganisms and paasites so that the effluents will be safe for use in inigalioo of crops.This solution will, however, also require the impl ion of a water-saving program in allmdusties (e.g. promoted by a sharp Incease in pdces for indus wate) and pretreatment ofindustrial wastewaters in order to reduce or eliminate heavy metals and other hazardous sub-stances.

What argues against a collective treatment facility downstam La Paz Is, of corse, the nuisancecaused by the transportation of all wastewaters in an open channel though the whole city. Ihe con-stant rnaeaion of the vastewater during Its transport In the very turbule River Cboqueyapn is aclear advantage. Tn spite of the extremely high oxygen demand of the river water, the dissolved oxy-gen level never falls below zero and so does ot form bad-smelling ydren suiphide (except inlimited sections where the river flows in a tunnel). Furth studies are needed to find the ultimate,most convenient solution of this acue problem.

Finally. a few comments to the wstwaer treatment issues in the petroleumn indtstry. The two majorpetroleum refinenes, Palmasola and Vane Hermoso, have instaled relatively complex wastewaterIeatment facilities. Ihe wastewater from Palmasola (690 m3 lday) goes first to an equalization basinand then to a flotation unit for oil separation. Ibe searated oil is std partly in a tank and partly intwo large oil sludge lagoons, from where some 30% of the oil is repoted to be recycled back to therefinery. Efforts are being made to increase the amount of recycled oiL After the oil sepmaration, ftestll oil-conaing wastewater is teated in two stabiion lagoos vnth a retenion tme of 1-2weeks. From here, the effluent goes to a smanl ditch wbich empties inlo Rio GCande. A regiuar, week-ly effluent monitoring was said to be undertak, but Informain on was received only from a grabsample of the outgoing effluenL At the time of sampling the discharge was about 140 kg/day of CODand about 50 kg/day of oil and gease. Part of these conaminan will have been degraded before tewastew:ter reaches the river.

At the ValUe Hermoso refinery, two paralel treatment systems, working alternatively, are instaledFrom a prmary sedimentation and oil separation basin oi is recovered a-ad recyded to the refinery,

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either direcly or after steam sepoa of sludge if necessary. Ihe wastewater (with a reported flowof 410 m3 lday) then goes to a regular flotation unit for fiuther oil separation and from there to twostabilization lagoons containing a dense vegetation of water hyacinths. Ihe waler hyacinths were usedto absorb heavy metals and they were removed once a year and dumped on a land fill. Tie effluentswere reponted to be used in an expeimental irrigaion scheme. Accoding to some monitoring resultsrepored, the concetration of hydrocarbons in the effluents is only 5-7 mg/I. However, at a later checkmade by te study team in a canal leading from the refiney to one of the tnbutaries of River Rocha,the following amounts of contaminants were recordet Flow: 2000 m3%ay, BOD,: 550 kg/d; COD:1.600 kgld; volatile (orgamc) solids: 800 kgld. It is not clear if the total amount of organic materialdetermined in this sample originates from the refinwry, but it appears that there is a discharge to theriver system. lt should be remembered that their results were based on a single grab sample, andtherefore, not necessarily representative for the average situation.

Ihe wastewater treatment practiced at the oil production sites has not been assessed, because no oilwell could be visited due to weat conditions. It was, however, reported at no special treatment isdone of the drilling mud. which may contain vatious chemical additives. As a general rule, it is impor-tant to avoid any direct discharge of ground water from the formation to nearby river This formationwater is usually extremely saline and may contain high concentrations of hydrocarbons as wel asdrilling mud chemicals. A gas production site was visited where the water, with a rported sodiumchloride content of 15,000 mg/I, was conducted to a 1 m deep lagoon without any outleL Ihus, thewater evaporated and/or percola into the ground.

2. Solid waste

As discussed in Part 3, chapter V, although there is a regulation on solid waste management, imple-mentation of its requiments is very deficient. The responsible municipal units have usually not beenable to establish a comprhensive and systematic system of household and urban waste collection,tansport and disposal, incuding plans or strategies to avoid or reuse/recycle the produced wastematerial. These instittiona/administrative failings wiUl be illustted in the following descrptions ofthe present waste management policies in the cities of Cochabambs and El Alto.

In CochaSbanba, the municipal "Deparamento para Limpieza y Recoleccion de Residuos Solidosm isrsponsible for garbage collection and final disposal at a dumping site about 8 km outside the city.There is no sorting or separaou of the was, neiter at the collecon nor at the dump, except thatchemical wastes from tanneries are deposited at a difernt site. Even medical wastes are not segre-gated but considered as part of general solid waste materal. Ihe only form of recling that occus, isdone by some poor people livg close to the disposal site and collectig garbage for varous uses. Thecity does not seem to be awae of any risks or problems for human health that could ais from thissite. The city collects garbage every day from 55 central collectton points as well as from the steets,houses, markets, schools and frm some iduste (including hospitals and clnics). The garbagetrucks often lack technical service and maintenance and there is not enough staff to cope with thegrowing waste amount. Tbe city hzs a tractor to compact the waste piles, which are daily covered by a15 cm thick soil layer. Of the total of 170 tons of daily disposed solid waste, about 10-20 tons arecollected by private services that pick-up wastes fmm industries (lie tanneries, but also hotels), whichdo not have a special pick-up arangement with municipality. It is obvious that the preset disposalsystem does not address the poSsibility of waste treatment designed to reuse or recycle

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valuable raw materials nor does it ensure a long-term and enviromentally safe disposal of all the solidwastes prduced by households, commerce and industry.

Ihe sitation regarding waste disposal in El Alto looks quite similar. Here, garbage from the [own iscollected twice a week by presenty 9 pnvate carriers ("micro empresas") and aasported to one of thetwo open disposal sites. There is no waste classification or sepamtion between domestic, commercialand industijal waste, so that the final deposit Is composed of a mixtur of various types of materials.Although no distinction Is mad between household and Industrial solid waste, the "Deprtnamento deSaneanuento Urbano". at Mhe municipality of El Alto, has established different rates for their collectionand disposal. Besides poor people living in the suonading of the disposal sites, the municipality hasorganized some knd of recollectioo, which means that about 20 different groups, cach with about 20individuals, are charged with the sorting of various valuable materials (e.g. glass, metals, plastic,bones) from the 70 tons of daily disposed domestic waste. Again, tere are no particular measures orprecautions taken against the formation and infiltaion or toxic components into soil, surface andgroundwater, or the development of explosive gas mixtures. However, it has to be mentioned, that athird disposal site for solids wastes is studied with the help of the "Fondo Nacional del DesarolloRegional" (FNDR) and with international assistance (Japan. Germany), called "Servicios de barrio.recolecciones y transporte y disposicion final de residuos solidos". including also an environmentalimpact assessmenL

From these observations. the following preliminary conclusions may be drawn with regard to a rapidand effective improvement of the present waste disposal system in Bolivia:

3 increasing public awareness by information on and provision of a systematic collection net-work. e.g. containers designed to separate valuable raw matera from the gatbage

- central egistaton (preferably at SENMA) of the type. property, site and amount of solidwastes producd in the country (inventoy)

* reporting and coordination of all activities (industial, commercial or domestic) generating,collecting, tansporting. treating (reuse) or disposn hazardous waste mateial, in order tobuild up safe waste management instruments on a long-term base (tatment/disposa strategie,licensing)

a careful planning, design and realization of all new disposal sites for both domestic and indus-trial residues, according to international standards

* priority listing of old waste disposal sites (wild Saumps") reiring urgent remedial measures

e support of the development of recycing teChtnolo'Y to recovcr valuablc raw material andenergy from solid waste

* creation of awarding systems and incentives for good householdlng practices with regard tolow-waste production process

As an Immediate measure to reduce the risk of any long-term contamination of drinkng water re-sources by leaching cbemicals from uncontrolled waste dumps, the careless disposal of noxious resi-duals from various industrial precesses together with rather harmless and inert domestic waste mate-

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rials has to be stopped. Hazardous waste shoud be disposed of only at specifically designed andcontinuously monitored land-fill sites, with no contact between the percolate and groundwater.

3. Hazardous vaste

In Bolivia. there is no clear definition yet for this ype of waste. but it usually includes all residualmatezial which could be noxious, environmentally hazardous, explosive, inflammable or cause infec-tious diseases. due its charactmistics or volume. For these substances. It is highly recom-mendabldmandatory to keep the whole tanst chain fom the ongin until final disposal,un astrict surveillance; this is sometmes referred to as "cradle-to-grave management.-

Hazardous wastes may be liquid or solid and include the following examples:

- oil waste- solvent waste- paint and varnish waste- glue waste- strong acids or alkalies- cadmium contminated waste- mey conaminated waste-waste rich in antimony, arenic, barium, berylum, lead. cobalt, copper, chromium. nickel,

selenium, silver, thalium, tin, vanadium and zinc- cyanide containing waste- PCB-containing waste- pesticides coaining waste- waste from laboratories

These special waste materials shoald in any case be collected, e-)treated and disposed separately, Uorder to ensure technical safeguarding. elimnation and long-term controL In indusalized counies, itis obligatory by law that the one producing hazardous waste has the responsibility for handing ndsafe disposal. All pdvate firms engaged in the management of spcial (industrial) waste havc to get alicense fist fm the cmepndng waste regulation aInthity (municipality).

At present. no waste classification system ists In Bolivia For many m ing industres itseems to be common practice to get rid of thir hazardous wastes by simply charging the municipal orprvate carriers, without any fiurter care about their final fate and disposal. If the induswy will rEmainwithout any clear guideines, which defne the hazard poentia of their wast and how to Drse valu-ables or to stabilizelneutalize and dispo It safety, then the curent practice of unntrolled wastedisposa wili continue. creating Innumerable sources of a long-tern chemical nmination of theenvronmeni It is indicative of the weakness of the exisatng knowledge about the ral dimensions ofthe countys waste dsps. that even SENMA has no information whatoever concerning the dif-ferent categories. amount and final destination of hazardou redues produced.

It has to be mentioned here, thal some of the visited actoies seemed tD havc succeeded in doingsome kind of pioneer work with regard to a careful householding and management of energy andmaterials (see Appendix IV.ll).

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The collection and dismantlement of old lead batteries and the consequent use of a11 reusable leadparts to build-up aws ones, is a good example to demonstrate how to save non-renewable resources, toavoid the emergence of hazadous waste and to apply cheap and easily available raw materials, all atthe same time. Another example is the collection of spent lubricant oils and the subsequent reforma-tion of this material to produce hydraulic oils.

4. Air pollution

Tbe mnufactuing industry in BoUvia is not a big contributor to air pollution, with one major excep-tion, the cement industry. In addition, there are some minor sources, mainly of a local concem. Emis-sions of the classical industial air pollutants, sulphur dioxide (SO). nitrogen oxides (NOQ) and otheroxidants ane fairly Insignificant on a quantitative basis. Besides the small volume of the Bolivianindustry, which results in small total emissions of NO, the absence of SO2 emissions is a result of fteincreasing use of natural gas for heating. steam production, etc. Ihe limited quantity of fuel oil still inuse is furemor practically fre from sulphur.

The cement plants in Bolivia have, for a long time. emitted huge amounts of dust One of the twoplants studied, "SOBOCE' in Viacha, did not install any protective measure until 1984. Prior to thisyear. the annuial dust emissions might have been over 20,000 tons. After the installation of an electro-static precipitator, the production has increased, and the present emission seems to be in the range of9.000-10,000 tonnyear. The cement plant in Cochatamba, "COBOCE", opeated during 17 yearswithout any dust emission control system. After the installation, in 1989. of a baghouse filter, theemissions were reported to be I t/hour, coresponding to about 7.000 tomdyear. The above indicatedrmission figures are uncetain, however, since no monitoring is carried out.

It should, of course, be an absolute requirement that a cement plant shald be equipped with an effl-cicnt dust cmission contrl system. Whis is also an obvious means of raw material saving. Ihe envron-menta impact of large, silicacontaining dust emissions fmn a 50 m stack is not only local, butcreates regional niwsance for the affected population (disturbance of respiatoy orga, accumulationof dirt) and inteferes with agricultural activities

'COBOCE7 is currently increasing its pnrducuion capacity fom 300 tld to 1,000 t/d and reported thatt-hey will also expand themission control sytm However, no envnntl impact amenthas been camed out to support the expansion project.

Other industries causig atmospheric pollution are those tting malodorous substaces, e.g. tanneries(hydrogen sulfide and other bad smelling substances),sugar mills, distilleries, edible oil faacorisslaughter houses and a plant producing bone-flour. Mast of these emissions are merely causing nui-sance in the close surundings of the industrial installations. In some cases, particularly when theindustries are located cose to residental awas, the problem has been considered as serdous. Ibis wasthc case in Cochbamba. where the concentration of tanneries in the suthem pat of the central citycaused such a degree of disturbance, thal the municipality deided to take resolute steps to remedy thesituaiion (see above).

Another case In Codhbamba, where a severe conflict has arisen between industry and the local popu-lation is related to the asphalt plant "Chaquinaya", which is owned by the municipality. Ihe air pollu-tion (dust and noxious gases containing polyaromatic hydrocarbons) in the surroundings has resulted in

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strong protess from the local population, and the municipality is now considering a zesiting of theplanL

The petroleum refineies ane emitting fairly high amoun of hydrocarbons to the atmosphere, but thetotal quantites are poorly known. In addition, the rfinery in VaUe Hermoso emits various solvents(firfural - 27 litersld; methylethylketone - I banreld; and toluene - 1 barrelld). TIose emissions pro-bably only have a local impact within the industrial area.

It may also be pertent to mention that the air polution caused by petroleum products, e.g. gasoline,is kept at a low level due to the excellent quality of the crude produced in the country and to theprocess used in the refineries (in particular in Palmasola). In the lattr refinery, no tetraethyl-ead isadded to the car gasoline, which in stead holds high levels of benzene. The refinery in Valle Hermosoadds 0.3 cm3/gallon of tetraethyl-lead to regular gasoline, and 1.3 cm'Iga:lon to the premium gasoine.Ihe emission of lead by car exhausts In urbn areas, particelarly in Santa Cruz, is thWeore insignifi-canL Since a large part of the domestically used diesel must be imported, and since this often holds alow quality, the urban air pollution caused by buses and trucks remains a considerable problem.

