THE MEXICO OF SOUTH AMERICA
_Depression and Revival of Mining Industry--Bolivia’s Tin Deposits
and Their Extension--Oruro, Chorolque, Potosi, and La Paz
Districts--Silver Regions--Potosi’s Output through the
Centuries--Pulacayo’s Record--Mines at Great Heights--Trend
of the Copper Veins--Corocoro, a Lake Superior Region--Three
Gold Districts--Bismuth and Borax--Bituminous Coal and
Petroleum--Tropical Agriculture--Some Rubber Forests Left--Coffee
for Export--Coca and Quinine--Cotton._
Bolivia, in the character, variety, and extent of her resources, is
the Mexico of South America. Her mines yielded the precious metals
for hundreds of years. She was the casket of gems held in pawn by
the Spanish Crown. She poured the riches of prodigal mother Nature
into the lap of the mother country.
Nor was the largess limited to the colonial epoch. The prosperity
continued until world conditions, the fall in the price of silver,
the depression in the baser metals, bore with crushing weight on an
industry which after centuries of ceaseless exploitation must show
exhaustion. Lack of transportation facilities discouraged capital
from meeting the stress of lowered prices by replacing primitive
processes with modern methods. Mining was not abandoned, but it did
not advance. Fresh discoveries did not follow exhausted ore beds.
But the dawn of the mining revival came. It was heralded by the
basis of all modern industrial development,--railways. The country
will have means of communication. The impulse will be given to
working old mines and developing new ones, and the progress for
the next quarter of a century promises to parallel that made by
Mexico during the last twenty-five years. Much of it will be due
to the policy initiated by General José M. Pando, and followed by
his successor, President Ismael Montes. The understanding of the
prospect will best be had after knowledge of what constitutes the
mineral resources of the country. From 83 to 85 per cent of the
exports are of this class.
Bolivia has not only the precious metals. She also possesses tin. So
few countries in the world produce tin, and the article maintains so
steady a price, that it is surprising enterprising capital has not
made greater efforts to exploit the Bolivian deposits. This mineral
is found all through the eastern fold of the plain lying between
the Oriental and the Occidental Cordilleras. It extends from the
vicinity of Lake Titicaca to the southern boundary of the Republic.
The richest and most productive zone of this region is between
south latitude 17° and 19°, but the tin fields cover an extent of
300 miles. The most common formation is of slate and gravel, tin
being found in the igneous rocks. The best-known districts are
Milluni; Huayna-Potosi, where the mines are worked more than 17,000
feet above sea-level; Colquiri, where the early Spaniards found
tin concentrates, and other sections of the Province of Inquisivi;
Oruro; parts of the Province of Poöpo, and the districts of Chayanta,
Potosi, Porco, Tacna, Chorolque, Chocaya, and Cotagaita. The three
latter deposits are in the vicinity of Uyuni.
The productive districts are known as La Paz, in the north; Oruro,
in the centre; Chorolque, in the south; and Potosi, in the east.
Some of the deposits are superficial and thinly spread out over a
great extent, while others have been followed to a depth of 1,000
feet and are still continued. The thickness of the veins varies
from a few inches up to 10 feet. In some of the mines the mineral
is found comparatively pure, containing 40 or 50 per cent and even
as high as 65 per cent of the metal. In others the oxide of tin
nearly pure is encountered in the form of crystal grains and nodules
of a kind of sticky iron sand.
In the northern district between the Illimani and Sorata, and not
more than 20 miles from La Paz, is the beginning of the tin deposits
of Huayna-Potosi. The tin is found in combination with bismuth, iron
pyrites, silver, galena, and even with gold. Milluni is a few miles
north of Huayna-Potosi. It has a group of parallel lodes, running
east, north, and south, which are composed of quartz impregnated
with fine earth, more or less crystallized, and oxides of iron
pyrites. There are also veins, running in a westerly direction,
which have galena, blends, and carbonates of iron. The greater part
of the workings have been at slight depths where the mineral is
easily extracted. Chocaltaga, which is within 12 miles of La Paz,
is operated under similar conditions. It forms part of the single
deposit of Huayna-Potosi and Milluni. The ore extracted from this
group is exported by way of Lake Titicaca and Mollendo.
