Bolivia - Sectoral environmental assessment of the mining and industrial (manufacturing) sectors (Vol. 2 of 4)

BOLIVIA: SECRETARIA NACIONAL DE MEDIO AMBIENTE MINISTERIO DE MINERIA Y METALURGIA Swedish Environmental Systems SECTORAL ENVIRONMENTAL ASSESSMENT OF THE MINING AND INDUSTRIAL (MANUFACTURING) SECTORS FINAL REPORT June 1993  CONTENTS TABLE OF CONTENTS TABLE OF ACRONYMS EYECUTIVE SUMMARY PART 1: INTRODUCTION I BACKGROUND 1 1 PROJECT DESCRIPTION 2 A Terms of refemnce and obiectives 2 B Methodology 2 PART 2: BASELINE DATA I GEOGRAPHY 4 II GEOLOGY AND MINERAL RESOURCES 4 HII HYDROLOGY AND WATER RESOURCES 9 IV AREAS OF ECOLOGICAL SENSITIVITY 10 V DEMOGRAPEHCS AND SOCIO-ECONOMIC CONDMIONS 14 A The indigenous population 14 B Soclo-economic data 15 PART 3: POLICY, LEGAL AND INSTITUTIONAL FRAMEWORK I ORGANIZATION OF TlE STATE 16 A Branches of government 16 B Key ministies 16 C Major legal instruments 17 II ECONOMIC POLICY 18 m NATIONAL POLICIES, LAWS AND INSTIMONS FOR ENVIRONMENT 19 A General aspects 19 B The National Envaomeal Law of 1992 20 C The N-aional Secretariat for the Environment (SENMA) 21 D The Departmental Councils for the Envinment (CODEMAs) and Departmental Seaetariats for the Envirnment (SEDEMAs) 23 E The National Environmental Fund (FONAMA) 23 F The Bolivian Environmental Action Plan (PAAB) 24 G Laboratory and monitoring capablities 24 IV ENVIRONMENTAL IMPACT ASSESSMENT 25  v USE OF LAND AND NATURAL RESOURCES 25 A Planning and developmcnt in gcneral 25 B Urban development 26 C Rural development 27 D Water resource management 27 E Potable water and sanitation 28 VI EVRONMENTAL QUALITY 30 A General aspects 30 B Water quality 30 C Solid waste management 31 D Hazardous waste management 31 E Pesticides 3 1 F Air pollution 32 G Selectng regulatory instnunents for environmental management 32 H Human resources 33 Vll OCCITPATIONAL KFAI TH AND SAFETY 33 A Legislation of occupational health 33 B Institutional framework for occupational health 34 VII FOREIGN ASSISTANCE 36 PART 4: ASSESSMENT OF THE MINING SECTOR I NDUSTRIAL STRUCTURE 37 A Historical perspective 37 B Resrucuiring of the national Corporcidn Minema de Bolivia 37 C Major categories of hard rock mining 38 II POLICY AND LEGAL FRAMEWORK 44 A Economiclegal reform and the mining sector 44 B Mining and enviromnment 44 C Responsible government institutions 45 m ENVIRONMENTAL CONCERNS 45 A General aspects 45 3 Restructuring of the mining sor and its environmental consequences 47 C Use of land and naural resources 48 D Land degradation 49 E Environmental pollution 49 F Special conmers related to alluvial gold mining 59 IV OCCUPATIONAL HEALTH AND SAFETY 61 A General aspects 61 B Industrial mining 63 C Small scale and coopmrativc mining 63 v SOCIAL lMPACTS 64 A General aspects 64 B Effects of mining on Andean social structures 65 C Effects of mining on social structures in the Amazon 65  VI REGIONAL IMPACTS 66 A Genral apects 66 B Potosi area 67 C OnLrv alea 71 D Quechisla area 74 E Boivian Amazon Basin 75 PART 5: ASSESSMENT OF THE INDUSTRLIAL (MANUFACTURING) SECTOR I INDUSTRIAL STRUCTURE 76 A Historical perspective 76 B Major categories of industrial vzfivity 76 11 C POLICY, LEGAL AND INSTITUTONAL FRAMEWORK 80 A Econonmc/legal reform and the industrial sector 80 B industry 2nd eavironment 81 C Responsible govemment institutions 81 m ENVIRONMENTAL CONCERNS 82 A General aspects 82 B Use of land and nanual resources 84 C i and degradation 89 D Fnvironmental pollution 89 IV OCCU1PATIONAL HEALTH AND SAFEIY 103 A Genex;d apects 103 B Working accidents 104 C Chemical hazards 104 D ui.Lie, lighting and ergonomics 105 E Possiblties for improvement 105 v SOCIAL IMPACTS 106 VI REGIONAL IMPACTS 107 A La Piz (Choqueyapu Basin) 107 B El Alto (Altiplano Basin) 108 C Onro (Lake Poopo Basin) 109 D Cochabamnba 110 E Santa Cruz 111 PART 6: RECOMMNWDED PRIORiTES FOR AN ENVIRONMENTAL MITIGATION PLAN FOR THE MINING AND INDUSTRIAL SECTORS I BROAD POLICY, LEGAL AND INSTITUTIONAL ISSUES - Clarifying and implementing policies to promote sustainable development 113 A Segthening governmental and nongovermmental institutions 115 B Overall planning for sound use of land and natral resources 116 C Planning for new investments 118 D Key program design and program implementation issues 121  11 MAJOR TARGETS FOR MMITGATION 125 A Cross-cufag areas 125 B The mining sector 126 C The industrial sector 128 m RECOMMENDED PRIORrTY ACTIVrITES 129 A Cross-cutting tlemes 130 B Improved environmental management for major sourcs 130 C Issues requiring fu study 131 D Proposal for a regional pilot S:lvity - integraed environmental management in the Onro region 131 IV ANALYSIS OF ALTERNATIVES 132 V ENVIRONMENTAL MANAGEMENT AND TRAINING 133 VI ENVIRONMENTAL MONITORING OF RECOMMENDED