Extena industrial noise does not seem to be a major problem in Bolina, although some sources maycause local nuisance, e.g. cement and glass factories, oil refneries, textile plants. This problem isaggravated by the Improper siting of many industries within residential areas, but the number of com-plaints from neighbos seems to be low.

5. Groundwater contamination

Generally speaking, the degree of groundwater contaminon In Bolivia Is poorly known, because ofthe limited amount of investigations regarding the contents of iuusta and other contaminants ingoundwater samples. As a result of an internaonal aid prqect, a data bankc on the mineral composi-tIon of groundwater in the Cochabamba and some other regions has been estabhlish at the GEOBOLoffice In Cochabamba. However. conenations of organic mateil (COD, color. oil), bacta adinorganic comintant (ammona, chromium, other metals) are normally not included in the data sets.It can therefore only be speculated that tere is at least a consderable risk of groundwater conamina-ton in areas where industrial wasewats are disposed of io underound cbambers and wens, orinto stabilization lagoons built on permeable ground, where infiltration occurs. Ibis kind of wastewaterdisposal is quite common in the cties of Santa Cruz (outside the industrial estate), Cochabamba and ElAlw.

6. Potential for disasters

Among the vaious industries surveyed, the bigger units involved in high-risk operatons, an havesafety planning and emergency organizations of a high standard. Ihe explosive factxy FANXA",located in the industial estae of Cochabamba, can be cited as an example of excellent emergency

. Ewac unit operation is canied out in a separate building, surrunded by high walls maeof stone and earth The whole plant is equpped with potection against lighting and buildings wherehigh-risk operations are camed out have floors protected against static electricity. Other examples ofgood emergency planning are YPFB's petroleum refineries, where all tanks are equipped with safetywalls made of eartnh Ihere is also a sophisticad alarm system for accidental spills and a wdll-orga-

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nized fire protecon brigade. A similar high standard emergency set-up was obserV iu the edible oilindusty, where the use of large amiunts of hexane in the extaction process presents parficular risks.

In smaller industries, the use and stoage of high-risk ceicals and/or gases was quite often madewithout any specal safety precautions: no special spill collction systems, no sepa storage for themost hazardous chemicals, and no appropnate emergency orgaion or taining of the staff In caseof fiLre or explosion, even the smaller plants, located in densely popultd areas might cause consi-derale damage in the surroundings. It Is therefore omme hat the competnt auity shouldconduct regular checks of the emergency organzation and fire protection equipment in all industiesbelonging to the high-risk category.

IV. OCCUPATIONAL HEALTH AND SAFETY

A. General aspects

As is the case in the mining sector, the working enviroment within Bolivia's indusal sector showsgreat variabons from satisactory to unacceptable. In the bigger companies and in the modem plants,which usually have adopted a sophisticated process technology with a high degree of automatic pro-cess control, the working environment has a "built-in" high standar Ihc managers of these compa-nies, using imported process technology, in general also show a satisfactory awareness of problemsrelated to occupational health and safety. The smaller enterprises, and in particuar the older plants, onthe other hand, exhibit varioas deficiencies in thc worldng enviomeaL

Among the 36 different workplaces surveyed, almost one third had a sa_tsfac=ry woring envin-ment, with only minor deficiencies. Another tbird of the plants visited (13) had a fairy acceptableworking enviromerL In this group, there are still many issues wich n:main to be solved. However,the problems seem to be manageable. There was a certain knowledge and awaeness in respect ofworking environment questions and a number of measures had been taken

A mmnor goup comprisng 7 workJplaces had a poor workng envirment The general awaeness wasvery low and very little had been done in order to protect the wmrs from the isks i t workHigh noise levels, a general disorder and machinery withot safety protection were common in theseworkplaces. However, even If the conditions in these places were alarming, It woud not be impossibleto change the situation. A lack of awareness seemed to be the main problem, more than a shortge ofresources and possibilities.

Finally, a group of 5 companies exhibited a totally unacceptable workng environment The deficien-cies were so fiundmental and grave that it is hard to say how imrovements coudd be made withoutchanging the whole prduction process, machiny, premises, etc

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B. Workling accdents

In many companies the general imprsion is that faors at can contribute to accidents awe verycommon: genel disorder lack of safety equipment. slippery or greasy floors, dsks for stumbling, lackof banists. bad lighting conditions, etc. In spitc of this her are "few or no working accident"accarding to the company managemenL

OCly a few companies within the lndustial sector seem to put on record the working accident occur-ring. Ibis lack of recording is common although the companies are obliged to report over workingacidents to the "Mhnisterio de Trabajo y Desarollo Laboral" every third monthL Only a few companieshave been able to demonstrate that they respect these regulations. For obvious reasons the informaonprovided be the "Ministrio de Trabajo' or the "Caja Nacional de Salud" (CNS) is very incomplete.However, the petoleum industry (refineries) and a few othe companies stand out as good examplesregarding the reportng of accidents and the keeping of records and statistics.

C Chemical hazards

In many workplaces, the workers are exposed to chemicals of diferent kinds, such as:- chromium compounds and other chemicals in tannenes- a2senlc, antimony and sulphur gases in smelters- lead in battery production- solvents in the graphics industry- dust in cement producton- PVC, acrylate and styen in the plastic industry- berzene and toluene in refineries- formaUln in chicken farming and ia foundies- tensides in detergent producdon- asbestos in the production of roofing tiles

A recent study by INSO at the Vinto smeter ponts out that, in spite of the ongoing Imprvments,too high contents of arsenic. antimony and sphur gases occur in certain pakts of the plant and tathigh contes of arsenic and antimony appear in the mine and blood of some of the wors.

Already in 1979 it was esblished by INSO that more than 60% of the workers at a minor smelterhad high contents of lead in the blood. More ta a decde later, as repmted by CNS in 1990. 47% ofthe investigated workers (45 persons) still presented values that indicated a risk: of lead intoxication.INSO is active in contolling the working environment in refineries and some other critical industries.Unforunately it is done only as a service to be paid for and then, conseently, does not Inlude theless serlous but more polutng industries.

In some indusrie with an internal polluted atmosphere the exposed workers use respiratory protectiveequipment ilis is of course graifying even If, in many cases, tere may be reason to doubt that theequipment is maintined in a saisfactory manner. In other cases the workers do not use respiratoyprotective equipment even if there are very good reasons to beLieve that they shouldL

Lbeling, insuctions for use and safety instructions regading cheuicals being used, are often defi-cienL

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D. Noise, lHghdng and ergonomles

Noise is a very common problem in the industrial sector in Bolivia. Accadiag to INSO. more thanone half of the total work force are exposed to exorbitant levels of noise, and 40% of the workforce Issaid to have impaired hearing. The frequency of workers using hearing protetctrs is nevertheless lowand very few measures are taken to decrease fte high noise level.

Lighting is often a neglecced area. A majorty of the waorplaces visited had unsatisfactor lighting.What is often not remembered is that a certain amount of light may be sufficient for "doing the jobWbut still insufficient for the avoidance of accidents. In inost industries, there are many heavy jobs,difficult work postures and inticate work movements that create risks for over-load and accidents.

Less firquent in the Bolivian industry are the short-cycle, monotonous, frequently machine-controlledjobs which are so common in the highly industriaized world. Such jobs cause high frequencies ofstrain injuries and other muscular or skeletal diseases.

E. Possibibties for Improvement

One of the most important tasks is to raise the managemenrs awareness about the benefits of a soundworking environment. and to let this awareness penetrate tbrough the whole wokforce of the com-pany. Therefore, the first need is educaion and tfaining.

Work Injury prevention is not just a duty-, it is a kind of planning that often pays off even economi-cally. A better woring enviromment means fewer wrxk injuries and less sickness absenc. It is a goodaffair for the peson involved, for his employer and for the society in general. The base is a wellfunctioning health monitoring and recording systm. Possibly some type of incentive should be estab-lished in order to convince employers, as wel as employees, about the need br suc measres

Ihe problem of chemicals in the working envirnment has to be solved by means of technical andorganizational measures, such as the substitution of a hazardous process or substance with a lesshazaros, encapsulation and exWaMcinL In the Sho term, however, adequate measurs of this kindare not always possible. Employees wID at least tempoarily have to wear safety equipment in the formof breathing protets, eye shields, protecve clothing and gloves.

The shor-term, most efficient way of rapidly improving the occupatonal health situation n the Boli-vian working life, is probably withmi the sector of hearing potction The present Situation of wide-Spread indifference is most tragic, since even restricted measums could improve the situation appre-ciably. not to mention such a simple thing as wearing hearing protectos. It should be the responsi-bilitY of the employer not only to supply these devices but also to enforce their use.

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V. SOCIAL IMPACIS

The llndustiralzation pocess in Bolivia has developed gradually, albeit slowly. since the 1950s, whenmssive migaios to the major cities began. Up to hat tlme, mining and agricultre were the totallydominmn sectors within the Bolivian economy. However, this situation began changing due to factorssuch as low agdrcultul production, changes in traditional ownership system conceming land, thecoDapse of the internaional tin marlet with the subsequcnt dosure of mis, and the lack of industrialdevelopment which could integrte the many unemployed workers in the countryside. Ihe manuifac-tureg industry In Bolivia Is still a relatively small sector within the global economy, with a conse-quently restricted overal social Impact; however, Its social impacts have been increasing. partilarlyas they are linked with broader urban social problems.

Rapid urbanizaoion and excessive growth of the capital are two outstanding features of many coniem-porary Lain American societies. The development of La Paz-El Alto in Bolivia is a typical example of1his phenomenon. On the other band, Bolivia contrasts with oth Lafin Amcrican counties in thatindustry developed out of the already existing cheap and abundant workforce, rather than attrctingwokers from other countries.

El Alto can be charcterized as a "boom-town" because of its rapid growth The migration to this cityesented a desperate flghL from unemployment and misery in the countyside, rather than a search

for wor in existi industries. Within a few years after the massive migrations began. El Alto becamea real city In terms of Its size, even though it has only minimal infrsuctue and sfill lacks basicservices, such as water and sewage systems.

The large influx of people to La Paz-El Alto has greatly exacerbated problems of unemployment andsub-employment This situation has resulted in a rapid increase in informal sector activities. Heavycrime is, however, not yet a major concern The very inad te education level of tais poulationdoes not permit them to seek qualified work On the contrary, the abundanc of unskilled laborers,including men, women and children, has brought down the income of the urban poor. Thus, wages arevery low and work conditions extremly deficenL

A substail number of the bigger and thriving companies In Bolivia exhibit a satisfactoy awarenessof problems related to occupational health and safety; they have adopted modem technology, safeequipment, and aining practices to prevent accidents and educate their workes about potential risksMeanwhile, In many otber companies, ignorance and negligence is a major reason for occupationalillness and accidnts. Major occupational hazards imclude: nappropiate handling of chemicals; indoorair pollution (and the lack of respiratory protection); bad lighting conditions; noise; and woringdouble shifts (to eamn more money).

Many manufauing industry activities also pose hazads to the environment and public health Wihfew exceptions, thre is no special segrgation and treatment of industria or household wastewa.,nor are there adeque systems for solid waste mnagement and disposal. Since most new industrialvnur ll presumaly locate to existing in=ustral centrs in urban areas, it is urgent to addressexistng problems with Infrastructure and the related soci services in cities such as Cochabamba. ElAlto, la Paz, Onzo and Santa Cruz Also. there is a need for imprvements in occupational health andsafety, including bettr education and training of the idustial workforce regarding this issue.

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VL REGIONAL IMPACTS

A. La Paz (Choqueyapu Basin)

The main river draning the valley of La Paz is River Choqueyapu with its two main tributaries RiverOrkojahuira and River Irpavi. River Choqueyapu later joins River Bopi, that flows into River AltoBeni, forming a part of the Amazon Basin. The headwaters of these streams arc the melting waterfrom the glaciers on the high peaks (e.g. Mount Chacaltaya) in the Eastern Cordillera. River Cho-queyapu is flowing from NW to SE through the whole city of La Paz and the two above mentionedtributaries are joining the main rivcr in the center of La Paz. The average flow of River Choqueyapu isrelatively low'. during a two-year investigation, in 1976-78, it was measured at 1.3 m3ls at the entranceto the city. and at 65 m3ls at a point 20 km further downsnm (Puente Lipari). During the dry sea-son, the water of River Choqueyapu consists almost exclusively of wastewata.

Several investigations of the pollution of River Choqaeyapu have been carried out over the yeams(Most recently, the municipallty of La Paz Is negotating with the Japanese govermment regarding apossible project to help clean and preserve the Choqueyapu rivcr.) The main results of tbree systematicstudies are summarized in Table 5:4. Mhe fir study was conducted over a 24-month peiod in 1976-78 by the Institute of Sanitary Engineering at the Universidad Mayor de San Andres (UMSA). Iheresults from this study are mainly presented as mean values for the whole study penod. The secondmoning campaign was conducted in 1987 by Espinoza, Institute of Chemistry, UMSA, and the lastone, in '988-1990. by Franken and Sivila, Institute of Ecology, UMSk The table clearly shows thatthe river, which is fairly clean when it enters the city (Achachicala). becomes heavily poluted beforeit leaves the urbanized area (Aranjuez). Puente Lipari is located 20 km downsteam of Achachicalaand Mecapaca some further 10 km downseam. It is also shown in the table that the heavy pollutionof the river is not a recent phenomean but has persist for at least 16 yeas

By calculating the mass transport of arganic waste in the river. it can be seen that the tanspo isabout tbe same in the center of La Paz as at Puente Lipari (110 tld of COD and 50 tfd of BODE). Ibismay be explained by the existence of additional pollution sources in the south-eastern outskits of thecity. The self-purification capacity of the river must be cDnsidierd as fairly high, since the concentra-tion of dissolved oxygen in the water never falls to very low values, which is a consequence of thevery high reaemtion rate of the extemely tuibdent river (having a fall height of 680 meters betweenAclhichacaia and Puente Upari).