The Oruro region is the most important, as appears from the
comparisons of production. The output of the different districts
for a series of years is shown in the following table, in terms of
metric quintals of 220.46 pounds:
+-----------+--------------------------------------------------------+
| District | Metric quintals |
| +--------+--------+--------+---------+---------+---------+
| | =1897= | =1898= | =1899= | =1900= | =1901= | =1902= |
+-----------+--------+--------+--------+---------+---------+---------+
| Oruro | 14,256 | 17,215 | 44,256 | 82,269 | 100,206 | 96,981 |
| | | | | | | |
| Chorolque | 8,680 | 10,960 | 20,615 | 40,146 | 68,998 | 56,201 |
| | | | | | | |
| Potosi | 8,361 | 9,153 | 19,826 | 29,979 | 39,175 | 13,365 |
| | | | | | | |
| La Paz | 6,198 | 6,632 | 8,097 | 9,948 | 10,780 | 9,536 |
+-----------+--------+--------+--------+---------+---------+---------+
| Total | 37,495 | 43,960 | 92,794 | 162,342 | 219,159 | 176,083 |
+-----------+--------+--------+--------+---------+---------+---------+
This shows that the production rose from 37,495 metric quintals, in
1897, to 176,083 in 1902. The value as expressed in _bolivianos_
mounted from 2,986,000 to 8,783,000, or from $1,255,000 to
$3,689,000. Since then the output has grown continuously. The Potosi
district has increased its production steadily, but the greatest
development is in the Oruro zone. The tin is exported mainly to
Liverpool, though a variable quantity goes to Hamburg. It is subject
to a small export duty, the rate being 1.60 _bolivianos_ for each
46 kilograms of bar tin and 1 _boliviano_ for the mineral in the
spongy form known as _barilla_, or black tin. For the bar this is
about 70 cents per 100 pounds, and 43 cents for the _barilla_.
The latter is the form preferred for export. In a recent year the
exports through the port of Antofagasta were: _barillas_, 29,583,000
pounds, and bars, 4,686,000 pounds.
In every sense the tin-mining industry may be said to be one of the
future, notwithstanding that it has been worked for years chiefly
with a view to securing the pure tin and without much regard to
the silver associated with the deposits. In the Oruro region some
oxidized ores from near the outcrops are operated for tin, but the
bulk of the mineral comes from the sulphide zone. From 2 to 4 per
cent of tin has been obtained by concentration and lixiviation
tailings. In Potosi there are also silver amalgamation tailings.
The past development of the industry was due to the building of
the railroad from Antofagasta to Oruro. This provided means of
transportation which made it profitable to work the tin deposits
within the limited zone where lower freights could be assured. The
company granted a special tariff for the transport of machinery,
fuel, and ores. By the llama or other pack animals it cost about
$1.25 per ton for each mile of transportation to the concentration
mills. The freight to Europe for each metric ton of 2,204 pounds
averaged 35 _bolivianos_, or $14.90, the proportion charged by the
railroad from Oruro to Antofagasta being about 4.89 _bolivianos_
per metric quintal of 220 pounds. Other transport and shipping
charges were about 3 _bolivianos_ for each quintal.
Of the world’s total tin output, say 100,000 tons, the Bolivian
production under present conditions may be placed at from 9,000
to 10,000 tons, or more than equal that of Cornwall and Australia
combined. Since the United States consumes 43 per cent of the
entire production of tin, the importance of the development of the
deposits in Bolivia and of the transportation facilities should be
appreciated.
The richest silver-producing districts of Bolivia are in the western
part and along the metalliferous zones of the central plateau which
form the base of the great plain. Toward the north, south, and east
the ore deposits crown the summits of the Andine sierras sloping to
the west. The region is divided into three sections which differ
fundamentally in their geological composition. The Department of
Potosi is the most abundant in silver ores. In it are situated the
deposits of Huanchaca, Aullogas, Colquechaca, Porco, Guadalupe,
Chorolque, Portugalete, and Lipez.
The famous, though not fabulous, silver field of Bolivia was the
Potosi. It is said that there may be people in the world who never
have heard of Bolivia, but there can be no one to whom the name
Potosi is unknown. “Were I to pay thee, Sancho,” said Don Quixote to
his squire, when the servitor was bargaining to inflict lashes on
himself in order to disenchant the knight’s Dulcinea, “in proportion
to the magnitude of the service, the treasure of Venice and the
mines of Potosi would be too small a recompense.”
