Court Halts Chinese and Russian Lithium Projects in Bolivia

Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--The Bolivian government criticized the decision, highlighting that it puts a break on lithium developments in the country.

The court in Colcha K in Potosi, Bolivia, ordered the suspension of lithium contracts in the Uyuni salt flat, where the Russia state-owned Uranium One Group (Moscow) and the Chinese consortium CBC had signed contracts for lithium exploitation with the state lithium company Yacimientos de Litio Bolivianos (YLB), as reported by Infobae.

The decision puts a break on lithium developments in the Uyuni salt flat, which has the world's largest lithium reserves with 21 million tons of lithium. Despite sitting on vast resources, Bolivia's lithium industry remains less developed than those of its neighbors, Argentina and Chile.

The court decision was taken following a complaint from indigenous groups in the area due to collective and environmental violations, as reported by Infobae.

Alvaro Arnez, vice minister of energy, mentioned in a press conference that the companies had begun discussing the plans with communities and that after the contracts are approved in the industrialization stage, they will conduct the process to consult communities on the projects.

So far, only Uranium One Group and CBC signed lithium contracts under the incumbent administration.

The Bolivian government and YLB were both surprised by the court's decision and highlighted that they had not been notified about it.

"Neither the Ministry nor YLB have been notified of any precautionary measures or proceedings against the signed lithium contracts, which will not take effect until approved by the Chamber of Deputies and the Senate. Meanwhile, we continue to advance the process of approving and analyzing the contracts," said Arnez.

In October of last year, CBC signed a contract for the construction of two lithium plants with a production capacity of 35,000 metric tons per year and a combined investment of US$1 billion. YLB would hold 51% of the stakes in both plants.

Uranium One Group also signed last year a deal to construct a 14,000-metric-ton lithium plant in the Uyuni salt flat. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minreals Project and Plant databases can click here for the three related project reports and here for the plant profiles.

In a recent statement from April, YLB highlighted that neither Uranium One Group nor CBC have started any operations related to the contracts in the Llipi complex operated by YLB. According to the state company, they were awaiting contract approval from the legislative assembly, and the only activities carried out so far pertained to exploration studies.

Subscribers can click here for a profile on the Llipi complex.

"As a national government, we regret (the decision) on these contracts, which are for the provision of services for lithium extraction and not for investments, delaying the process in both Oruro and Potosí. So it's clear that it is the country which suffers. We see a political stance there that fails to recognize the need and importance of regions being able to develop through lithium," said Bolivia's economy minister, Marcelo Montenegro. Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).