The extremely high loading with organic waste can be attributed to the dishges of both unteatedindustrial wasrewater and domestic sewage, as weU as to disposal of solid wastes of both industrialand urban origin. It is almost impossible to detrmine to what extent the industial discharges areresponsible for the precaious state of the nver. The only somewhat positive aspect is that the contami-nation with heavy metas is relatively low (arsenic - 20 ug/l; coppcer - 50 ugll; and zinc - 360 ughl ashighest values recorded). On the other hand, the chromium concention (up to 300 ug/l) is high,which possibly is a result of the unteated discharges from the taneies in the city. Furthermore, therivcr water at Puente Lipan holds on average 7x105 fecal coliforms per 100 ml.

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Table 5:4. The water quality of River Ckoqueyapu at different sites within and downstrm of La Pazcity. Data are given for three time periods.

Sim YEAR Ss BOD, COD NH. PO, Cr Zn_____ mg/l mg/l _ mg/I mg/l mg/I -gf pg/I

Adia- 76-78 750 3.6 24 - - 13 -

chicala

Acha- 87 49-19000 0 16-20 0.13- 0.06- 0-130 190-Chicala 095 0.17 220

Acha- 8-90 40->500 0-2 2-20 0-024 0-0.3 - 0-130chicala _____

Puente Ejer- 76-78 1200 250 560 _ - 39 -

Aranjucz 76-78 970-17000 15-240 72-550 - - 1-170 -

Aranjuez 87 2300-5000 39-380 110-540 6.9-29 1.3- 3-280 40-1103.6

Aznjuez 88-90 >>500 160-260 210400 7.8-28 1.6- - 10-2607.5__ _

Puente 76-78 4000 76 210 - - 12 -

Lipari _ _ __ _

Puente 87 2500-5600 40-200 80-240 4.7-27 0.5- 0-30 10-90Lipari 4.9

Puente 88-90 >>500 75-100 90-230 7-13 0.2- 0-300 10-360Lpari 2.6

Meapa 88-90 >>500 4546 81-170 11-16 0.2- - 0-1902.0

Take as a whole, It must be considered as totaly unacceptable at the combined unteed wasfrom fte biggest city in the country should contnue to pollute the lower La Paz valley. crating sevrconflicts with the agricultual and other activities in this zone.

B. El Alto (Altiplano Basin)

Part of the city of El Alto belongs to the Amazon Basin, but the western part of the city are drainedby Rio Scco, wbich Is part of the Closed Basin or Altiplano Basin. Rio Sewo flows to River Catazi,which is finally emping into Lake Titicaca, partly as an undergound stream.

Municipal water supply and sewerage systems in El Alto are in a very prumitive se; in large parts ofthe city these services are non-existing. As pointed out ealier, the instrial este in El Alto is not

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equipped with any of the basic services (water supply, sewer), necessary for this kind of development.As a result, the wastewaters from practically all the industries installed in El Alto are discharged in atotally unoatrolled manner to the ground or to ditches and streams as well as directly to Rio Seco.The largest part of the waste eventually ends up in Rio Seco and is then rnasprted - during the rainyseason - to the very sensitive Lake Tlticaca Basin.

The environmenl situation in this area is, thus, extremly precarious. It has been reported, however.that a comprehensive study is in progress with the aim of designing a sewerage system for El Alto.including adequate waste treatment facilities. It can only be recommended that this study be urgentlyaccomplished and that necessary finds be made available to start the rehabilitation work in El Altowithout delay.

C Oruro (Lake Poopo Basin)

The city of Omro is situated in the wautshed draining into Lake Poopo, which is an extremely sensi-tive hydrological region. The environmental impact in this region is totally dominnted by the miningindustry. and to some degree by the smelting industry located within the city as weD as in its sur-roundings. For details on the impacts by the mining industry, the rade Is referred to Part 4, chapterVLC. and Appendix IV.9.

Besides the mining industry, the most severe envirnmental impact in this region is caused by theprimary smelters Vinto, EMO and Fundici6n Pero. The emissions to the atmosphere of sulfur dioxideas wel as dust, conaining arsenic and lead, have been very large in te past (several thousands oftons per year of sulfir dioxide, SO2, and about 250 tons per year of arsenic), causing health hazards tDthe inhabitants of the city and severe contamination of soils. Today, these emissions are being reduced,partly due to an ambitious rehabilitation program being iLmplemented at the Vim smelter, but mninlyas a result of the decing production in the smelters. The Fundici6n Pero, located in the cenal partof Oruro, has for a long period of time been a major source of pollution consisting of SO2, arsenicand lead, because of the outdated technology used. Ibis plant is caueny being dismantled and movedoutside the city, but evidently without change of technlogy. A quantitative monitoring of the emis-sions. both through stNcks and fugitive emissions, is needed as a basis for decisions regarding addi-tional reductions. This monitoring should be complemene with monitoring of the ambient air qualityas well as the soil quality in the surroundings of the smelters.

Water pollution from the Vimto smelter includes heavy metals. acids, phenol and cresol. A neweffluent treatment plant is now under tcxci_s=on, which is desigoed to produce an effluent deane=a6i to be recycled within the smelter.

In the Oruro area there are also some other, small-scaie metal processin industnes, including an irofoundry. Ihe technology used in these units is very pimitive, causing various occupational health andenvirnmental contamination problems. The food industry in the city is generaly rather moden, withprduction equipment of a high standard and causing no or only minor envimnmental concerm

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D. Cochabamba

The city of Cochabamba is drained by River Rocha with tributaries, which flows into River Caine,which in tun joins Rio Grande. belonging to the Amazon Basin. River Rocha flows through theeastern suburbs of the city, then traverses the central part and continues to the SW.

About 290,000 of the inhabitants of the city are supplied with potable water through the distributionsystem operated by SEMAPA. Very few industnes are atached to this municipal network About 80%of the households with municipal water supply are also desaved by the sewerage system, conductingthe wastewater to a collective treatment plant. mainly consisting of stabilization lagoons. The treatedwastewater (80-85% BOD reduction) is utilized in an irrigation scheme, which means at there is nodirect regular discharge of wastewater to River Rocha rom the central part of the city. covered by thesewerage system.

Table 5:5 Results of water quality monitoring in River Rocha, Cochabamba, carried out on February1, 1993. Analyses made by the Water Program, UMSS, Cochabamba.

PARAIE LOCATION:

12 km NE of city Aiport- 18 km SW 24 km SWof city of city

pH 6.45 6.50 6.90 6.85

BOD5 mgfl 88 185 118 87

COD mgfl 140 208 216 192

Toal solids mg/l 166 388 598 770

Susp. solids mg/l 72 54 128 584

Volatile solids mg/ | 33 140 240 69

Elercond.nmho/an 156 556 890 390

Chloride mgll 5.8 39 99 20

Sulfate mgll 37 77 86 63

Nitrate mg NO3 A1 1.7 4B 3.0 4.3

Kjeldahl nitrgen 31 32 39 28mg N/I

Tota phophous 0.8 22 4.5 1.0mg PA _ __ _ __ _

Total colifonns Z3xlO' 6.7x10' 43x104 13x10'NWlOO mll

'The location "Airpor" is at the point where the river leaves the central, sewered part of the city.

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Table 5:6 Results of a preliminary water quality monitoring campaign in River Pir2i, camied out inAugust-October 1989. Analyses made by the laboratory of SAGUAPAC. Sampling stationsno.l and no.2 are located upstream the city of Santa Cruz, no.4 just downstream the city,no.j downstream of one of the sugar mills. no.7 downstream another sugar mill, and no.8and 9 about 20 km and 50 km. respectively. furtier downstream.

PARAMETR SAMPTJNG STATION

1 2 4 5 7 8 9

Flow. m3Is 2.2 3.1 32 4.0 6.4 4.2 -

PH 82 8.5 8A 7.5 8.1 8.1 7.3

°2 satzatim % 96 94 93 67 74 80 72

Susp.solids mgl 40 170 90 140 75 100 570

Dissolved solids mgll 270 260 310 570 290 320 190

ROD, mggll !3 1 !1.6 9.0 1 .C2( , D

In order to get an overview of the potntial nisk of groundwa contamination in the Santa Cnizregion, it is furter=more recommended to underake a general survey of the groundwat quality (withregard to various contaminants) in wells distributed over the entire region.

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Such methods are prefeable to an approach of quickly introducng rules which are recommended byspecialists working in relative isolation. Outside expertise will srely be needed, but it will be moreeffective as integrted support to work involving all the parties concerd. The Chamber of Industryhas recently formed an environmental committee for these purposes and the Association of MediumMies has engaged consultants for research workl However, it will depend basically on the skill andgood-will of the authorities - and especially SENMA as the coordinatng entity - if the process ofdeveloping workable legal requirements for environmental management will be successful.

Giving govemment and industry adequate time to prepare and adapt to the coming rules wold buildthe credibility and effectiveness of environmenl management efforts by ensuring that new legalrequirements are in fact appropiate and feasible. It would also reflect the reality that moutine ega

reeent will noL be a prical opion in Bolivia for some rime; the institutional infrastructrpublic awareness and political will necessary for enfo.rcement of environmental management require-ments do not yet exisL

Aside from the prblems with weak legal Implementation and enforcment capabilities, it is imp=fatto bear in minti that legal solutions, while important have restricted cffectiveness in-any cae. Clearly,no government can undertake to regulate all soues of envronmental harm at once; develooment andapplication of such requirements must be incremental. Governments typically begin with large statio-nary sources of environmental harm such as factories and power plants because they are easier andmore efficient to target - they are already subject to govermment reguation, the means of makingenvironmental improvements are known, the improvements will provide relatively large potentialbenefits (in terms of environmental quality and sometimes production efficiencies, as well), and thesefacilties are more likely to have the necessary financial. technical and human resources to makeneded changes.

ILevitably, most sources will a be subject to significant environmenal regulation in the early daysBroad en m l laws are usualy too vague to serve as an adequate basis for regulating specificsource activities. Even where very specific regulatory requiments exist, the process of informing theregulated community and buidig government implementaton capabilities is grdual. Moreover, manyenvirumental problems we cmused by many snail acs vho opratc in the informal sector or other-wise outside the normal scope of government reguatn.

'Thus. the success of envirnmental management efforts rests heavily on buildling huma2n resources, aswell as broad outreach and education 'ibis requires action on two levels: (I) raising awareness withingovenment, the regulated community, other key institutions, and the general public; and (2) providingeducation, training and on-the-job experience at the university and professional levels for people work-ing in the many fields that affect environmental managemenL

These considerations have clear aplication in Bolivia. As this sectaoral assessment illustates, there areenormous variations in the kinds of mining and industrial activities that contibute to enviromentalproblems, and the nature of those problems within different regions of the country. Ibe govemmentwill need to tailor its rowach accoardingly. Legal a ache, supplemented by outeach and educa-tion offer promise in working with [lie larger operations. On the other hand, making improvementsamong smaller sources, especialy those operating in the informal mining and industrial sectors, willdepend more on broad economic and social, rat than legal, nrsponses.

The rest of this section addresses the following issues in more detail: strengthening governmental and

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PART 6: RECOMMENDED PRIORITIES FOR AN ENVIRONMENTALMITIGATION PLAN FOR THE MINING AND INDUSTRLIL SECTORS

Every environmental aspect of the mining and industrial sectors in Bolivia require very substantialimprovement Ih;is section recommends pnorites for consideration by the Goverment of Bolivia andother intesed parties in preparing an Environmental Mitigation Plan for the mining and industrialsectors. It 's divided into three parts: (1) broad policy, legal and institutional issues; (2) major targetsfor mitigation; and (3) recommended priority acvities.

L BROAD POLICY, LEGAL AND INSTITUTIONAL ISSUES -- Clarifying and Im-plementing policdes to promote sustainable development

In principle. the Envirommental Law (supplemented by the environmental provisions of other recentand proposed laws) contains all the necessary policy elements to carry out a long-term national pro-gram geared towards sustainable, environmentally sound economic developmenL However, there hasbeen very little harmonization of these elements with preexisting polices, laws and practices. Effectiveimplementation of policies on sustainable development will depend on harmonion and integrationat the polcy, legal and operational levels.

This must. of course, be an extended and gradual process. The PAAB offers an important opportunityto initiate the process broadly, although it is still too general and vague in its present stage to accomp-lish much in this area

The Govemment must balance the need for deigning new legal instruments and progrAms with theneed to improve implementtion of existing requiements and programs Ycexisting mg_ams _nd ifLqfit tion-, vAiewyer puss blr. However, improving environmentalmanagement will in many cases require new activities because the field is still new in Bolivia

We also cmmend a cautious apoach to drftinp new legal instruments. The dilemma is tat, onone side. clear legal requirementS are urgently needed in order to direct the industry in its environmen-tal efots; while on the other side, rules should not be fixed without a very genune participation byall parties affected. One way to compromise between these conflicting demands is to involve andactivate the industrial sector (and ot.er p-a ties conerned) in the wo f formulating regulatis.

G-iven the neymess of the issues and the ver limited renre vilable to tackle themn it may oftenbe more prodctive in the long ran to begin with geea egltr frmeworks supplemecnted by

voutr gifidelines and other coopertive actvities wiath reguWated entities. and to formnalze detailednew proedures thmugh mrore comprhensive final regiflations as. operatonal eMeinegos. Theinherent delays in finalizing legal requirements with this approach would be justified by the benefits ofensuring that all partes are familiar with the goals and the probable outcome of such work. A valuableelement during such a learning period would be close cooperaion between applicants and authoritiesin the preparaton of EIAs for new or expansion projects in industry.

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resources is the most important aspect of improving institutional capabilities, as discussed in the pre-ceding section on clarifying and implementing policies.

Technical work such as field sampling, laboratory analysis, etc. should be contractd from the outsidewhenever possible, subject to government guidelines on standards and qualitv control. This will limitthe burden on strained govemnment resources and cncourage the growth of private sector activities.