The discovery was made by an Indian herder, named Gualca, who was
pasturing his drove of llamas when he came upon what seemed to be a
white metal cord. It was silver. The _cerro_, or conical hill, of
Potosi at the apex is 4,780 metres, 15,675 feet, above sea-level.
The configuration is volcanic. The veins run from north to south,
with an average inclination of 75 degrees crossing to the east. The
igneous rock which composes the interior mass of the _cerro_ is
impregnated in all directions with metallic substances,--lead, tin,
copper, and iron. It is distinguished principally by the abundance
of silver in the state of chlorides and sulphides. The great system
of lagoons or canals was finished in 1621, and cost $2,500,000, or
what would be equivalent to-day to $12,000,000. Originally there
were thirty-two of these canals.
A chain of authorities from Humboldt to Soetbeer have estimated the
silver production of the Potosi district through different periods.
From 1545 to 1800 these mines rendered to Spain $163,000,000,
which was the tribute that the Crown exacted of one-fifth of
the production. This would fix the taxed output at more than
$800,000,000, but historians are agreed that this was far from the
actual amount. In 1611 the Spanish authorities tabulated 160,000
inhabitants in this district. In 1905 the population was 12,000.
This measures the decadence of the industry.
The carved stone head which marks the entrance to the old mint,
the one established by the Spaniards in 1585 and kept in operation
for more than two centuries, now grins on the few Indians who
gather around the fountain under it with their droves of llamas.
The grinning head seems to mock their present meagre burdens with
the memories of the silver caravans of the past. But it does not
follow that those days have gone forever. The Potosi mines await
the railway to replace the llama, and they want also modern methods
to restore the riches that defy the old processes of mining.
The most productive silver mine in South America is the Pulacayo.
It is located in the Province of Porco in the Huanchaca district,
and is operated by the Huanchaca Company. The height is 15,153 feet,
and the entrance is through a tunnel, or _socavon_, known as the San
Leon. The claim is made that this mine as a silver producer is the
second in the world, the first being the Broken Hill of Australia.
From 1873 to 1901 the production was 4,520 tons of silver, and the
value of the output was estimated at $116,000,000. Formerly the
ore was smelted at Huanchaca, Asiento, and Ubina, but now much of
it is carried down to Playa Blanca, near Antofagasta. The company
employs 3,200 laborers.
In the Chorolque district is said to be the highest mine in the
world, 18,696 feet above sea-level. The altitude of the colossal
conical peak is 21,156 feet. In this mountain and its environment
are veins of silver, tin, bismuth, lead, copper, bronze, kaolin, and
wolfram. It is in the region of eternal snows, of never-ending winds,
of intense cold, and of rarefied atmosphere. It is operated through
a tunnel known as the San Bartholomew and an aerial railway, half a
mile long, by means of which the workingmen descend and return to
outer earth. A drawback to the exploitation of this region is the
lack of transportation facilities, the nearest railroad junction,
at Uyuni, being 95 miles. This difficulty will be overcome when the
railway is built from Uyuni to Tupiza, as a short spur will enable
connection to be made with Chorolque.
The mines in the neighborhood of Oruro were discovered in 1575.
In the beginning of the eighteenth century, just before the War
of Independence, in three years they paid to the Spanish Crown as
the tax of one-fifth, $40,000,000, which would mean an admitted
production of $200,000,000. In the district of Oruro are said to be
nearly 5,000 abandoned silver mines. In the immediate vicinity of
the city a score of silver and tin mines are in operation. The most
important of these is the Socavon of the Virgin. This is owned by
a Chilean company. The smelting, or amalgamation, works are located
at Machacamarca. Since 1898 the process employed has been the use of
hyposulphide lixiviation. The San José mine is located in a basin
two miles from Oruro. It is controlled by a Bolivian company, is
electrically lighted, and has a smelting establishment employing
the Wetherill system by means of electro-magnetism. During several
years the value of its annual output amounted to $1,000,000.
