Growing demand for regulation of the mining industry across regions

The involvement of provincial and municipal mayors in the country in state control of mining activities within their jurisdictions has been highlighted by analysts and governors. Mining operators pay taxes Profits, and the provinces collect royalties.

Héctor Córdova, a mining expert at the Jubileo Foundation, recalls that the authorities of the Potosí department had already implemented this type of control over the payment of royalties some time ago, with good results. Bolivian Amazon “I see some difficulties (in its application) because of the fragmentation of the business and the involvement of communities with mining operators.”

He added that if control was left to the municipality or province, then some measures could be taken, but to do that metal detectors would have to be installed, for example at doorways.

About Him The gold industry’s tax contribution, For example, Cordoba points out that it is “small” because we are talking about an average of 2% of the value of the gold that leaves Bolivia and that the operators leave for the state. “Since they do not pay taxes, everything is limited to 2%, which is the lowest contribution of all metals to the Bolivian state, but gold is the metal we export the most,” he added.

He added that it was an “unfair situation and exploitation of the Bolivian state” by operators who were evading responsibility and evading the law, which imposes a 7% royalty and Tax, If it is a cooperative, it is 25%; if it is a company, it is 37.5%.

A few days ago, the national government presented provinces and mayors with a law calling for the creation of an intergovernmental panel to regulate mining activities and collect taxes from operators.

In contact with the Governor of Tarija, EL DEBER, Oscar Montes, Oscar Montes says the rules are necessary An agreement will be reached by the end of the month.

“Many mining activities cause harm to humans, especially by polluting aquifers and damaging the environment. There is also illegal mining that is not taxed, and some precious metals, such as gold, are diverted through illegal channels,” the agency added.

He added that the proposal is interesting because provinces such as La Paz, Oruro and Potosí are doing well economically because of the high mining activity. Meanwhile, provinces like Tarija, which received gas funds, are seeing a significant reduction in their revenues when the gas runs out. “We are interested in controlling mining activities so that they can generate resources for us in times of crisis,” he said.

Economist Jaime Dunn believes that the proposal is feasible and could be positive because it is a measure that could improve the regulation and oversight of mining activities, especially in gold mining, “which raises environmental concerns.”

He added that the establishment of an intergovernmental team would help collect taxes and royalties in accordance with the law and ensure that economic benefits were more equitably distributed.

“We must also review Bolivia’s tax and royalty issues to reflect a strong state. Regardless, we want to do things that can help mitigate environmental damage, promote more sustainable mining practices, and strengthen governance and transparency.”

Within this context, economist Martin Montero said that greater decentralization in natural resource management could improve oversight, but that it would require adequate coordination to avoid conflicts of authority, with mayors and governors having technical and financial control over resources.