To the extent possible, govemment insitutions with expanded environmental responsibilities shouddfinnce their work trough service charges and administtive fees. Doing this will require appropriatelegal authorzation and clear. well-managed sdhemes for collecting and allocating the fees accordingly.The SEMAPA arrangement in Cochabamba offers one model that seems to work fairly well. When-ever possible, charges show d be high enough to induce regulated sources to improve tieir environ-mental management practices; however, international experience has shown that this is a difficultpolitical step. even in industrialized countries (see Appendix. IV.1 on regulating industrial pollution).

B. Overall planning for sound use of land and natural resources

1. Gencra aspects

Ihe resource conflicts and planmng problems identified in this study reflect larger problems withinBolivia - and many of them will be resolved only as the country is able to take on the underlyingissues. The National Envimental Laws call for development of an Ordenamient Territoial isotentially the most comprehensive response The laws being prepard on biodiversity, indigenous

peoples, water and foestry may help to resolve some problems of natural resources management asthey apply to different sectors.

Some problems related to mining and indushy, such as conflicts with specific agiricltural and urbanuses of water. will have to be addressed case-by-case Ohe problems coud be addressed thrghgeneral policies even bfore formulation of an mlento TetoriaL Some of these policies coulddraw upon existing examples, such as encouraging the development of industrial estates like the one inSanta Crz. It is important to note, however, that such requiremenis have litle value witou an imple-mentation scheme For instac the 'indusrria estate' arrangement in El Alto cano become effectiveuntil the necessary infstructure exist so that indusries can function normally within the estate.

Ihe way that SEMAPA manages the water and sewer systems m Cochabamba could provide anotheruseful example. Several aspects of the SEMAPA program might be usefuly applied elsewhere, inclu-ding: its graduated system of fees; its arrangement to supply water from the lagoons that receivewastwatr to farmers located downsteam; and the regulation of tmnneries located within the centralcity. Any evaluation of this program would need to take into account the factors that led to its aca-tion, as well as the operation of the program itselE

2. Setting Goals for Ambient Environmental Quaity

Setting goals for ambient environmental quaity is one of the basic planning tools that governmentsuse for managing environmental quality and natua resource use. These goals set targets for environ-mental quality, based on the primary intended use of a given resource base. Once this primary use is

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nongovernmental institutions; overall planing for sound usc of land and natumal resources; planningfor new investments; and key regulatory and implementation issues.

A. Strengthening governmental and nongovernmental Institutions

Unclear insttutional responsibilities and weak institutional capacity are a major obstacle to canryingout public policy initiatives in many developing countries. Ihis is true genaly in Bolivia, and Itcertainly applies to impving environmental management in the mining and industial sectors. Evenwhere policies and laws already exist, it will not be possible to apply them effectively withoutstrengthening institutional capabilities.

1. Clarifying government institutional responsibilities

In many cases, it is unclear which government institution should be responsible for drafting and ad-ministering environmental legal requirements and related programs, or how institutions with overlap-ping junsdictions should coordinate. Special fars are the recent ceation of SENMA. with extremelybroad authority and very limited resources, and the policy to decentralize government as much aspossible.

The prevailing opinion in Bolivia seems to be that SENMA should help to supervise, coordinate andmanage broad cross-cuttg environmental questions, while the sectoral ministries should be respon-sible for the direct management and enforcement of laws and regulations.' Such an arrangement alsoseems to be implied in the Environmental Law, as it states that Enviroment Units should be aeatedin the different ministries.

In carrying out this duty. the ministries for mining and indutry (MM and MECE, respectively) willneed to draw upon expertise existing in related or other govenment organiations. The MMdM wouldfor example use the IIMM in Onwro or the Technical Services of SENCAM, while the MECE wouldcoutm on assistance from its technical branch, which is being tansformed into a nonprfit privateinstitute. Certain reginal organzations codd also serve in tis role. The two minisies would also beresposble for the control and licensing of laboraes within their respecve sectors, a task whichshould. however, be camed out in coordinauon with SENMA. Many policies and programs will haveto be coordinated with deparmental and local government authorities, particularly in areas such asland use planning, water quality management, wase management and sanitation.

2. Stengthening institutional capaity within and outside of government

Increasg istitutional capacity and introducing sound work practices are vitally important to efflcientadministration of environmental questions TIhe goal should be to form small but well qualified groupswthin eacih of the responsible insttutions, bot within and outside of govemment Building human

'Ibe main exception is responsibility for administering the National System of ProtectedAreas, which the Environmental Law specifically assigned to SENMA.

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institutional capabilities than the Governnent currenty possesses. However, the Government could laythe groundwork for establishing these goals, perhaps initially tough the regulation on environmentalquality. Here are some poins that we would recommend for consideration:

a. T1ke a repoml pp& conctrating on major rivers and watrhds. In terms of enviromnentalmanxagemen, the most important areas a: the Altiplano basin; the parts of the Amazon basin inBolivia where thee Is mining for alluvial gold; cabamba and Sana Cruz. Pollution of surfacewaters is the top pioity in most of these places. Goundwar stDies are needed in Santa Cruz andless urgently in Cochabamba.

As resources permit, air pollution should also be considered. Most likely candidates ae: dust frommine tailings; emissions and dust fifli cement plants; emissions from major smelters; and udban airpollution, particularly In La Paz where there is already some monitoring going on with advice fromMexico. Tlere are probably fewer problems with potlution from major energy sources and motorvehicles than in many other developing countries. Iibs is because Bolivian petroleum is relativelyclean-burning and Yacimiento Is already proaucing some motor vehicle fuels with low lead content.

b. Ibld hetter baeline dat2 The Government must have better information about baseline conditionsIn order to set and evaluate environmental quaity goals. The introduction of EIA reqwurements offersan opportuity to begin gaering more data about enviromnental conditions in areas with mining andindustrial activity. Begin bulding an information network through existing government and reseachinstitutions involved in environmental monitoring. If appropriate, make this a component of the newnational eavironmental information system mandated by the Enl Law.

c. Fxaiine the Regulations for Disposal of Tndusirial Waste into Bodies of W .inisterial Resolu-tion No. 010/85 (as well as any other closely related legal requirements). Ihese regulations provide forclassifying bodies of water accordig to use and setting environmenal parameters accordingly. Iheregulations have never been applied, except insofar as they may be consstent with some municipalwater management pgrams. In light of the considerations discussed above, it seems doubtful whetherthey adequatcly address ether how to set ambient goals or how to regulate discharges fom individualsources. ibis latter point is discussed in the following section. However, there may be ways that thisregulation could serve as a useful tool; if so. develop a stategy for its application within the broadercontext of environmental management

C Planning for new invesmnents

Improved planning for major new investments is key to breaking the cydle of poor environmentalmanagemenL Designing better systems from the beginnmg is much cheae and more efficient thanchanging existing systems. k is also easier to inject pollution prevention measures at the design stage.In this context, the ter_ One investments" alies to utantial cbange in exising faclities, as wellasL estahlishing new facilities. Whether a given investent is "major" normally depends on crieri suchas the amnount of capta expediture audlor increased producto capacit -Andlor projected eniro-menta imrM. iTis can be evaluated in absolute terms or, in the case of existing facilities, as apercentage increase.

In the mining sector, the most imponant group of pending investments are lined to the restuctuingof COMBOLk including inviting private participation in capitalization and manngement In the indus-

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identilied a government selects a few key. contaminants or other parameters (such as chemical orbiochemical oxygen demand) that can be used to evaluate to what extent the targeted level of environ-mental quality goal is being achieved.

Ambient envimrmental quality goals may be estblished on a national or regional basis. depending onlocal conditions. Ihese goals are often linked to conditions in specific watersheds or air basins? Waterquality goals are most commonly set to protect ither human health (through potable water), agricul-ture productivity, or protection of aquatic life. Air quality goals are usually set to prtc human healthin densely populated areas. They may also be designed to protect agricultural productivity or sensitiveecosystems; this is becoming inreasingly common in parts of the world where acid rain is a probleaLRccent inernational efforts to counteract global waning and ozone depledon are an attempt to pro-mote ccrtain air quality goals on a global basis.

In many cases. it is not possible to achieve enviromnental quality goals for many years, or even de-cades. Ihis is true for industrialized, as weU as developing countries. The need for gradual progressthrough a phased approah is part of why having these goals is important; they can provide a frame-work for establishing more detailed requirements for environmental managemet, and for measuringprogress toward ataining environmental quality targ-ts over time. Govenmients always retain theflexibility to adjusL their environmenta quality goals periodically, as more information becomes avail-able and conditions change.

The first step in setting environmental quality goals is to identify a primary use for the targeted area orresource In practice, of course, there are usually multiple resource uses in each area; and in theory, it%would be possible to set multiple goals accordingly. However, this would not be a practical approachin Bolivia because of the weak institutional capacity regardinig environmental management It wouldprobably be more effective to focus on te use tMat seems overall most important

Once the pnmary use is identified, the next task is to selc the mental parameters that wiserve to monitor and evaluate environmental quality. A special cocern in Bolivia is that high concen-trations of many heavy metals occur nauy in mrgions with extensive mineral resources. It is impar-tant to take this facr into account when seing the enviomental quality goals for those areas;othervise, the goals selected could be unnecessarily stiact and imposible to acdieve, Ibis is anexample of why it is important to have as much baseline infonnation as possible when setting environ-mental quality goals. Where such informaion is limited, one option is to consider the goals selectedby other ountries with similr natural conditians.

In the near term, we would not recommend attempting to establUsh detailed, comprehensive environ-mental quality goals in Bolivia To do this effecively would require far more technical resources and

'It is also possible to set ambient goals for soil quality but this is rare. since in most casesefforts to address air and water pollution will also ameliorate many problems of soil pollution.Soil usually acts as a sink for waste material, receiving pollutants tbrough transport in water orair.

'In principle, ambient goals can also be used to set emission limits for regulated sources inthe absence of more specific regulatory requirements. However, this is a cumbersome and ineffi-cient approach that is not generally recommended.

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1. Assessing the scope of existing poblems from past opeations and what remedial steps areneede

2. Derminng how and when remedial measures will be tken and assigmng responsibility fortese actions.

3. Assigning liability for existing and futr problems that may arise as a result of past environ-mental practices (e.g.. pmviding substtte supplies for conminated water, addressing health

4. In the case of mins that will coninue in production, upgrading environmenal managementfor new investmcnts and futurc opraons, as wcll as future closures

5. In the case of mies that will be permanently closed, determining and financing ap emeasures to remediate existng problems and prevent fute contaminion.

6. What guidelines and/or legal obligations may be appropriate where there are no specificnational legal requiremenLs that address the above issues.

Tbis is still a very new issue woddwide, and Bolivia should consider the experience of other countriesin formulatmg its own policies. Ihe general trend seems to be toward using enviuonmental audits as abasis for dtermining what needs to be done and prjecting the related costs. The government usuallyagrees to retain liability for problems resulting from eistig enmal harm. The otber factorsnoted above are normaly subject to negotation, with the new investor agreeing to take on some or allof the othe enviomental concens. subject to adjustments i the purchs puce and other considera-tions.

Two conditions in Bolivia will provide certin extra challenges. Fist some mines have already beenOr are opened to private patcipation before an en policy for this process can be developedor implemented. The government will have to determine how to handle tbis situation consistent withpublic health and economic concems, withOut eitber unfuirly burdening these early investors or givingthem an unfair advantage with respect to subsequent investors.

Secnd, it will be some time until adequate evironml requirements applicable to mines are adop-ted; until then. it may be unclear what standards should apply and bow tO enforce tem.One option is to spell out environmental responsibilities and liabilities more clearly in the sales con-tracts. Where no enforceable national enionmental requirements exist, it may be possible to referenceinernational or national guidelines or voluntary standards of conduc If this is not acceptable, anotheroption might be to include a clause in each contra that ackinowledges the parties' obligation to com-ply with applicable environmental requirements, and in the absence of such quirements, to make bestefforts tO comply with internatonal practices in L atin America. Again, a review of evolving interna-tional experience should be helpful.

Incoroatg enviromnl concerns into the restructuing activities is a delicate process because ofthe great pressure Chat uslly exists to proceed as quickly as possible. It would be unrealistic toexpect "ideal" envionmental solutions. However, the fact that COMIBOL will coninue owne of itsmines provides an extra incntive for addressing these issues in the COMIBOL resmucring process.COMIBOL's program to conduct environmentl audits and related activities will help to signal the

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trial sector, the most dynamic development seems to be in agro-based industry, especially the manu-facture of edible oil and soya products. but also in the field of alcohol distilling. Other branches withimportant expansion projects are: glass bottle manufacturing; cement plants; and some of the rathersmall scale recycling units, such as lead battery. lubricant oil, and plastic.

1. Environmental impact asessment

SENMA is now finalizing Bolivias fiLst EIA regulations. The government should make sure that thenew regulations are clear about when they apply to major revisions of existing facilities, as well as tomajor new projects. As noted in the discussion above on clarifying and implementing policies, closecooperation between applicanas and authonities in the preparation of ELAs should be a centrai elementof implementing new environmental management policies.

SENMA and others involved In this process will have to plan carefully in terms of how many andwhich new investments activities should be the early candidates for ELA. This is important to ensurethat the extremely limited EIA capabilities in Bolivia are not overwhelmed, and that there are someearly successful experiences with this new requirement A promising sign is that according to informa-tion provided to the Study Team during site visits, some Bolivian banks have almeady begun requiringElAs as a condition of graning loans to help finance major new industrial investments. SENMA isalso working with the Inter-Ameican Development Bank and Bolivian banks to arrange a progrm forthe next year or so where special funds will help pay for ElAs equired as part of loan conditions.

2. Environment and the restructuring of COMIBOL

The process of restnucturing govenment holdings thrugh privatation and other forms of privateparticipation offers a unique apportunity to inject better environmental planning into existing industrialsectors in a country. The potetal impact of :his process has been most evident in Central and EasternEurope, where potenial investors have stressed er need to know about environmental requirementsand liabilities before making investment decisions.