Under the law the mines are obliged to deliver in silver bullion the
fifth part of the exploitation to the national mint for coinage,
and the price is fixed monthly by the Secretary of the Treasury.
When the drop in silver continued, Bolivia lowered its export duty,
and finally, in December, 1902, silver bullion and minerals were
freed from export payment. The present Bolivian silver production,
which is 8,000,000 to 9,000,000 ounces annually, forms a very small
proportion of the world’s total output. But with the building of
railroads and the assured decrease of transportation charges, it is
a safe prophecy that within a few years the output will be doubled,
if not quadrupled. Here Mexico again furnishes the illustration.
In 1877 Mexico’s total silver production was $25,000,000, while in
1902, or a quarter of a century later, it had risen to $73,000,000,
and this increase had been brought about very largely through the
facilities afforded by the railroads, causing many old mines to be
worked profitably and new ones to be discovered.
The copper deposits follow principally the course of the Andes from
the Atacama desert through Lipez, Porco, Chayanta, and Calchas,
northeast to Corocoro. The most important field is that of Corocoro
in the Department of La Paz, 13,000 to 13,200 feet above sea-level.
It is the Lake Superior region of Bolivia. The form in which the
copper is most commonly met with is in small, irregular, spongy
grains which are called _barilla_, and which are from 70 to 80 per
cent pure. The native metal varies from the microscopic grains, or
_barilla_, to great masses of almost pure copper which the miners
call _charqui_. Other metals are found in combination. An analysis
made in Hamburg gave the following results:
Copper 329
Nickel 175
Silver 9
Zinc 117
Other substances 370
-----
1000
At times the mines of Corocoro have been exploited chiefly for the
silver deposits, and their auriferous character also has been an
element in their value. The claim is made that enough gold exists in
the copper ore to pay the freight charges to Europe. The town has
15,000 inhabitants, and is the capital of the Province of Pacajes.
The copper layers of this region are known in an extension of 35
miles. The mines are owned by Chilean, French, English, German,
and Bolivian capitalists, to whom American syndicates make regular
offers.
The production of the Corocoro district, in spite of discouraging
markets, has mounted steadily. In 1879 it was 20,240 metric quintals,
but in 1886 it had dropped to 10,000. In 1900 it was 25,636, and
in 1902, 42,014 quintals, or nearly 1,000,000 pounds. The freight
charges have been a heavy drawback to the industry. The two outlets
from Corocoro are through Desaguadero River to Nazacara on Lake
Titicaca, across the lake to Puno, and thence by the railroad to
Mollendo and by ship to Europe; by pack animals to Tacna, and thence
by rail to Arica and by ship to Europe. To Mollendo the cost of
freight and insurance was 1.87 _bolivianos_ (78 cents), while to
Arica it was 2.24 _bolivianos_ (96 cents) per quintal. The ocean
freight to Europe from either point was about 2.78 _bolivianos_
($1.17). The building of the railroad from Corocoro to Tacna will
afford the copper mines cheaper freights.
The government exacts a small export duty on the copper ore. The
industry has promising possibilities in other regions, in addition
to the increased development that may be looked for in the Corocoro
district. The best paying of these is in Lipez, where the white
native copper is produced and the ore treated simply by concentration.
There are three gold regions. The first extends from the western
borders of the Republic, beginning in the basin of the Inambari
River, to the upper Paraguay. It includes the mountain zone of
Caupolican, Munecas, Larecaja, Cercado, Yungas, Inquisivi in the
Department of La Paz, continues through the Department of Cochabamba,
and is prolonged through Santa Cruz. There are some famed placer
washings in this district, including the Suches and the Tipuani.
The Suches is promising both for quartz and for placers. American
gold-miners undertook to dive for the gold washings in the Tipuani,
and they are said to have had a fair degree of success.
The Larecaja placers of Tipuani are historic. They have been worked
since the time of the Incas. The Portuguese began to test them in
the middle of the sixteenth century, and introduced negro laborers
from Brazil. The Villamil family from 1818 to 1867 obtained 151,000
ounces of gold from the Larecaja properties controlled by them. The
placers of the Yani River are also given considerable importance.
The best-known mine in this section is the Elsa. The German mining
engineer, Stumpff, estimated the quartz here at 61,000,000 tons,
giving 36 cents of gold for each ton.
