Organisation of the Mining Sector

There are many key players in the Bolivian mining sector, which fall into five stakeholder groups, namely the government, individual mining companies, mining sector groups, organised labour representation and non-governmental organisations (NGOs). The component parts of these categories and their interrelationships are illustrated in Figure 6.1. However, this figure cannot portray changes over time in the influence of, and relationship between the different component parts that make up the mining sector.

When evaluating the key stakeholders in the mining sector and their relationships, it was apparent that there was good agreement between information gleaned from the literature review and in-country observations. The only difference was that documented research does not currently make much reference to the recent dramatic growth in private mining operations managed by trans-national mining corporations.

Significant changes in stakeholder relationships since 1985 have been the declining involvement of the State in mining activity, the declining power of the mine workers union, and a corresponding growth in the importance of mine worker co-operatives. These trends were identified in the literature review and confirmed by information collected during the in-country data collection.

The government still dominates the national mining scene, with the Ministry of Mining and Metallurgy setting sector policy and COMIBOL playing a pivotal role in the interface between the government and

Figure 6.1 Stakeholder Relationships in the Bolivian Mining Sector Source: Author

mine operators. COMIBOL administers all aspects of mine access, extraction and mineral export, and its current focus upon attracting foreign investment for large scale mining operations has led to a reduced interest on the mine worker co-operatives. However, another dynamic within government is that the Vice-ministry of Co-operatives is starting to become more involved in the issues that challenge mine worker co-operatives, and the Direccion General de Cooperativas is currently considering future policy initiatives. Mine worker co-operatives have experienced rapid growth in their number and membership since 1985, and remain a significant contributor toward production and employment in the Altiplano mining sector.Although the government does not have data available to describe long term trends in the number and membership of mine worker co-operatives, FENCOMIN data for 2008 to 2010 (see Figures 6.2 and 6.3) show recent strong growth in both the number of mine worker co-operatives (by 42%) and their total membership (by 31%). However, the number of artisanal mine workers witnessed during the

Figure 6.2 Mine Worker Co-operatives Affiliated to FENCOMIN Source: Penaloza 2011 (see Table 3.6)

Figure 6.3 Membership of Mine Worker Co-operatives Source: Penaloza 2011 (see Table 3.6)

fieldwork was significantly lower than the number of mine workers, at all sites visited. This observation challenges the validity of FENCOMIN statistics.

Several researchers identified the tension between state mine workers and cooperativistas, which has been attributed to State mine workers enjoying better employment conditions, income and security than cooperativistas (Bebbington et al. 2008a, Gill 1997, Andean Information Network 2007, The Internationalist 2007). This was confirmed during the fieldwork, as Relaveras at Mina Huanuni currently earn approximately double the national average wage, while mine workers at Mina Huanuni earn even more. However, Relaveras and managers working with Empresa Mina Huanuni revealed that “Some cooperativistas working on piece rates are currently earning higher incomes than their State sector

counterparts, due to record high tin prices” (interview #8). Consequently, tensions between the two

groups appear to have reversed, with State miners currently involved in protests to demand salary increases.

The national mine worker union (FSTMB) has lost members due to the declining number of mine labourers, and has lost influence due to the recent rise of the petrochemical sector as Bolivia’s main export earner. The decline in the FSTMB’s political influence was evidenced by mine workers aligning themselves with the general workers union (COB) during recent anti-government protests, whereas in the past, they had sufficient critical mass to protest in their own right. While the mine workers union is in decline, the national body for mine worker co-operatives (FENCOMIN) appears to be becoming a more prominent vehicle for liaison between mine workers and the government as its membership grows strongly.

The recent re-emergence of international mining companies has come in response to a strong and sustained increase in world demand for industrial metals, and a period of relative stability in Bolivian politics, and government policies that encourage overseas investment in the sector. This has led to growing relationships between the government and overseas mining corporations, but appears to be alienating communities and artisanal mine workers. Furthermore, such mining operations tend not to employ labourers, preferring instead to use qualified engineers and technicians to monitor and maintain the mining and processing plant. Although modern, large scale mining operations look set to dominate future production in the Altiplano, very few women in Bolivia train as engineers, and so are unable to participate.

Women mine workers do not currently have a national representative body, so their intersts are currently served by a combination of small stakeholder orgainsations, including the Viceministerio de la

Mujer (Vice-ministry of Women), the National Housewives Committee (Comite Nacional de Amas de

Casa), the annual national encounters of women mine workers (encuentras nacionales), the national

mine workers union (FSTMB) and NGO activities which focus on women’s needs. However, themes such as gender equality, women’s rights and feminism are currently gaining greater recognition across Bolivia.

NGOs such as CEPROMIN and EMPLEOMIN are becoming increasingly involved in projects that benefit mine workers and communities, such as environmental improvement and institutional strengthening. They are particularly focused upon assisting women mine workers, with projects including re-training Palliris, providing them with mechanical crushing plant, and providing education in women’s rights. However, mine workers still treat many NGOs with suspicion as there have been many promised projects that secured funding but never eventuated, while some NGO projects have been misguided (interview #24). It is interesting to note that the major recent NGO projects focus upon assisting women mine workers (e.g. EMPLEOMIN, Cumbre Sajama, Project Sajama), despite them representing less than 3% of sector employees, and exhibiting a rapid decline in their numbers.