ACIrVITIES 133 PART 7: rPTLIC PAR1 7ATwoN I SEMINARS 134 II CONSULTATIONS REGARDING THE FINAL REPORT 135 PART 8: APPENDICES (OVERVIEW) 136 1 List of EA peparers 11 Bibliogaphy m Program of seminars/list of consulted organizations IV Technical appendices (overview; reports in two separate voluMCS)  TABLE OF ACRONYMS CFD The Center of Forestry Development CODEMA Departmentai Councils for the Environment CM The Council of Ministers COMIBOL Bolivian Minig Corporation CONEPLAN Ihe National Coucl of Economy and Plnning CoRDECO Regional Development Corporation for Cochibamba DINABSA National Directorate of Basic Sanitation, within the Minisay of Urban Affairs ETAP Toe Environmental Technical Assistance Project of the World Bank IONAMA National Fund for the Enviromment GOB The Government of Bolivia HOHW The C-eneral Directo-rat of Hygiene. Occupational Health and Welfare IIMM Mme Investigation Institute for Mining and Metallurgy INSO Ihe National Institute of Occupational Health JGF JapaDese Grant Facility of the World Bank MACA Ministry of Rural Affairs and Agriculture MEC Ministry of Education and Culture MECE Ministry of Exportation and Economic Competitiveness MEH Ministry of Energy and Hydrocarbons MPH Ministry of Public Health M lM Ministry of Mines and Metallurgy MPC Mnistry of Planning and Coordination MTvCPA Ministry of Transportaion. Communications and Private Aeonautics MUA Ministry of Urban Affairs NDH National Directorate of Hydrocarbons NEL National Environmental Law NGO Non-governmental organization NIC The National Institute of Colonization NSAR National Service of Agaian Reform PAAB Bolivian Enviromnental Action Plan SAGUAPAC Public Enterprise for Water Supply in Santa Cruz SAMAPA Public Enterprise for Water Supply in La Paz SEARPI Agency for Water Regulation in River Piaf SEDEMA Departmental Secretanat for the Environment SEMAPA Public Enterprise for Water Supply in Cochabamba SENCAM National Service for Miniag Cadastre SENMA National Secretariat for the Environment TCU Technical Coordination Unit of FONAMA  SECTORAL ENVIRONMENTAL ASSESSMENT OF THE MINING AND INDUSTRIAL SECTORS IN BOLIVIA Swedish Envlronmental Systems EXECUTIVE SUMMARY I. BACKGROUND This is a sectral Environmental Assessment (EA) of the rdning and industrial secuts in Bolivia. Its purpose is to lay the foundations for more effective enviromental planning and management in these secors. The EA has been canied out by Swedslih Eivironmental Systems with finarcing from tLhe Swedish govermment, in cooperation with the World Bank. The Study Team's lead institutional coun- tcrpart has been he National Secretariat for the Environment, although they have also worted closely with the Ministry of Mining and Metallurgy. Many other public and private organizations participated in this work. The report Is organized in eight pats: 1. Intuduction 2. Baseline data 3. Policy, legal and institational famework 4. Assessment of the mining sector S. Assessment of the industrial (manufacturing) sector 6. Recommneed priarities for an Environmental Mitigation Plan 7. Public participation 8. Appendices Ibis EA presents an overall diagnosis of environmental conditions and identifies strategic priorities. The recommended pnorities for an Environmental Mitiutmion Plan include both brpad..wlicY le and insti iaL..iaes and specific tar al mitigation In the mining and industrdal sectors. Of these priorities. the EA recommends a subset of activities to be given priority in future activities of the government of Bolivia, the World Bank and oaher international organizations. These activities fall into three categories: 1. Improved envirommental management for major sources of environmental prblems; 2. Issues requiring further study; and 3. A proposed pilot project on integrated environmental management in the Oruor region. In all these activities, there should be emphasis on building institutional capacity, developing consen- sual approaches with broad participation, and promoting more efficient use of nantal resources. i  1L BASELINE DATA A. Geography. Bolivia is located in the cener of the South Ameaican concinent, and covers a surface area of 1,098,580 kM2. Briefly described. Bolivia's territory cra mpses three main physiographic regions: (1) the Andean region, covering about 28% of the teritory in the central west and southwest pan of the country; (2) the sub-Andean region; and (3) the casten lowlands, covering more thn 65% of the country's teritory. Because of the great diversity in topography and physiography. a wide range of climatic conditions are found in the country, ranging frm the dry, oold weather and sparse vegetaton of the Altiplano to the tropical rain forests of the eastern lowlands. B. Geology aind mnnal resources. The btdn