By Aurora Lane | 2023-10-05

LA PAZ -- Chinese entrepreneurs arrived in Bolivia in 2018, bringing their machinery to prospect for gold. Five years later, after they employed deceptive practices and exploited protected areas, more than 43,000 hectares of the Bolivian Amazon are now ravaged.

An investigative report by the Environmental News Agency (ANA) of Bolivia, published on September 28, sheds light on the alarming destruction occurring along the banks of the Kaka River in the La Paz department, a critical part of the Amazon.

Five years ago, Bolivia declared mining activity illegal in this tributary, which stretches from the confluence of the Mapiri and Atén rivers to the vicinity of the Beni River.

However, licenses covering a total of 1,722 grids, known as the unit of measurement for mining concessions in Bolivia, each spanning 25 hectares, have been granted by the Mining Administrative Jurisdictional Authority (AJAM).

To extract gold, Chinese businesses form partnerships with local cooperatives through internal agreements known as service provision contracts. These contracts allow foreigners to exploit the mineral in grids that AJAM originally granted to Bolivian cooperative members.

Mercury contamination

Under this arrangement, the Chinese pay reduced royalties to the Bolivian state and allocate a small percentage, usually ranging from 25 to 30%, for the locals, while they retain the remaining lion's share, as highlighted in the ANA report.

"There are legally established cooperatives consisting of Bolivians, including locals from Mayaya, so they [Chinese] exploit the resources through these cooperatives," stated Hilarión Mamani, the deputy mayor of Mayaya, in an interview with the independent media outlet.

The investigative report showed that the dredging operations severely contaminate rivers with mercury that eventually transforms into methylmercury. This toxic substance poisons fish, a staple in the diet of indigenous populations residing in the lowlands north of La Paz.

Moreover, these operations result in extensive deforestation, displacing wildlife as well as indigenous and peasant communities. The dredging machinery's proximity to riverbanks contributes to landslides and encroaches on land used for community farming, leading to a loss of vital farmland.

"Riverbanks with beaches have turned into gold-bearing zones, resulting in considerable soil degradation," Mamani said.

Illegal mining

During a boat expedition from Rurrenabaque in Beni to the adjacent municipality of Teoponte, which skirts national parks, indigenous reserves and ecologically sensitive areas, the ANA tracked more than 40 gold exploitation zones.

These areas host a significant presence of illegal mining, with more than 20 Chinese dredgers spotted.

The media outlet made several attempts to obtain a response from government authorities, particularly AJAM, but received no response. However, following the report's publication, AJAM demanded that ANA disclose all the sources used in compiling the report. Disclosure would violate Bolivian laws concerning the protection and confidentiality of journalistic sources.