The Small-scale Mining Cooperative of Rayo Rojo is located in the Agua Blanca community found in the Pelechuco municipality, department of La Paz. The Pelechuco region has a long and rich history in Mining dating back hundreds of years.

The cooperative has 43 members and 100 contracted workers. Founded on the 17th of September in 1984, it is one of the first mining cooperatives in Bolivia. Many of the older members have since passed on membership to their children, facilitating a generational transition. The experience and work of the cooperative is strongly valued in the region, making it an example for others to follow. Given the mines remote location, it has its own community which all the miners and their families call home.

The cooperative has 12 plants for processing the minerals from their deposits. They work in crews, collectively selling the monthly production in the name of the coop. Monthly production ranges between 1 500 and 2000 grams of gold per month.

Miners´Coop Rayo Rojo Ltd.

Production Organisation

Location

• The gap analysis performed with the Rayo Rojo coop against the Fairtrade and Fairmined standards indicates that the following areas need to be addressed in order to reach the certification:

• Improve the administration system, with increased efficiency in the processing of documents and control of activities.

• Promote the cooperative culture within the mining organization. • Improve environmental aspects, such as correct use of mercury, and the handling of waste. • Establish better mechanisms for the marketing of the minerals, with the goal of avoiding

loss and securing better prices according to the purity of the gold. • Establishment of rules and regulations for industrial health and safety with the goal of

decreasing accidents and risks.

ESTIMATED PROJECT DURATION OF 8 MONTHS

The mechanization of the cooperative was the result of hard work from all the members who have since substantially improved their incomes. They have also installed electricity which has facilitated the work, both in the mine and in the community. Currently the coop is looking to invest to improve gold extraction techniques and an exploration study for other deposits within their mining concession, which will allow for continued work well into the future.

They have also invested in a school for the community.

The principle challenges centre around the fortification and implementation of improvements in their systems of administration, industrial security and occupational health and safety, the promotion of environmental practices, improvements in labor politics and promoting social responsibility for the families.

Challenges Achievements

Our proposal