Clarifying environmen responsibilities and liabilities in the restrucaring process helps to improveinvestment decisions and the long-term viiity of the investments, and to mimmize futuwe health andeconomic risks from poor environmental management practices. Tbe nate of the restucuring ofCOMIBOL makes tese factors espeally important becase COMIBOL will retain ownesip of itsproperties (due to Constitutional restrictions on divestiture of the nationalized mining holdings). It isespecially important that rules and rsponsibilities be clear in these arrangements for private participa-tion because COMIBOL wil have a dual role, as both past owner and as current owner (and some-times as an active partner).

The new ventunes emanating from the restrucing of COM[BOL will involve substntial investmentsin new proesses, madinery and operational procedures. COMIBOL and the World Bank are nowadusting their plans to include enviro nental considerations. In the coming months, COMlBOL willconduct environmental audits of its major holdings that have not already been placed under contractsfor private participation. Bhe rsulting information can help in preparing documents for bids and con-tracts. and can also inform more generally the process of evolving ber environmental practices in themining sector. Major concerns to be addressed include:

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It will take considerable time to carry out.a program of issuing and monitoring permits to individualsources. As a supplement and catalyst. the government should work with companies and other interes-ted parties to develop gencral and industry-specific environmental guidelines and codes of conducL

b. Price-hased instmments shoild be used as much as possiblc. consistent with poliy. le?al adinsj=litinzkl omyrint-- The new Environmental Law encourages the use of economic incentives.However, adopting such appoaches apparently require amendments to national fiscal legislation.

- Government instiutions with envnmental management reponsibliies should try to financetheir work partly through service chrges and adminisive fees. Graduated fees or otherapproaches to induce desired behaviors should be used where politcally and otherwisefesible. This was already discussed above u institutional stengthening.

- Carefully designed, limited subsidies may be appropriate to encourage cereain changes duringthe early years of new eavironmental management programs. These would have to be reviewedfor consistency with the govermenfs ovewiAl econamic policy, which discourages the use ofsubsidies.

- Identify opportnities to build upon or expand existing ycling of glass bottles, used bat-teies, etc.

- Consider raising the price of scarce resources, such as wate or electricity, to encouage con-servation by users. Prices could be graduated according to different categories of users, as ispresently done in some Bolivian cities for water andor sewer fees.

2. Promoting environmentaly sound technologies and processes

As discussed above. the accomplishment of enviromentaUlly sound pracices cannot be achieved onlythrogh formal legal equirements and incentves. Ihis is particulary true for countries like Boliviathat have taditionally weak public administrations.

An impornt alemative means of achieving envirnmmnt management goals is to induce industry toact voluntarily. This can be achieved by a combination of Informaton and persuasion. Pablic opinionand the activity of non-governmental organizations are often influentidal In this respect Some of thegroundwork for encourgig industry awareness and voluntary improvements thought this route hasbeen laid through Bolivia's use of widespread consultation in developing major envirommental initia-tives, such as new laws and the PAAB.

It Is common in many countries for major companies or branch organiztions to establish technical andethical rules that their members agree to fcflow. The Association of Medium Miners and the Assoca-tion of Leather Tanning Engineers have already started up activities of this kind in Bolivia. Suchapproaches are also being promoted witbin other Bolivian industral organizations, such as the petro-leum industry. Many of the suggestions for coeation with industry mentioned in this section of thereprt could be carried out prty tbrough work with such groups.

ITe Study Team working on this environmental assessment supported these efforts by organizing incooperation with SENMA two well-attended seminars on the mining and industrial sectors, and by

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Government's commitment to its new policies on environment and sustainable developmenL Besidesmarking a significant advance in the wining sector. it may also set an important precedent for anyfimre restructuring activities in BoliviL

D. Key program design and implementation issues

This part considers the issues of: choosing quantity-based and pnce-based regulatory instruments forenvironmental management; promoting envinaly sound technologies and prcesses; solid andhazardous waste management; and occupaional health and safety.

1. Choosing quantity-based and price-based regulatory instments for environmental management

international expenence has shown that envionmental management regimes should incude a mix ofregulatory instruments. Quantity-based approaches (QBA) require polluters to reduce the amount ofpollution so that total cnation in a given area is restricted to targeted ambient limits; QBAapproaches form the underpinnings of environmental management regulation. Price-based approaches(PBA) rely on market forces to help allocate envirnmental mnnagement responsibilities more effi-ciently; PBA approaches are an important supplement to QBA regulation (see generally, AppendixIV.l on regulating industrial instruments and Appendix IV2 on economic instruments).

Selecting the best mix of regulatory instruments in any given situation depends on a thorough under-standing of the particular context and circumstances. Any decision, no mar how well made, willneed to be re-evaluated and modified periodically. With those caveats in mind, we tentatively recom-mend the following overall approach as best suited to the realities of environmental managementcapabilities in Bolivia, where there is litte technical experise or institution capacity:

a. Indvidual repulation of maWor sources should be th n ment used by national and local_uJmrties to combat and reduc_ nining and in_trisl pollution Ihis regulation should be linked topmits for construction and opeation (tied to the EIA process, where applicable). It should be basedon:

Technology, in terms of best available technology" in the county, In the choice and operationof system design equipment and proesses. with emphasis on pollution prevention; and

Emission limits expressed clearly as maximum allowable amouns (NOT concenfrations) ofpollutants being discharged (e.g., kg of BODO or COD'" per day or per ton of product).

This is essentially the approach used by Bolivian operations with reasonably sound environmentalmanagement practices. These include: some of the major mining and industrial operations with intrna-tionsal participation; the Yacimientos refining plants; the FANDEA explosives factory; and the regula-tion of tanneries in Cochabamba.

9Biochenical oxygen demand.

4'Chemical oxygen demand.

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However, this predicament must not serve. as an excuse for not acting to improve workers' health andsafety wherever such possibilties exist Opportunities do exist in the larger mines and the formalindustrial sector. Initiatives for improvement will be most efficient if addressed to employers. Influen-cing employers could be mpli to some degree, thrugh information and p in, but couldalso take the form of Incndves for those achieving a low absenteeism from work. Such a schemewould involve refonmulating the work insurance system

TMe Government needs to examine how to incease its own upport for worker safety and also how toincrease donor sppor It is reomable bw little forign assistance is going into this area, whichaffects so much of the populaon either direy or indirectly. In the realm of environ manage-ment occupational health and safety measures could often be linked to broader questions of safefacility operatons and emergency preparedness

Regadig more specific meaures to be taken the occurence of silicosis among miners is a majorconcern A study frm 1978-82 showed an average rate of silicosis of 11% among undergroundworkers (see Part 4, cbapter MV.A). It is probable at the situation has improved since then tbroughthe closure of some critical mies and the intrduction by some companies of heBlth controls andappropiate measures. On the other side, many more miners ae today woring in the informal sector,In mines with very rudimentary ventllation and oher preventive faclties. Generally speaking, little isknown about the present day extent of the problem, so a new wide investigation concermng t healthstatus of the miners should be caried out. This would povide a basis for subsequent decisions andmeasures.

Anoater urgent issue relatn to the health of miners. is the regular use of mercury in the exploitationfor alluvial gold, with resuting possble intoxication, both in connecdon with the process of amalga-matioa and, indirecty. through the consumption of mercury-beaig fish (see Part 4. chapter ILF).

6. Addressing environmenal problems involving smal sources and the inomnal sector.

As discassed above, en ment coces aising frm the activities of small sources and the infor-mal sector are more difficult to addrs than those associated with major sources. Governmets gene-rally tun their attention to these types of acdvities only after tere has already b'Ae progress in work-ing with larger sources.

In the case of small scale industrial activities, this approach is probably appropriate in Bolivia. How-ever, environm a and eat aciated with the coopeavas and other small scale minersare so widpred and urgent that they reqir atention now.

Mhe fLrst prionty should be to get a better un snding of small scale mining in Bolivia and similarproblesn in other countres. Key quesdons to be answered are:

a. To what extent are small seale mining activities in Bolivia economially vi_hle9 One frequentlyhears that a major problem for this subsector is gaining access to financng and crediL However, it isthe impression of the Study Team that in fact wbere there is economic potential, cooperatives are ableto obtain small scale investments. The more general problem seems to be that so much of this activitysimply is NOT economically viable, but instead is the outgrowth of shrinking formal employment in

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suggesting a first draft for a Code of Practice for Mining.

Another potential incenfive for better environmental management is for FONAMA to begin directingmore financial support to studies and projects in this area. The following Part n on major targets formitigation notes some pending or newly approved proposals to be supported thrugh FONAMA.

3. Solid and hazardous waste management

Bolivia needs to begin estsblishing a fiu;eworz for sound management of solid and hazadous wastes.At a minimum, the goverment needs to:

a. Identify major categones of waste that should be hanlled senarL For example, these mightinclude solid waste (household wastes, paper, etc. that are relatively non-toxic) and hazardos wastesthat are particularly dangerous because of tOXicty. flammability. reactvity, etc.

b. Develop Wicies and pudelines for better waste m2nngment inclodinp waste reduction. Forexample, took at options to encourage recycling or reuse of potentially useful wastes, including waste-waters in areas with water shormges.

c. . This would have to bedone In close coordination with local government authorities. It should integrate the results of thestudies on improving municipal waste management that MUA is funding in Cochabamba and othercities.

4. Laboraty and monitoring apacities.

Increaing labtory and monitoring caabiities is fndamental to improving the technical, scientific,and legal aspects of envioomental mangement in Bolivia. Ibe market for these servica will gra-dually increase as environmental management grows, particularly if, as rcmmended above, govern-ment ±nstitutions generally rely on private services. Making the needed improvements wil requiresegteing both technical and human resources. An important step would be establishing a centalenvironmental laboratory charged with setting standards for quality assurnce and quality control,serving as a reference laboratory, and helping laboratoies aaoss the counuy to coordinate.

5. Occupational health and safety and its social implications.

The problem here is primarily weak implemenion, rather than inadequacy of existing requirements.The existing legal requirements for occupational health and safety are little respeted and the generalawareness of these maters is low. One reason for this undoubtedly lies in the major economic andsocial problems which are affecting Bolivia. A substantial part of the population is engaged in activi-ties. which often may be trmed emergency or survival occupations, and in which here is simply noroom for health or safety considerations. It is, indeed, difficult to see how this laner situation shouldbe attacked. General econoMic development in the country will probably be the only viable road tochange.

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involve examining possible formal and informal incentives and also enlisting more support from inter-national doLiors and assistance organiions.

One of the areas of pnme imporance, which would benefit from international coopertion, is thefollowing-up of the Investigation of the status of silicosis and silico-taberculosis among miners. whichwas cffechated more than a decade ago and demonstrated an exceptionally high rate of these diseases.

B. The mining sector

1. Impoving enviromnmental management In Onno

Environmental conditions in the area of Omuro are causing grave concem. The problem is very com-plex because it involves pollution from many different sources, including: acid mine waters from agreat number of mines in the area: effluents from mineal concenwaon plants; effluents and air emis-sions from smelters and other industry; acid drainage from waste rock and tailings; and human wasteand sewage.

The impacts of these problems are serious and difficult to fix: surface and presumably ground watersare being contaminated and mgde unsuitable for buman consumption or inigation; economic damage iscaused through destruction of communal water and sewage installations; and the population is dirzclyaffeced by sanitary problems connected with insial and urban pollution Also, the ecosystem ofLake Poopo is seriously threatened. Ihis poses serious threats to the fishing and the daily livelihood ofthe Uru Muratos tribe, which lives on the shames of Lake Poopo. Ihe lake is also an important water-fowl habitat

Pres knowledge about the situation is restricted and superficial, and few initiatives have been takenTwo limited studies have been proposed to FONAMA for funding under the Enterpise of the Amei-cas initiative; one on enviDnmental conditions ia Lake Poopo, and the other on conditions in Orumtown. Also. two of the major mines of the area will be audited under the COMIBOL envimmnentalprogram. In the following section on recommended priority actions, ftue Study Team suggests begin-ning a pilot project in the Onm area on integrated envirnment managemeot

2. Potosi and the recession of the mining sector

The city of Potosi is in a ste of prolonged economic crisis due to the recession of the mining sectorand the virtual lack of altemative occupation. Added to these difficulties are the serious environmentalproblems caused by: water scarcty; acid drainage from the Unificada mine; the very extensive smallscale and artisanal mineal exploitation in the area; the unplanned establisbment of concentration plantswithin the city boundaries; the uncontolled discage of mining wast; and the unrestricted release ofcommunal waste and sewage into rivers flowing through the city.

The result is an extemely unbealthy milieu with nvers and soils being highly caminated, within thecity as well as downstream for tens of kilometers. However, there is little specific and quantitativeinformation about baselne envirnmental conditions, or the health impact on people living and work-ing in the area. The Study Team has supported SENMA in reorienting a planned sidy. to be financedby FONAMA, towards the problem of pollution from the small concentration plants within Potosi and

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the related effects on the nearby populatioJL Another planned activity is the COMlBOL environmentalaudit of the Unificada mine (Cerro Rico).

3. The Amazon basin in Bolvia and mining for alluvial gold

Paris of the Amazon basin located within Bolivia are seriously affected by destruction and contamina-tion related to the mining of alluvial gold. Present activities do not seem to be significantly affecfingindigeaous peoples, but the potential impact both on them and on the ecosystem in genea need to beinvestigated.

Remediation of eXsting environmeta damage wil be a complex task. A huge compElg factor isthat the ares in question are largely outside of public control and without infaucture. Health serviceis nudimentary and serious accidents are very common. By and large, protecting the environment orworkers' health and safety are unknown conceptiors.

There is only very limited information about actu conditions in the area or the interclation amongecological, economic, techical and social factors. The 1992 study conducted by IDDEMA is an excel-lent starL Ihis type of work should be extended to Tipuarm and other areas in the foothills of theCordillera Real where alluvial gold mining is concetated.

The more direct task of elimmating the use of meruy - or, more realistically, of improving theprocedures used in the amalgamation and fuming processes - is a mailer of enforcement (in the limi-ted instances where this is possible) and more generally of education and infonnaion. Even thoughthis task is fundamentally the responsibility of government authorities, nongovernmental organi onscould play a major role.