The city of La Paz lies in the gold gulch of the river Chuquiyupu.
This is an Aymará name, meaning inheritance of gold.
The second gold-producing region, generally called the Chuquisaca,
commences at Atacama and Lipez on the border of Chile, and runs
through the southern section of the district of Chayanta, Sur
Chichas, Mendez or Tarija, and Chuquisaca, extending to the plains
of Santa Cruz. The best-known placers are in the bed of San Juan
River, known as the Gold River of St. John. A large amount of money
is invested in dredging machinery for the exploitation of this
river. In the Province of Chayanta many gold-mining claims have
been filed, but few are worked.
The third auriferous region, and the one believed to be the richest,
is in the far north of the Republic, along the limits of Peru, and
following the watercourses of the Madre de Dios, the Acre, and the
Purus Rivers. As this zone is occupied entirely by savages, its
wealth of gold has not been exploited and is more or less fabulous.
The gold production of Bolivia which is accounted for is very small,
though the calculation of Humboldt and others is that from 1540 to
1750 it amounted to £420,000,000. No reliable statistics regarding
present production are obtainable, for, notwithstanding the very
light export duty, which is 20 cents per ounce, there is reason to
believe that full reports are not made by the mines. In 1901 the
output of which the government had account was 550 kilograms, and
in 1902, 580 kilograms.
In the production of bismuth Bolivia claims to lead the world.
The King of Saxony takes the product in order to protect his own
monopoly. The geological formation and the geographical distribution
of bismuth follow the same direction as tin, the deposits being
in the transverse folds of the eastern slope of the Andes. It is
found mixed with the veins of tin and silver, and occasionally
it is encountered in the native state. The tin and silver beds
of Chorolque contain bismuth. The deposits in this district have
sulphurs of copper and iron which are easily separated. The most
recent discoveries have been in the Province of Inquisivi. The
production in 1901 was 4,925 metric quintals; in 1902, 3,450. The
value the latter year was about $350,000. The government imposes
a very slight export duty.
Among the mineral substances not metallic, which Bolivia counts as
a source of wealth, is borax. The chief deposits are situated in
the Province of Carangas, in the Department of Oruro. The principal
field there is the Chilcaya, which has an extent of 30,000 acres.
The Chilcaya borax is said to be of the best quality, with 47 per
cent water. Its exploitation is quite primitive. Chilcaya is 120
miles from Arica, which is the export port for it.
Geologically, and in general terms, the carboniferous zone is
described as extending south toward the Pilcomayo. Bituminous coal
and petroleum exist, but their commercial possibilities have not
been established. Petroleum is found in the peninsula of Copacabana
and other points along the shores of Lake Titicaca, but these
deposits are not important. Coal veins of uncertain value exist in
the northern chains of the Cordilleras, extending from the Tinchi
River to the border of Peru. In the Province of Caupolican the
crude petroleum is used by the local population.
Coal and petroleum also are found in some districts of Tarija,
Cochabamba, and Santa Cruz. An analysis was made in 1904 by the
French geologists, under direction of the government, of the coal
beds in the Chimoré and Apilla-pampa districts. It showed for the
Chimoré samples volatile substances, 24 per cent; carbon, 47.5
per cent; ash, 28.5 per cent. In the Apilla-pampa specimens an
appreciable quantity of sulphur was found. Specimens from both
districts burned well, although not free from slate. Preference was
given the Chimoré coal as containing a greater quantity of coke and
volatile substances. It was declared to be capable of utilization
in industries and particularly in the production of gas. Since the
central plateau and the most thickly populated regions are above
the timber line, and recourse has to be had to the llama droppings
for fuel, if further exploitation of the Chimoré region shows the
presence of coal in large quantities, it will be a decided economic
gain to the country. But the indications do not favor it.
As regards tropical agriculture, Bolivia is also similar to Mexico.
