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Gold prospecting in the country''s rivers and mines was brisk in the late 1980s. Because of Bolivia''s vast territory and the high value of gold, contraband gold accounted for approximately 80 percent of exports. Official gold exports were approximately five tons in 1988, up sharply from less than one ton in 1985.
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For example, as the average gold ore grade has fallen substantially over the past 20 years, the gold mining industry now has to move a great deal more ore to produce the same or even less gold. In order to move a great deal more ore, the mining industry has to spend a lot more on trucks, tires, materials, energy, and labor.
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