4. Smal scale and informal mining activities and their socia and enviomal implications

The terrible occupationl and eavironmen hazards lnked to smanll scale and informal mining aregrounded in Bolivia7s pressing economic and social problems. Like mare general warker health andsafety problems, it is difficult to see how these hazards can be significantly improved apart fomameliorating the underlying situation. It is not primarily a question of providing mrce appropriatetechnologies or better information The basic activities are essentially not viable economically. Evenso, in many cases where a family (often including children) is working togedter, its income may beequal to or better than what it could earn from more regular jobs.

COMIBOLs plan to lease mining rights on some of its less productive holdings to cooperaives islikely to result in deteriorating health, safety and environmenal conditions, as compared to the situa-tion when the mines were previously operated an an industrial basis. COMIBOL Should explom thepossibilities for minimizing, if not eliminating, the potential for some of the most dangerous types ofsmall scale operations to be caried out in holdings that are newly leased to cooperatives and othersmall ventures. If there is some success in this area, COMIBOL should consider how any such mea-sures could evenually be applied to other holdings that are already leased.

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C The industrial sector

Overall, this environmental assessment indicates that the environmental and occapatonal problemsrelated to the ma= facturing industrial sector in Bolivia have a more limited scope and are less autethan those identified withn the miiing sector. Nonetheless, there are several regions where mitigationmeasures ned to be taken in the short or medium term, as summaized below.

1. POor uxban and Indubstrial planning in El Alto

The most precarious environmental situaion, both with regard to industrialized and urban areas. Iseacountered in the city of El Alto. The almosi complet lack of adequate industrial and urban plan-ning. provision of basic infiastrucre and municipal services (eg. water supply and sewmeage systemswith appropiate waste teatment facilities) gives this city a high priotity when it comes to remedialaction. Moreover. the present uncontrolled disposal of liquid and solid wastes threatens the very sensi-tive ecosystems in the closed Altiplano Basin, including Lake Titicaca The present efforts to findsolutions to the very complex waste disposal problems in El Alto should be given full support Imple-menting the appropriate solution will no doubt require financial support from sources outside themunicipality of El Alto. TMe scope of the problem is so great that the GOB wiU have to take a respon-sibility for its solution. probably in cooperaton with foreign assistance efforts.

2. Pollution of the Choqueyapu River in La Paz

The heavy pollution of the Choqueyapu River in La Paz, caused by both unteated industrial anddomestic wastes, has reached such dimensions that the nver can be regarded as an open sewer goingthrough the whole city. In addition to the adverse aesthetic consequences, this situaion creates obvioushealth hazards to the people living close to the river banks, to those who extract sand and gravel fromthe nver bed, to those who use the water for imgation downstream of the city, and to those whoconsm the cops produced in the irrigated areas.

The industries located within the city of La Paz should be given inentives or be forced to reduce theirwat consumption by reycling of process water and to undertake prteatment of at least their mosthazardous wastes (toxic substances and heavy metals). Complete on-site wastewatcr treamnt by allpolluting industres may be difficult due to lack of available land. Therefore, a collective treatmentplant for all wastewater from the city might be the only realistic solution For many years, varioussolutions have been discussed, but so far, no final solution has been defined. The main problems seemto be high costs both for construction and for continuing operation and maintenance.

However, the problems will only get worse and become even more expensive to fix as time goes on. Itis therefore strongly recommended that the municipality of La Paz and the GOB give this question ahigh priorty and slect a solution to be implemented as soon as possible. As part of their response,they should consider developing an institutional anrangement for managing municipal water and sewerservices similar to the ones used in Cochabamba and Sta Cruz.

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3. Upgrading watershed management i Santa Cruz

The municipality of Santa Cruz has already prvided adequate facilities for proper enironmentalmnanagement by the great part of its industry that is Ic:ated in the industrial estate. Most of the re-naining industry in this region needs to upgrade its envinmental managemcet High priority should

be given to the industries located in the valleys of the Pirai and Chae rivers; most of these plantshave inadequate or no wasiewater tatme

Mitigating pollution of the Pirai River can only be accomplished thmugh aa integratcd control andanagemaent prpgram coveing the whole wateihed. Sound rver basin management is necessary to

ensure that the multiple use of the nver for reeaation. swiming, fishing and irrigation continues tobe possible at the same timc as it is used as a recipient for adequpaely treated effluents. Groundwaemonitxing is also necessary in order to evaluate the current degree of contamination and make anyneded plans for protecting the future water supply.

There is alrcady a regional organism, SEARPL that is responsible for sevral aspects of river basinmanagement in the Pirai River catchment area. SEARPI shud be given extded responsibility tocarry out more comprhensive environmental management programs, in cooperatQ n vwth industry,SAGUAPAC and the regional Corporation for Development (CORDECRUZ). Inspection and upgra-ding of the effluent treament facilities of the sugar mills in this region meits special prionty. Ideany,this should be addressed before the "zafea" (harvesting season).

4. Extning sewerage systems in Coc(abamba

The municpality of Cochabamba has also taken several commendable initiatives to reduce indusrialpollution in the city. The next step should be to extend pollution control activities to those parts of thecity which are not presently coveredL

Stdies are already in progress to extend the sewerage sysems to the eastern and western parts of thecity, and also to provide sepementary wamwaw treatment facilities. Industries located in areas thatwill eventually be equipped with sewers will have to install or upgrade their treatment systems, as wellas hir solid waste management practices.

However, it appears that none of these improvements will be possible until the city can resolve julis-dictiooal and politial disputes with adjacent municipalities. Therefore, resolving these disputes shouldbe given top priorty.

IIL RECOMMENDED PRIORITY ACTIVrrIES

Bolivia is at the very earliest stages of irsegrating environmental management and sustainable develop-ment into its mining and indut maufacturing sectors. Human, technical and financial resources arevery limited and institiona capacity weak The govment is receiving considerable internaionalassistance wilh drAfing policies, laws and regulations but much less support for implementation.Thterfore, this section identifies from the broad list of priorities above a subset of activities that the

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Study Team believes could help imp= future capcity tQ design and implement effective pgramsfor environmental m_nngemenr In te mtninp and indurial _.ectors It may be possible to incorporaesome of these activities into ongoing projects of the World Bank or other intemational organizations.In other cases, undertaking these activities will require new resources.

Ihis section addresscs: aoss-cutting themes; improved cnvironmental management for major sources;issues requiring furhr sbdy; and proposal for a pilot project on integrated environmental manage-ment in the Onuro area One of tihe purposes of the pilot project would be to provide coordinatedoppounies for specific application of activities In the first three areas. C(bese first three area areonly summarized briefly, as they daw upon more detailed discussions above.)

A. Cross-cutting theaes

In any activities undertakn there should be a concerted effort to design the work so that it:

1. ProvIdes maximum oprnity for building institutional capacty on-the-job trainin and im-provement of technical capabilities and faclities.

2. _ _ _ _ _ by all affected sectors and parties.

3. Helps to proote- incenfives aknd rninimize disincentives to tlhe efficient use of natural re-.9wm

4. Cnnihutes to builiing a nherent dtabase on enviro:nental conditions in Bolivia

B. Improved eavironmental management for major sources

The emphasis here should be on improved planning for futre Investme (both new and expandedfaciities) and addressing the most serious problems in existing major facilities. Wheevcr possible,environmental improvemens should be linked to greater production efficiencies.

aseffectively as possible.

2. Sjung hnithe dcyg n onicto fevirno Wc ment __ceizin the mining and industial sectos

3. -Ug ental aut of existing facilities to serve as a basis for negotiating neededimprovements, to be done on a voluntary basis or eventuaEly as part of the permitting process.

4. 'Ret[Cr Sdaninin- iTtfraqtnictnr and m_nigement for inistdal estates, with El Alto receivingthe bighest priority.

5. Developing guidelines and pilot poc in cooperaion with industr to build klowledge andexperiece. hIese activiies should include some focus on long-tenrm opeation and main-tenance of improved equipment and procedures, as well as ways to make imtial improvements.

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C Issues requiring further study

Among the many Issues requiring further study, the following are especially important:

1. Conditions, underlying causes and ways to address cnvironmental and health problems relatedtosmall scale hard mck mining and alluvial _old iin

2. _hnnsng and and lmplemenfinp goals for smbient envimomcntal uitily Including developingan effective mix of regulatory instruments.

3. Identiiying mnti adkressins key cconomiC factoN. such as:

a. Claifying what changes wil be requied in national or local laws in order to adoptappropriate price-based regulatory instruments;

b. Pricing and implementation regimes for water, waste disposal and enrgy services;

c. Other economic measures that can promote more efficient resource use and manage-ment. For example, some producers who use recyded materials believe that they re-ceive less favorable tax treatment thn producers using new materials.

4. Clarifyinp.what measures are needed to _e sensitive emsystS from mining and indus-trial activities.

5. Inenaygiang available huiman and tecnical resources anid determinlin,g how to make mammuse of these-resourmes and how to incrase them.6

D. Proposal for a regional pilot acivity - Integrated environmentl management In the Oruroregion

The Study Team believes that there is an urgent need in Bolivia to begin addressig in an integratedfashion the complex linkages of cxisting and projected problems assocated with mining and industnaldevelopment, as identified m this seccoral environmental assessmnL lhe team reommends locatingsuch a pilot project in the Oniro area

Onuro represents a striking confluence of many of the major problems identified i this sectoral envi-ronmental assessment This drainage basin is expeiencing multiple sts due to the proxuimty ofmining fields and industrial activities to an urban area and Lake Poopo, a sensitive ecosystem which isthe home of the Uru Muratos tnbe. Oniro already has an important institoutinal base widh which towork, including laboratory and research capabilities.

*6 0ne example of a start on this type of work is a recen study of the water supply sector thatincludes an evaluation of technical and human resource capabilites and needs. PrgnN alde C-ontrol y Vigilancia de 1a Caldad de] Agu2 en Sistermas de Ab2stecirniento, Mlin. de AsuntosUrbanos y Ministeio de Prevision Social y Salud Publica, ANESAPA (La Paz, 1992193).

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Building technical and institutional capacity for environmental monitoring and environmental manage-ment in Oruro would offer a focus for coordinated application of many of the priority activities recom-mended above; it could also offer a model and training ground for making similar improvementselsewhere in Bolivia.

Key elements of such a pilot project should be:

1. Inveto Of tl human resources. In all sectors. the acrent situation as well as existingtrends should be described.

2. Fstablishient of baelinie qUality dtat Sampling and analysis to determine the chemical oomposi-tion (naural quality) of soils, groundwater, surface water, and biota, as far as pible in theiruncontaminated state.

3. I Dflcation of sources of polltion. e nnition nd quantification of emissions. Delneation ofareal sources as well as point sources.

4. Characteri7ation of the diprsinn alnd depositon ptr of contaminants as well as levlsommiiqsion.IMvMtrUQij l..environment). Transport and deposition paern in groundwater.

rivers, lakes and thogh atmospheric fall-ut.

5. sfi i n. Biological effects of liquid and solidwaste in the aquatic as weU as the terrestrial envirnme

6. Assessment of health effects and n c im of polutnnt_. Direct health effects inworkes, and indiha public effects through contminated water.

7. Assessment of ecological and socio-economic impt of earth-moving- reshaping landspeR andw dum ng.

S. Overall vution and prorit-setfing. Pre-feasibi]ity studies and cost-benefit analyses for mitiga-tion measues.

9. Development of an Environmentl Master Plan for the Omuro area Ihe plan should include guide-lines for long-term environmental management, clear definition of critical remediation measureswith priorities, calculation of costs and tentative execution plans and proposals for financig.

IV. ANALYSIS OF ALTERNATIVS

Ihe rpmmende pioities for an Environmental Mtigation Plan will be critical to the success ofBoUvia!s new efforts to improve envimnment management of the mining and industial sectors andalso to lay the gromndwork for successful design and implemention of the future enviromentalprojects in these sectrs. The proposed areas of concentration are relatively disaeet and manageable,facors that are important given the limited resources, especialy instittional capacity, tha are avail-able in Bolivia. Other national planning issues, such as broader questions of land use and resource

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management. are too diffuse and involve toD many legal and institutional uncertainties to make themgood candidates for activities designed specifically for the mining and industrial sectors.

The Study Team recommends focusing on program design and implementation, rather an dratingnew legal requirements, for two reasons. First, there are already activities, including the JGF andETAP administered by the World Bank, to help with legal drafting - an activity that receives consi-derable donor support already. Second, future environmental improvements in the mining and indus-trial sectors will depend heavily on strengthening practical capabilites within Bolivia to identify envi-ronmental problems and carry out needed improvements.

As for the proposed regional pilot activity, Ormo seems by far the most suitable area. None of theother regions and ctues surveyed has a comparable mix of mining and industial activity affecting anearby, well defined urban area and an important ecosystem, including the special concerns of anindigenous trbe. The problems of Potosi are in many ways unique to that area because of its extremedependeace on mining. The problems of El Alto and La Paz are closely tied to complex urban plan-ning issues and have limited relation to curmnt mining activitics. Santa Cruz and Cochabamba alsolack a significant mining componenL Alluvial gold mining in parts of the Amazon basin locted inBolivia is anothfer unique case and it would be exceptionally difficult to monitor conditions there or tocany out an extensive mitigation program

V. ENVIRONMNTAL MANAGEMENT AND TRAINING

Building institutional capacity for environmental management is proposed as a centll aspect of allrecommended activities. Participants should be drawn from the public and private sectors, includinggovernment, commercial enteprises and organizations, umversities, reseach institutes, local communi-ties and NGOs.

VL ENVIRONM!ENTAL MONITORING OF RECOMMENDED ACTIVITES

Developing criteria and podues for monitoring environmental impacts o. the recommended activi-ties will be one of the tasks in designing speific prqects.

