Russia urges decision on Bolivia Li deal

: Metals
25/05/12

The Russian ambassador to Bolivia today criticized what he described as Bolivian government stalling of a $970mn lithium concession deal with Russian-backed Uranium One Group.

Dmitry Verchenko, in an interview with Bolivian state outlet Agencia Boliviana de Información, said the Bolivian congress is taking an "excessive" amount of time to reach a decision on the $970mn lithium concession deal signed in September 2024.

The concession deal included the production of 14,000 metric tonnes (t)/yr of lithium carbonate equivalent (LCE) from the Uyuni salt flat — the largest lithium reserve in the world at 23mn t. Verchenko said that Uranium One, a subsidiary of state-owned atomic energy agency Rosatom, will build a pilot plant capable of producing 1,000t/yr LCE as soon as possible and follow up with gradual expansions.

The project — which is still unnamed — will be the country's first direct lithium extraction (DLE) plant, a brine processing method that reduces LCE production time and water usage.

Bolivian energy minister Alejandro Gallardo last month urged congress to approve both Russia's and China's CBC concession deals, but still no progress has been made. Congress in February said that it would only discuss the two deals after a nationwide round of public consultations that remains unscheduled.

Political uncertainty delays Bolivia's Li hopes

There is no forecast of when or if the concessions may be approved because Bolivia's congress is deeply divided between allies and political opponents of Luis Arce, the current president. Neither faction has the required majority for the bills to pass.

The country will hold a presidential election in August and market participants expect a congressional vote on the matter may be pushed to next year because of uncertainty in the current polling ahead of the election.

Russia looks further afield

Verchenko added that Russian and Uranium One are waiting on the approval of the concession deal despite neighboring Argentina and Chile rapidly developing their lithium markets.

Given the delay, Russia is already looking for alternative lithium solutions in Latin America with Brazil emerging as a potential partner. Following an in-person meeting with Russian president Vladimir Putin on 10 May, Brazilian president Luiz Inácio Lula da Silva confirmed that Brazil is actively seeking to collaborate with Russia to extract spodumene from the country's so-called Lithium Valley, a lithium-rich region located in the state of Minas Gerais.

Bolivia's 2024 lithium carbonate output stood at 1,832t.

By Pedro Consoli

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25/06/19

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25/06/19

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