La Rinconada's economy is mainly based on the extraction of gold, both legally and
illegally, from nearby gold mines, mainly through
artisanal mining. After extraction, the gold is refined from small vendors to large companies like
Metalor Technologies, which is one of the world's largest suppliers of precious metals. In March 2018, "Metalor accepted more than 40 kilos of gold (worth about $1.7 million) from a company outside La Rinconada that customs officials said in a report later that year that they could not find at the listed address." Metalor came under legal scrutiny by both the Peruvian and U.S. government for its involvement in illegal mining, exploitative labor practices, smuggling of gold, and drug gangs. Metalor supplies gold to major international companies including
Apple and
Samsung. The only company with a governmental license to mine in La Rinconada is called
Corporación Ananea, thus many miners work at the gold mine owned by
Corporación Ananea. Under the
cachorreo system, they work for 30 days without payment and for one day they are allowed to work for themselves. At this day of the month, the miners are allowed to take with them as much
ore as they can carry on their shoulders. However, a miner stated "The problem is, though, that on the crucial day the men are usually sent to areas where there's nothing to find." Whether the ore contains any gold or not is a matter of luck. Pocketing of nuggets or promising chunks of rich ore is tolerated. This system sometimes ends with miners not being compensated for their work. While women are banned from working directly in the mines,
pallaqueras, women who work on the outside of the mines, sift through what has been discarded hoping to find something of value. Due to the extreme working conditions and wageless hours,
NGOs have described it as "
modern day slavery". In the Puno province, where La Rinconada is located, nearly 68% of the population lives below the poverty line. An article states that in addition to the extreme altitude's climate and oxygen impacts, residents live a "harsh reality marked by the lack of basic services, pollution and crime", citing that the settlement lacks clean water, sewage systems, and proper waste management, and noting that electricity only recently arrived in the 2000s, and that access to it still remains limited.
Inca Manco Cápac International Airport is the nearest commercial airport; it is located in Juliaca. ==Crime==