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PART 7: PUBLIC PARTICIPATION

The Study Team and Its Bolivin count- ts Consulted with a wide range of organizations within andoutside of governmenL A number of informal meetings were held vith the pnvate industry. represen-ted by the National Chamber of Industry, anl the National Association of Medium Miners. This toinform about the objective of the study, to hear the opinions of these organizations and to urge theseorganizations to ta active part in the imminent formulation of laws, regulations, and codes of conduLm

L SEMINARS

As an intgad pa of the study pmgram, two seminars have been held in La Paz: a) a three-dayseminar on Mining and the Environment", with the parlicipation of three lecturers from Sweden; b) atwo0-ay seminar regarding "Environmental questions within the non-mining industrial sector", withlecturers drawn from the SES team. The two seminats were a-rranged by SENMA. Each was attendedby about 60 professionals from the relevant sector. The seminrs included lectures within the foDow-ing main themes:

General subjects (in summary; for details see Appendix E[[)

* Mining opeaions and their envinmnental consequences* Measures for the protection of the environment in mining ventres* Legal, economic. and strategic means for Improving the prtection of the enviomet as rcla-

ted to mininga Environmental management and audits in the investigation of water quality in rivers and lakes* Regulation of industrial contaminations* Industrial occupational health and safety

Addressing Bo]ivian conditions

3 The environment In Bolivia, with case plesentations, international comparisons and reoommen-datiDns

* Environmenta laws and regulations as applied in Latin Ameica* Health and safety in Bohliv industr observations, international companisons and recommen-

dations* Panel debate concerning the Bolivian mining and the environment* One-day case exercise (in work groups) in planning an environmentaly satisfactory mining

operation based on crtain given, fictitious conditons

Extensive and engaged discussions accompanied the differnt poinls of presentation. All lectues werealso distributed in written form.

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EL CONSULTATIONS REGARDING THE FINAL REPORT

A daft Executive Summary and EA report (both translated into Spanish) wcre presented to SENMAin mid-Apil 1993. SENMA circulated the draft for review to morm t 40 diffeent organizadons thareprsented a vride diversity of expertise and intests (see Appendix III). These organizations weregiven two to tbree weeks to submit writn coomments on the drafL In lae May. core members of theStudy Team retuned to Bolivia to review these comments and onsult more closely with counterpansand others at meetings organized by SENMA: one in Cochabamba on May 20, 1993 (in connectionwith an inteational mining fair), with concentration on mining issues; and another In La Paz on May24. 1993. focusing on the manufaing industry. These meetings had 25 and 12 participants, respec-tively. Altogether 15 written comments have been received Ihe many valuable comments prxduced,as well as opinions presented in the discussions. have helped appreciably in improving the report

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PART 8: APPENDICES

OVERVIEW

Ths report is accompanied by he following appendices:

L Ls of EA peparers

11 Bibloerahy

mL Program of seminarslist of consulted organizations

IV. Techical appendices'2 (two separate volumes)

1. Regulating industrial poflution in BoUvia (Faith Halter)

2. Instumentos economicos aplicables a la gesti6n ambiental de la minerfa e industia en Bolivia(Marthadina Mendiz&bal de Finot)

3. Environmental laws and regulations related to mining and industry in Bolivia (Valeria Merino)

4. LabIatory facilities and capacities in Bolivia (Rudolf Reuther)

5. Estimate of costs of remediation of tailings dcm in Bolivia (Anders Swartling)

6. The woring environment in Bolivia; expeiences and impressions (Bengt Knaborg)

7. MbIning versus agricultue In the Andacaba-La Lava area (Bo Lundberg)

8. The Millum tailings dam as source of water for La Paz (Bo Lundberg)

9. Environmental concerns in the Oruro area and Lake Poopo (Bo Lundbe)

10. The environmental situation in Potosi (Bo Lundberg)

11. Envimental siunlion in Bolivian manufactring industry (Lm LTnnxr)

12. Envimnmental code of practice for mining ventures (Anders Swarting, Bo Lundberg)

13. Solid and hazardous waste disposal in Bolivia (Rudolf Reutber)

12Part IV of the Appendices are workig papers prepared by individual consultants during theEA process. In some instnces, they may not reflect the final conclusions of the Study Team, aspresented in this reporL

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APPENDIX I

SECrORAL ENVIRONMENTAL ASSESSMENT OF THE MINING AND INDUSTRIALSECTIORS IN BOLIVIA

LIST OF EA PREPARERS

The following personnel have taken part in the preparation of the Assessment:

CONSULTANTS PERSONNEL (Swedish Environmental Systems)

Bo Lundberg Mining spcialis (coordnatr)Lars Landner Industrial water specialstBengt Knaborg Industrial heaIlth & safty spcdalistRudolf Reuther Solid waste specalistAnders Swartling ndustrial economistFaith Halter Environmental regulatory spcialistValeria Meno Evir lawyer

COUNTERPART PERSONNEL

Guillermo Cortez Geologist (coordinator) MMMJulio LUanos Water specialist SENMAFreddy Olivera Waste management speciali SENMAHe-in Ferandez Civil engeer SENMAHugo Medina Industrial health & safety specalst INSOJos6 Leyton Lawyer SENMAJ*aP&ikL.- iWYL e. EcoIogi.t SENMA

SENMA LIAISON

Juan Carlos Enriques Director, Enviomental Quality Control SENMA

The final repart has been elaborated by the team with the following main sponsibihties:

Bo Lundberg Mining sectr, baseline data; general coordinationLars Landuer Industry (manufacturing) sector, baseli dataBengt Knaborg Industrial health & safetyRudolf Reuther Soid waste, laboratory capacty. mercary conminaonAnders Swarting EconomicsFaith Halter Policies and regulations; priority setting; executive summary; editingValeria Merino Legal and institutional framework

1

Support has been given by the coumLerpari team as well as by the following persons:

Marthadina Mendiz7b deFmot Bclivian economics and environmentSusanna Leyton Camardelle SociologyAdriana Walser Editing and traslations

2

APPENDIX II

SECTORAL ENVIRONMENTAL ASSESSMENT OF THE MINING AND INDUSTRlALSECTORS IN BOLIVIA

BIBLIOGRAPHY

Apaza, Roberto. 1992. Contamaon of lakes by mining efflueals. Seminario sobre Control de laContaminaci6n Ambiental Producida por la Industria Minera. La Paz, Bolivia.

Aramayo, Luis. 1992. Necesldad de estudio de impacto ambiental en las operaciones minems deCOMIBOL Seminaro sobre Control de la Contaminacifn Ambiental Producida por la IndustlaMinem La Paz, Bolivia.

Asociaci6n Nacional de Mineros Medianos. 1992. La minerfa boliviana 1991. La Paz, Bolivia.

Bateman, D. 1992. Background of the Bolivian Mining, Agdculture and Manuactuing Sectoras. Abrief note. The Wold BankL

Beveridge, M., Stafford, E., and Coutts, R. 1985. Metal concentrations in tihe commercialy exploitedfishes of an endorheic saline lalke in the tin-silver province of Bolivia. Aquacultmre and FisberiesMlanagement 1985.

BHveridge, K 1983. Un estudio de los niveles de merales pesados en el Lago Poopo, Bolivia. Informepar el Dm eo de Pesquerfas del Centro de desarollo Frestal.

British Columbia AMD Task Force. 1989. Draft acid rock drainage technical guide. vol 1.

Ckeres. J. M. 1992. Camiaci6n de aculferos por lixiviado de residLuos solidos urbanos: Caso de laCiudad de La Paz. Simposio sobr Rcursos Hidrios y Medo Ambiente, Codhabamba, pp. 211-219.

Cebem. 1992. Narcotafico y medio ambiente. Cuadernos del Cebem, No.5. La Paz. Bolivia.

CEMYD. 1992. Environmental management of miing companies in Bolivia: Implications forenvironmental and industrial policies aiming at sustainable growth in low income developing counties.Work in progress.

COMIBOL. 1989. Plan integral de saneamiento ambiental. La Paz, Dic 1989.

Coronado, F. 1992. Conini6n ambiental del Altiplano Central por acdvidaes minero-melturgicas. Simposio sobre Recu.s(s Hidricos y Medio Ambiente, Cochabamba, pp. 229-234.

1

Dfaz Benavente. J. 1985. La contaminaci6'n originada por la industria en Bolivia. Taller sobreContaminacifn del Medio Ambiente en Bolivia, La Paz, nov. 1985.

Dfaz Benavente, J. 1986. La contaminaci6n originada por la industria en Bolivia. Memoria del Sim-podo Ecol6gico: Impaao de Desarmllo en la Ecologla del Tr6pico Boliviano, Santa Cruz, pp. 43-69.

Dunan de la Fuente. H. y Castro, S. 1989. Impacto ambiental de la aaividad minera de Comibol enBolivia Informe para el Banco Mundial.

Fiseries Development LimitedL 1991. Fisberies Management Review, Bolivia. British OverseasDevelopment Administation.

Franken. M. y Sivlla, R 1992. Estdio limnologico de los dos del valle de La Paz en relaci6n a sucaldad de aguas. Ecologla en Bolivia. No. 19: 97-132.

Frankn, NI y Marnn, R. 1992. Influencia de una fabrica de estuco sobre un ecosistema acuatico en laciudad de La Paz. Emologfa en Bolivia No. 19: 73-96.

Garda Rivera, C. 1985. Contaminacidn amblental provocada por la industria metaldrgica instalada enBolivia Taler sobre Contaminaci6n del Medio Ambiente en Bolivia, La Paz, nov. 1985.

Gustavson Associates 1992. Compendium of the economic geology of Bolivia. Ministeio de Minerfay Metalurgfa, La Paz, Bolivia.

GutiEnez, Gualberto y Henmra. Jaime. 1992. Evaluaci6n de la agresividad de las aguas de copagira delCentro Minero San Jose en hormigones y suelos. Simposio sobre recursos biducos y medio ambiente.Cochabamba. Bolivia.

Hcrbas Vargas, R. y Velarde FlRos, R. 1985. Investigaci6n sobre la contaminaci6n originada pordesechos domnesticos en Bolivia. Taller sobre Contaminaci6n del Medio Ambiente en Bolivia, La Paz,nov. 1985.

Hcrail, G. 1988. Los yacimientos de oro de Bolivia: Conecxto geol6gico y genetoo. Actas de segundoSimposio de la Investigaci6n Francesa en Bolivia, pp. 10-16.

Ministerio de Urbanismo y Vivienda. 1990. Reglamento sobre lannmiento de desechos industriales encuerpos de agua. La Paz, Bolivia

Montes de Oca. Ismad. 1989. Geograffa y recursos natres de Bolivia. La Paz. Bolivia.

Municipalidad de Oruro, 1992. Plan de la gran reservaci6n lastre, flora y fauna del depaqamento deOniro. Oruro. julio 1992.

Nolan. Davis & Associates. 1988. An environmental overview of the mining sector in Bolivia. Repoatto The World Bank.

2

Noas, P., Solis, G. and Torrico, Vilma. 1992. Impact of the minerals industry on the eaviromnent insome areas of the depaitments of Oruro and Potosi. Bolivia: A preliminary study of stram waters andsediments. Ministerio de Minerfa y Mctalurgfa: Proyecto de RchablUtacion del Sector Minero. InformeBO-92005.

Pachec, M. G. 1992. Estudio de contaminacidn de recursos hidricos y edafol6gicms en elDepartamento de Potosi. Simposio sobre Rccoursos Hidricos y Medio Ambiente, Cochabamba, pp.235-246.

P(fyry. 1. 1992. Establishment of a National Environmental Information System (NEIS), June 26. 1992.The World Bank.

Quintanilla Aguiffe, J. 1988. La bidroqulmica del Lago TMticaca y su relacioa con el plancton. Actasde Segundo Simposio de la Investigaci6n Francesa en Bolivia, pp. 114-125.

Quintea, CE 1991. Bolivia-s National Fund for the Environment A joint public-private effort toorganize the investment in the environment FONAMA, nDv 1991.

RIos Paz Solddn. C. 1985. Investigaci6n sobre la co i6n originada por la mineria en Bolivia.Taller sobre Contamindn del Medio Ambiente en Bolivia, La Paz. nov. 1985.

SAGUAPAC, 1992. Resumen sobre el estado de las plantas de rAtamiento de SAGUAPAC, SantalCruz.

Salinas, Javier. 1993. Estudio elaborado pam el Plan de Acci6n Ambiental de Bolivia. Informe par laSecretaria Nacional del Medio Ambienoe. La Paz, Bolivia

SAMAPA, 1990. Memoria Anual 1990, Serviciao Autonomo Municipal de Agua Potable yAlcantaillado, La Paz.

Schollaert, A 1992. Contaminact6n de aguas por la explotaci6n miners en las regiones de Uncia yOtavi. Simposio sobre Recursos Ildricos y Medio Ambieate, Cochabamba, pp. 221-228.

SEARPI 1991. Proama de protecci6n contra las inundaiones - Santa Cruz. Plan diectivo de lacuenca del Rfo Piraf. Anexo VHI: Estudio de contaminaci6n- Servicio Encauzamniento de Aguas yRegularizaci6n del Rlo Piraf Sama Cruz. Junio 1991.

SEGMA-PAAB. 1992. QnU camno debemos andar. Elements para una poUtica ambientai boliviana-Secmtarfa General del Medio Ambiente, La Paz.

SENMA. 1992. Taller Nacional de Planificaci6n Ambiental. Polftcas Nacionales de Gesti6nAmbiental. Cochabamba, 19-21 aug. 1992.

Sociedad Boliviana de Ecologla. 1983. Mesa Redonda sobre Contaminaci6n de Aguas, 6-8 abril 1983.La Paz

UNEP. 1991. Environmental aspects of selected non-ferrous metals ore mining. Paris.

3

Urqiidi, M. 1986. Petroleo y medio ambiente. Memoria del Simposio Ecol6gico: impacto delDesarrollo en la Ecologfa del Tr6pico Boliviano, Sana Cmz, pp. 33-42.

Waldo Pearanda C. 1985. Enfoque genral de lat contaminaci6a ambiental. Taller sobreContzznnaid6n del Medio Ambiente en Bolivia. La Paz, nov. 1985.

Wasson, J.G. y Mann, R. 1988. Pnimeros dacs para una tipologfa ecologica de los rlos de alura en laregion de La Paz Actas del Segundo Simposio de la Investigaci6n Francesa en Bolivia, pp. 127-142.

