Mining 2025

BOLIVIA Law and Practice Contributed by: Ramiro Guevara, Jorge Inchauste and Rosario Echeverría, Dentons Guevara & Gutiérrez S.C.

2.2 Impact of Environmentally Protected Areas on Mining Article 220 of the Mining and Metallurgy Law allows mining activities (prospecting, exploration and mining) to be carried out in environmentally protected areas as long as these activities do not go against the protection objectives of these areas. Local governments have the authority to issue an environmental licence for exploration if this activity will be performed in an environmentally protected area. For mining operations, the Ministry for Environ - ment and Water is responsible for issuing the environmental licence in co-ordination with the Ministry of Mining and Metallurgy. However, the granting of a new mining area in an environmen - tally protected area is highly unlikely. Although it is not a common practice for the AJAM to grant new mining contracts over envi - ronmentally protected areas, state-owned min - ing areas (COMIBOL’s areas) and areas tradi - tionally known for mining activities that overlap protected areas can be mined under the excep - tion in Article 220 of the Mining and Metallurgy Law. 2.3 Impact of Community Relations on Mining Projects Article 207 of the Bolivian Mining Law requires that all communities must be consulted through appropriate procedures before any mining exploitation activity is performed. As a result, the mining company typically must reach an agreement with the local community prior to proceeding with the mining operations. Although the consultation procedure and an agreement with the community is not listed as a requirement for exploratory work, it is recommended, and in

Prospecting and exploration activities are exempt from filing an Environmental Baseline Audit (an audit used to determine the situation of a territory prior to the execution of mining activi - ties) and an Environmental Impact Assessment Study (a study used to analyse the environmen - tal impact of a certain activity). An environmen - tal licence may be granted by the departmental government (Bolivia has nine departments) after the applicant files a description of the extent and impact of the prospecting and exploration activi - ties. For the exploitation and/or processing of ore (milling), the environmental licence is granted by the Ministry of Environment and Water, sub - ject to a report from the Ministry of Mining and Metallurgy. In that case, both the Environmental Baseline Study and the Environmental Impact Assessment Study are required. The Environ - mental Impact Assessment Study must include archaeological, socio-economic, water, air and soil studies, in addition to a chapter dedicated to the recovery of the site. A Licence for Hazardous Substances is also required alongside the environmental licence. If the operation requires the use of explosives, the Ministry of Defence issues a licence to pur - chase and use explosive materials. Purchasing, transporting and using controlled substances (such as gasoline, diesel, sulfuric acid and other chemical elements linked to narcotics produc - tion) are subject to control from the Ministry of Government through the Direction of Controlled Substances, which must grant a permit for their use. Municipal permits are also required for the con - struction of a minerals/metals processing plant.

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