Mining 2025

BOLIVIA Trends and Developments Contributed by: Jorge Inchauste and Rosario Echeverría, Dentons Guevara & Gutiérrez S.C.

It should be noted that, in the application of its powers of control over the executive body, the Legislative Assembly has made several inquir - ies regarding the contracting process being car - ried out by YLB. Specifically, the Assembly has requested YLB to: • issue a report explaining the procedure and criteria for selecting the companies that will sign agreements; • submit legal and technical reports recom - mending the signing of agreements; • submit a report on the business and invest - ment model; and • submit environmental impact assessment studies. Even though YLB has responded to the con - sultations made by the Legislative Assembly, some assembly members have expressed their concern about the contracting process being carried out by YLB and the way in which these projects will be executed. Therefore, the Legis - lative Approval of the lithium agreements could give rise to a broad discussion in the Legislative Assembly regarding the contracting process, the terms of the business and the way in which the projects will be executed. Citizen participation and social control The Bolivian Constitution and Law No 341 of 5 February 2023 – the Law of Participation and Social Control (Social Control Law) – provide that civil society organised in civic committees, unions, workers’ associations and neighbour - hood associations, among others, has the right to control the management of public entities and public, mixed and private companies that man - age fiscal resources, natural resources and basic services (“Social Control”).

In this sense, several social organisations related to lithium exploitation could be empowered to carry out Social Control over the public con - tracting processes called by YLB. Specifically, the Social Control Law provides that organisa - tions can only prevent or suspend the execution of projects if they demonstrate that the project causes or may cause damage to the State, col - lective interests or rights. Throughout Bolivia’s history, some social sec - tors have prevented the negotiation or execution of lithium agreements, arguing that they did not satisfy the interests of the sectors they repre - sented. • On 30 January 1989, under the presidency of Mr Victor Paz Estensoro, the Bolivian State signed a letter of intent presented by North American company LITHCO for the negotiation of a contract for the exploration and exploitation of lithium in the Bolivian salar with an investment of USD40 million. However, during the negotiation stage, the Bolivian State radically changed its position, not only because of economic issues, but also because certain social sectors in Potosí opposed the signing of such a contract with a foreign company. • On 15 November 1989, negotiations between the Bolivian State and LITHCO resumed under the presidency of Mr Jaime Paz Zamora. However, in 1990, the Comité Cívico Potosinista (COMCIPO) and other associa - tions linked to it requested the modification of several terms of the contract under negotia - tion. Even though the Bolivian State approved the signing of the contract with LITHCO, COMCIPO carried out a series of marches and strikes that resulted in the cancellation of the direct invitation contracting process.

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