Wheeler, D. 1992. The Economics of Industridal Pollution Control. An ltemallona Parspectve. TheWorld Bank

4

APPENDX III

SECTORAL ENVIRONMENTAL ASSESSMENT OF THE MINING AND INDUSTRIALSECTORS IN BOLIVIA

1. Program for seminar regarding mining and environment, 27-29 January, 1993

2. Program for seminar regarding industial contamination and occupational health andsafety, 11-12 February, 1993

3. List of organizations consulted during the environmental assessmentwork

1

"PRIMER TALLER DE CAPACITACION SOBRE MINERIA Y MEDIO AMBIENTE"

SECRETARIA NACIONAL DEL MEDIO AMBIENTEMINISTERIO DE MINERIA Y METALURGIA

FONDO NACIONAL PARA EL MEDIO ANBIENTEAGENCIA DE COOPERACION SUECA

del 27 aL 29 de enero 1993

PROGRAMA

DIA 1 /27-1-93 / SALON JACARANDA - PLAZA HOTEL

8:00 Registro e inscripci6n de participantes8:30 Acto Inaugural: Palabras del Sr. Ministro de Mineria

y Metalurgia,Inauguraci6n del Sr. Gerardo AguirreMinistro Secretario Nacional del Media Ambiente

Presentacion de objetivos y metodologlaVer6nica L6pez A.

9:00 OPERACIONES MINERAS Y SUS CONSECUENCIAS AMBIENTALES

Presentacifn del tema:Impactos ambientales de laMineria : Dan Nilsson- introduccion y antecedentes- panorama de los imipactos ambientales- desarrollo tdcnico y econ6mico- consumo de energia- reciclaje

9:45 Preguntas y respuestas

10:00 Receso

10:20 Presentaci6n del Tema: Emisiones provenientes de laMineria y del Procesamiento de Minerales: Per Broman

- emisiones de agua y aire, ruidos, vibraciones,etc.- mineria a cielo abierto y subterrAnea- concentracion de minerales- fundici6n de los concentrados- refinaci6n de metales

11:15 Preguntas y respuestas

11:30 Presentaci6n del Tema:Emisiones de Residuos : TomLundgren- ubicaci6n de los deshechos mineros- drenaje Scido de mina- estudio de casos

12:15 Preguntas y respuestas

2

12:30 Receso

14:30 MEDIDAS DE PROTECCION AMBIENTAL EN MINERIA

Presentaci6n del Tema: Protecci6n Ambiental en laOperaci6n Minera : Per Broman- proceso de purificaci6n del aire- tratamiento de aguas- control del polvo, ruidos y vibraciones

15:15 Preguntas y Respuestas

15:30 Presentaci6tn del Tema: Previsi6n del Drenaje Acido dela de Mina : Tom Lundgren- proceso de meteorizaci6n- pruebas de laboratorio y a pequefha escala- la influencia de los hidrSulicos- Evaluaciones

16:15 Preguntas y Respuestas

16:30 Receso

17:00 Presentacion del Tema: Costos y Rentabilidad de laProtecci6n Ambiental: Dan Nilsson- costos de la protecci6n ambiental- introduccion a la teoria de inversi6n y estudios derentabilidad de las medidas de protecci6n ambiental- contabilidad ambiental nacional

17:45 Preguntas y respuestas

18:00 Presentacin de videos sobre la tematica

18:30 Fin del Primer dia

DIA 2/ 28-1-93

8:30 Presentacion del Tema: Protecci6n ambiental en Mina yDisefio de la Planta : Dan N'.lsson- limites y profundidad del tajo abierto- mineria de superficie y subterrarnea- nuevos mentodos de mineria- selecci6n de equipos- disefio de la planta

9:1F Preguntas y respuestas

Presentacion del Tema: Protecci6n ambiental en elprocesamiento de minerales : Per Broman- proceso de purificaci6n del aire- tratamiento del agua- secado de concentrados

3

- lixiviaci6n- procesos de fundicifr y refinaci6n- control del polvo, ruidos y vibraciones

10:15 Preguntas y respuestas

10:30 Receso

11:00 Presentaci6n. del Tema: Medidas de Prevenci6n contra elDrenaje Acido de Mina : Tom Lundgren- posibles medidas para contrarestarlo- desviaci6n de las aguas limpias- recolecci6n y tratamiento- coberturas secas y h(umedas

11:45 Preguntas y Respuestas

12:00 Receso

14:30 MEDIOS LEGALES, ECONOMICOS Y ESTRATEGICOS PARAREFORZAR LA PROTECCION AMBIENTAL

Presentaci6n del Temna: Medios Econ6micos yRegulaciones Gubernamentales : Dan Nilsson- politicas ambientales- legislaci6n y penalidades- nedios economicos

15:15 Preguntas y respuestas

15:30 Presentaci6n del Tema: Estrategia de Reducci6n de laPoluci6n Existente : Tom Lundgren- ninas abandonadas- clausura de minas- programas de monitoreo

16:15 Preguntas y respuestas

16:30 Receso

17:00 Presentacion del Tema: Programas para las EmpresasPer Broman- organizaci6n- monitoreo- auditoria- informaci6n

17:45 Preguntas y respuestas

18:00 Panel de Discusi6n: Posibles Estrategias paraimplementar y Reforzar la Protecci6n Ambiental enBolivia.

18:30 Fin del segundo dia.

4

DIA 3/ 29-1-93

8:30 Organizaci6n de Grupos:

Tema: Preparaci6n de un Plan de Protecci6n Ambientalpara una Compafiia Minera o Proyecto Minero.

Grupo 1: PlanificaCi6n de un Nuevo Proyecto MineroResponsable: Dan Nilsson.

Grupo 2: Planificaci6n de la Protecci6n Ambiental enla Mineria y en el Procesamiento de Minerales.Responsable: Per Broman

Grupo 3: Planificaci6n de la Ubicaci6n de Residuos yel Cierre de Minas.Responsable: Tom Lundgren

9:00 Trabajo en grupos

10:30 Receso

10:50 Continua el trabajo en grupos

12:30 Receso

14:30 Plenaria: Presentacifn de los resultados de los gruposde trabajo.

Grupo 1: InformeDiscusi6nRevisi6n

15:15 Grupo 2: InformeDiscusi6nRevisi6n

16:00 Grupo 3: InformeDiscusi6nRevisi6n

16:45 Receso

17:00 Acto de Ciausura: Palabras de los Sres. Ministro deMineria y Metalurgia: Ing. Alvaro Rejas, y MinistroSecretario Nacional del Medio Anbiente Sr. GerardoAguirre Ulloa.

WORKING SESSION (A)

Task: Preparation of an environmental protection plan for a mining comp.or a mining project

AN ENVIRONMENTAL PROTECTION PLANThe knowledge of the pollution sources and the processes generating thepoUutions forms the basis for an environmental protection plan.

An environmental protection plan may consist of the following units:

* Survey of potential pollution sources and existing "backgroundconditions"

* Description of the processes generating the potential pdllutions* Charting of objects sensible to the potential pollutions* Prioritizing subjects for protective measures* List of potential protective measures* Setting the objectives for land reclamation/future land use plans* Recycling possibilities and water saving measures* Energy consumption calculations and fuel alternatives* Description of other potential protective measures* Cost estimates for protective measurese Prioritizing protective measures* Time plan and budget for conducting a protection plan* Management of the protection plan - organization, impact on the

operations, payment schedule, etc.* Monitoring program

The taslc

Due to the short time available, the working session task has to be restrictedis confined to some of the most important measures which are actual at theplanning stage of a new mining project. The objective is not that theparticipants shall give thorough and detailed descriptions of an EP-plan andmake correct calculations but they should report the basic ideas behind suchplan and implement some evaluations on the operation related to theenvironment.

2

Ore. rr:ining capacity Porphyry Copper Ore, 5 Mions of ore/year

Geology Gneisses and quartzite form the main part of the bedrock. Calc

practically non-existent. Chalcopyrite is the only mineral of

economic importance and occurs together with pyrite, magnet

and pyrrhotite. The mineralization occurs mainly as

disseminations and stringers in the bedrock.

The ore has a length of about 1,000 m and a width of 200 m. Th

surface area is 500,000 m2 with an average grade of 0.7 % Cu.

The ore dips at 600 from the horizontal plane.

Overburden is some 10 m till above scattered sublayers of sand

The till is partly clayey and covered by peat in some local

depressions of the basement.

Ore reserve Mine planning has resulted in three different alternatives witl

the following total ore and waste quantities (mill tons):

Waste and Incremental

Ore Overburden Stripping Ratic

Alt. 1 30 30 1:1

2 60 75 1:1.5

3 90 135 1:2

Optimum alternative is to be selected.

AMD-properties Testing has revealed that footwall rock partly consists of rock w

insufficient pH-buffering capacity. Disposal of that rock without

any preventive measures is likely to result in acid-rnine-draina.

The amount of AMD-producing waste rock< is 20 % of total wast

rock quantity. Tailings from processing of the ore will also havw

AMD-producing characteristics.

3

Mining method, The ore is to be mined in open pit.

transport andstockpiling Waste rock will be transported by trucks.

Ore will first be transported by trucks to a primary crusher on tH

surface. Later, when mining has reached deeper benches, an in-

crushing and conveying system can be constructed, driven by

electricity from a water power station in the area.

The price for diesel-fuel is today low, but the government plans

introduce a carbondioxide charge on top of the price for diesel f:

to reduce the use of fossil fuels in the contry.

The type of haulage system for the fiuture is to be recommendes

Crushed ore wlill be conveyed to a stockpile.

Waste rock disposal Waste rock will be disposed off in an area to be selected.

Processing Processing will take place in a concentrator the siting of which i.be selected. Crushed ore will be fed into a two-stage autogenous

grinding system with spiral classifiers and hydrocyclones. Cyclo

overflow will be piped to conditioners ahead of flotation and

further flowing by gravity into copper rougher flotation banks

followed by copper scavenger flotation banks. Rougher concenti

will be pumped to cleaners, set up in three cascade stages. Roug.

reject and scavenger concentrates will be reground in a ball mill

operating in closed circuit with a hydrocydone, the overflow of

which will be returned to the conditioner ahead of the copper

roughers.

Process water consumption is estimatec at 4 m 3 /ton of ore.

Flotation reagents used will be slaked lime (1 kg/ton of ore),

sodiumisopropanylxanthate (15 g/ton of ore) and MIBC (5 g/tor

ore).

4

Concentrate will be thickened in round thickeners and dewaterein a way to be selected. The amount of concentrate (dry weight) i.

percent of ore feed.

Tailings will be pumped to an area to be selected. Disposal is to b

made by a method to be selected.

Concentrate shipping Concentrate is to be surface transsported to a smelter at a distance200 km. Mode of transportation is to be selected.

Water management The annual net precipitation (precipitation minus evaporation):500 mm. Water is not scarce but the mine is in an ecologicallysensitive area with a demand on mirnimum raw water rccovery well as process water discharge. A water management systemshould be selected for that purpose.

The quantity of water discharged from the area should not exceecthe runoff quantity. The water treatment installations should be

designed and dimensioned to meet the following dischargequality criteria: pH 7-8, dissolved copper 0.02 mg/i, TSS <5 mg/l.

Surrounding Not far from the mine site is a valley with active farming.Through the valley flows a river with an average flow of 50 m3/ssupplying the farming area with water for the agriculture andstock as well as drinking water. Waters upstream the mine isunaffacted by human processes. Some 15 kIn downstream the

mine there is a small town using the surface and ground watersfor drinking purpose. A side valley is stretching up to a plateauclose to the mine. See attached map.

Monitoring A monitoring program for air and water quality related to fish an

wildlife is going to be established-

The exercise task could be summerized into the followingsubtasks:

5

1. Siting of units

- deposit of waste rock- concentrator- tailings impoundment

2. Selection of methods

- incremental stripping ratio in mining- water management- concentrate dewatering- transportation mode for concentrate- disposal method

3. Design of systems

- Xvater treatment- monitoring program

ao 0a

S.~~~~~~~~~~~~~~~~~~~4

I km ~~Sketch map ofthesite

LA CONTAMINACION INDUSTRIAL7 Y LA SALUD OCUPACIONAL

Hotel Plaza

PROGRAMA

DIA I, jueves 11 de Febrero

ANTECEDENTES

8:30 Presentacifr del tema: Utilizaci6n de recursos y la saludocupacional en la industria manufacturera. (Lars Landner)

9:30 Preguntas y respuestas

9:50 Receso

10:20 Presentaci6n del tema: Manejo y auditorias ambientales enla industria. (Lars Landner)

11:20 Preguntas y respuestas

12:00 Receso

14:30 Presentacion del tema: Regulaci6n de la contaminaci6nindustrial, (FaithHalter)

15:15 Preguntas y respuestas

15:30 Presentacifn del tema: Regulaci6n de la contaminaci6nindustrial, la coordinaci6n institucional. (ValeriaMerino Dirani)

16:15 Preguntas y respuestas

16:30 Receso

16:50 Presentacifn del tema: La salud ocupacional en general yel caso de Suecia. (Bengt Knaborg)

17:35 Preguntas y respuestas

18:00 Receso

DIA II, viernes 12 de Pebrero

PLANIFICACIONI Y EJECUCION DE MONITOREO AEBIENTAL E IRITERPRETACIONDE RESULTADOS

8:30 Presentacion del tema: Investigaciones sobre calidad delagua en rios y lagos; estudios con relaci6n. al uso deefluentes para irrigaci6n. (Lars Landner)

9:30 Preguntas y respuestas

10:00 Receso

10:20 Presentacifn del tema: Estudios de Impacto Ambiental,alcance y temas. (Lars Landner)

11:20 Preguntas y respuestas

12:00 Receso

14:30 Presentacion del tema: La salud ocupacional en Bolivia,observaciones y prioridades. (Bengt Knaborg)

15:15 Preguntas y respuestas

15:30 Presentacion del tema: El medio ambiente en Bolivia yotras regiones importantes, estudio de casos, propuestade soluciones. (Lars Landner)

16:15 Preguntas y respuestas

16:30 Receso

16:50 Discusi6n General, presentacion de informaci6n.

17:30 Preguntas y respuestas

18:00 Receso

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