The discovery of ore in silver-rich Cerro Rico ("Rich Hill") by Indian Diego Huallpa in 1544 prompted the foundation of the city of Potosí on 10 April 1545 at the foot of the hill. It was founded by Juan de Villarroel as Villa Imperial de Carlos V, in honor of then Spanish King Carlos V. The mine was soon producing fabulous wealth: most of the silver shipped through the Spanish Main came from here. According to official records, 45,000 tons of pure silver were mined from Cerro Rico from 1556 to 1783 with 7,000 tons going directly to the Spanish monarchy. Indian labour, forced by Francisco de Toledo, Count of Oropesa through the traditional Incan mita institution of contributed labor, came to die by the thousands, not simply from exposure and brutal labor, but by mercury poisoning: in the patio process the silver-ore, having been crushed to powder by hydraulic machinery, was cold-mixed with mercury and trodden to an amalgam by the native workers with their bare feet. The mercury was then driven off by heating, producing deadly vapors. Because so many indigenous labourers died, there was a shortage of labour, so the colonists in 1608 made a request to the Crown in Madrid to allow importing 1,500 to 2,000 African slaves per year. An estimated total of 30,000 African slaves were taken to Potosí throughout the colonial era. African slaves were also forced to work in the Casa de la Moneda as "acémilas humanas" (human mules): since mules would die after a couple of months pushing the mills, the colonists replaced four mules with twenty African slaves.
After 1800 the silver mines became depleted, making tin the main product, eventually leading to a slow economic decline. Still, the mountain continues to be mined for silver and tin to this day. Due to poor worker conditions (lack of protective equipment from the constant inhalation of dust), the miners still have a short life expectancy with most of them contracting silicosis and dying around 40 years of age. It is possible visiting the mines; a very interesting and sobering experience, especially in the cooperative mines, where the visitor is led through the steep tunnels, deep inside the earth, and, being at well over 4,000 m above sea level, it is literally breathtaking!
In 1672 a mint was established in Potosí to coin silver and water reservoirs were built to fulfill the growing population's needs. Potosí became one of the world's largest cities with a population exceeding 200,000. Although at an altitude of 4,070 metres above sea level, it became a glittering town, at least for the Spanish colonizers. The city had at one stage almost 90 churches; many churches were looted, however, during the independence conflicts in the early 19th-century. But there are still many reminders of this era, colonial architecture with ornate churches and houses with balconies along narrow streets. Potosí's cathedral was built during the second half of the 16th century, finished in the early 1600 and reconstructed in the 19th century. The San Lorenzo Church has mestizo-Baroque portal carvings by 16th century artisans worth seeing. UNESCO declared the city of Potosí a "World Heritage Site" in December 1987 in recognition for its rich history and its wealth of colonial architecture. Potosí has also typical Bolivian music and dance on offer with the renowned folklore group Mosoj Ñan.
Twenty-five km downhill from Potosí is Tarapaya with its thermal baths; it's surrounded by stunning scenery, notably Laguna Ojo del Inca ("The eye of the Inca"), a small lake set in a stark landscape.