The mining company Empresa Minera Inti Raymi S.A.
is a joint venture between Newmont Mining Corporation,
which owns 88 percent, and private capital
with 12 percent. Its main mine deposit Kori Kollo, is
located in the Andes plains 200 kilometers (125 miles)
southeast of the city of La Paz (Bolivia) and 45 kilometers (28
miles) northwest of the city of Oruro.
The mine is located
3,710 meters (12,120 feet) above sea level.
Of the 70,000 hectares (172,974 acres) held in mining
rights by Inti Raymi, only 7,000 hectares (17,297 acres)
of surface area were used for exploration and gold mining.
Since operations began in 1984, the mine produced
3.4 million ounces of gold and employed between 400 to
950 people.
It contributed $240 million to the Oruro local
economy. While Kori Kollo’s ore reserves have been
depleted and the mill officially closed in October 2003,
the company is starting the construction of Kori Chaca
project, located 5 kilometers (3.1 miles) west of Oruro.
Construction is planned to begin during the second quarter
of 2004, with gold production starting by the end of the
year. The project is projected to produce 224,000 ounces
of gold.
Although mining operations ceased in Kori Kollo
October 2003, mineral extraction from low-grade
deposits continued through 2005. Newmont will
remain a strong presence in the community, largely by
training residents and businesses how to achieve economic
success in the absence of the mine.
The operation spent $33 million to outsource goods
and services in 2003. Payroll and labor costs amounted
to $7.4 million. Contractors made $977,000. With the
mine’s closure, more than 300 employees were laid off.
Another 87 local miners from La Joya and several trucking
companies were impacted as well.
Kori Kollo paid $755,000 in taxes to the Bolivian
government. It also paid $2.7 million in royalties, mining
taxes and mining-right fees to various local governments.
To help local residents absorb the loss of Newmont
operations, economic-impact and economic-development
plans are underway. The mine’s closure plan calls for
transferring all buildings and other infrastructure to the
communities of Villa Chuquiña and La Joya by 2008. |