Rubber was a great fount of prospective income until the value was
compounded in the form of a cash indemnity of $10,000,000 from
Brazil, when all title to the Acre territory was yielded. But there
are other regions yet left, and Bolivia may still look upon rubber
as a source of national wealth. She retains some gum forests in the
Madre de Dios zone, which has its outlet through Villa Bella at the
confluence of the Beni and Mamoré Rivers, and which includes the
Madidi, Orton, upper and lower Beni, and Manuripi Rivers. Another
region is comprehended in the districts of Chalanna, Songo, Mapiri,
Huanay, Coroico, and a part of the Province of Caupolican. This
district has its outlet through Puerto Perez on Lake Titicaca. Its
rubber product already is exploited to a fair degree. The Germans
have large interests in this region.
A district which is practically unexploited is in the northern and
eastern part of the Department of Santa Cruz, formed by the provinces
of the Velasco and Magdalena, and bordering on the Brazilian State
of Matto Grosso. The gum forests here are along the rivers Paraguay
and Verde. They are very remote and practically unexploited, but in
time undoubtedly they will be opened up. In the region of Yuracares,
in the Department of Cochabamba, there is also a species of rubber
tree.
Bolivia has a complete code of legislation governing the production
and export of rubber, including the imposts to be paid. The gum
trees are national property, and neither natives nor foreigners
have the right to exploit them without special license, preference
being given the one whose discovery claim is filed first. In the
Territory of Colonias, which included Acre, each person was permitted
to acquire 500 trees, while companies could acquire 1,000.
Of Bolivian agricultural products for export, coffee is entitled
to a chief place. Its cultivation is carried on chiefly in the
district known as the Yungas, or hot lands, but the shipments for
the world’s consumption cannot be large in competition with Brazil
and other countries. Coffee is exported to northern Argentina and
to Chile with profit. The European shipments of late years have
been unimportant, notwithstanding that the excellent quality of the
exported product had given it a trade standing. With the coffee
lands given railroad transportation, the Yungas product, whose
flavor is as fine as that of Arabia, may regain its foreign market.
It is a question whether coca is a blessing or a curse to Bolivia.
This is the plant from which cocaine is had, and from the similarity
in name is often confused with cacao, or chocolate. The natives
have chewed the leaves for hundreds of years, and the students of
racial atavism profess to see in its qualities stupefying effects
which have brutalized the existing Indian race. It is, however, an
important agricultural industry. The shrub grows from two to eight
feet high. It is cultivated in the lower plains of the eastern
slope of the Andes at heights varying from 1,100 to 5,300 feet.
Its cultivation is the leading industry of the Yungas district,
in which there are many fine plantations. A plantation lasts from
thirty to forty years if handled with care and intelligence. The
last year for which figures were given, the coca product was placed
at 3,450,000 kilograms (7,890,000 pounds), valued at $1,250,000.
The government taxes the production, and draws considerable revenue
therefrom, since the home consumption is so common. The exportation
is through the ports of Mollendo, Arica, and Antofagasta, and also
through Argentina by way of Tupiza. France is the chief buyer. The
exports amount to 556,275 kilograms on an average each twelvemonth,
but the foreign market is uncertain, and in some years the quantity
sent out of the country is much smaller.
[Illustration: Gathering Coca Leaves in the Yungas]
Sometimes it is forgotten that when the British government secured
the cultivation of the cinchona tree in Ceylon and India, the quinine
industry was not entirely transplanted from Peru and Bolivia.
Annually from 250,000 to 325,000 kilograms, or 715,000 pounds, of
cinchona bark are shipped through the ports of Mollendo and Arica.
In the eastern Andine region 6,000,000 trees are said to be under
culture, there being a large number of the groves on the broken
mountain-sides at altitudes of 3,200 to 6,500 feet. The Bolivian
product gives from 30 to 32 grammes of sulphate of quinine for each
kilogram, and, it is claimed, is superior to other South American
bark.
Cotton-growing without question has a future in the Santa Cruz and
Chimoré region. It has been claimed that this district can produce
375,000,000 kilograms,--at least, this was the pretension of some
enthusiastic railway promoters. They estimated that one _hectare_,
or 2½ acres, would grow 1,600 plants, each of which would yield two
pounds of ginned cotton, and that 50,000 families could be colonized
in this region who would cultivate each six months 15,000 pounds.
While experienced cotton-growers smile at these fanciful figures,
the experts who have studied the possibilities of the soil and
climate in this region credit it with undoubted cotton capabilities.
It is another illustration of Bolivia’s varied resources and of
her similarity to Mexico.