Compañía Minera Huanchaca de Bolivia was founded in 1832 to extract silver from the Pulacayo mine in the Potosí Department of Bolivia of some 3,300 acres. In 1856, Aniceto Arce (1824–1906), future President of Bolivia (1888–1892), became the majority stockholder of the company, and in 1877, he formed the Compañía Huanchaca de Bolivia to take over the property. Reconstructed in 1891. A 25 mile railway was built from Huanchaca to connect with the Antofagasta (Chili) and Bolivia Railway. Reconstructed again in 1928 and share capital became £1,600,000 in shares of £1.
Capital 3,000,000 bolivianos and increased in 1877 to 6,000,000 bolivianos. £1,600,000 in shares of £1. By 1914 had increased to 12,800,000 bolivianos (£1,600,000) in 320,000 shares of 40 bolivianos. In 1928 became £1,600,000 in shares of £1.