Hey everyone I hope you all are fine and doing great. Today I'm going to Write about the Country Nameand It's gold reserves and how gold reserves are playing their role in It's economy.
Overview
Bolivia is a small country located in South America. It is bordered by four different countries on all sides. On the north and east there is brazil, on the Southeast there is Paraguay, on the south there is Argentina and on the Southwest, you can find Chile.
The country is also famous as The Plurinational State of Bolivia. It is acknowledged by Stunning landscapes, Diverse Culture, and Abundant Natural Resources including Gold.
History
When we search the history of Bolivia we found at that Gold mining in Bolivia is very old and Dates back to pre-Columbian era, when people use to extract Gold from the mountain.
Today, Bolivia has significant amount of gold reserves and other precious metals and has a notable mining industry.
Gold Reserves
According to the research Conducted by World Gold Council, currently Bolivia is sitting on the huge gold reserves of 1200 tons, Which makes it 37th Largest Gold reserve holder in the World.
Eastern Region is the main area and most of the gold reserves are found in this Area. Famous Andes Mountains are also located in this area.
National Mining Company
Gold reserves play an important role in economic growth of any country, that is why Bolivian Government is trying their level best to formalize the Gold mining industry in the country.
4 years ago, The government had passed the law that will use the mining industry to increase the Government revenue and also promote the mining practices with in the country. This law also established a National Mining Company to oversee the development of the industry.
Challenges
Despite the government's efforts to regulate the industry, the Country is still famous a lot of challenges when it comes to gold mining, these challenges are listed below
- Environmental degradation.
- Informal and illegal mining activity.
- Unsafe working conditions.
- Social conflict in some areas.
The Government is doing efforts to decrease the impact of all these challenges by promoting Responsible mining practices and stopping illegal mining activities.
Price Volatility Challenge.
Volatility in Gold prices is another challenge is being faced by Gold mining industry in Bolivia. This price fluctuations can also impact the profitability of mining operations and also affect the country's economy from gold exports.
Conclusion.
As we now know that, Bolivia has significant amount of gold reserves, but they are also facing many challenges, the Government should take serious steps to increase mining operations in the country which in directly increase their revenue and country's reserves.
Don't take this post as a financial advice, It's just an informational post. DYOR before investing
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