Bolivia cracks down on illegal mining after fatal explosion

Bolivia's government began clamping down on illegal mining in the central Andes after last week's blast at the Huanuni tin mine left nine workers dead and at least 11 injured.

The armed forces have been ordered to seal illegal mine entrances near the state-operated Huanuni mine in Oruro department, interior minister Carlos Romero said. State mining company Comibol will reinforce security at the mine with 500 members of the armed forces, he said.

Mining federation officials claimed the April 11 explosion was set off by mineral thieves known locally as jukus in reprisal for tighter controls aimed at preventing theft from the underground mine. A military operation this week seized 3.2t of stolen mineral and arrested three alleged mineral thieves in the area.

"Intelligence has reported the existence of more than 30 clans with 1,500 members involved in mineral theft in Huanuni," Romero said in broadcast comments. "We don't plan to militarize the area, but we will reinforce security with military personnel."

The Huanuni mine was shut for two days last week, costing an estimated US$200,000 in lost production, according to Comibol. Mineral theft at the mine, declared to be in a state of emergency last year, is costing the company an estimated 2mn bolivianos (US$280,000) a month, equivalent to about a third of its production.

Illegal mining has spread in the Andean region as metals prices surged, with tin prices jumping 38% over the past two years on the LME to US$21,700/t this week.

Comibol las launched an investigation into the cause of the explosion, which adds to a host of problems at the company in recent years, including the closure of the Karachipampa and Vinto smelters as well as its El Mutún iron-steel company due to technical problems and falling metals prices.

Operations at Huanuni were also halted by a strike in July 2017 as workers protested against plans to reduce the company's workforce and charge more for electricity. Huanuni produced 7,084t tin in 2016, down from 7,695t in 2015, according to the company's website.