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Regulatory framework On 9 February a new Political Constitution, of a nationalistic orientation, was enacted following a complex process at the Constitutional Assembly. The new Political Constitution defines all natural resources as having "strategic character of public interest". Various chapters of the new Constitution provide general rules in relation to property rights, state control, private participation and a number of others, with a dedicated chapter for each.
These chapters also include a chapter on mining, which sets out the general framework for mining rules and legislation. A new and complete Mining and Metallurgy Law No of 28 May Mining Law was introduced in , based on the mining chapter in the new Constitution and following the enactment of other interim rules.
Various additions and regulations followed in respect of a range of issues particularly setting out rules in relation to:. The procedures for granting new mining rights. The procedures for a change from the old system of mining concession to the new system of administrative mining contracts mandated by the new legislation based on the Constitution, and for other related activities.
The rules describing situations given place to loss of mining rights. Mining taxation patents and royalties. In addition, there is a complete set of environmental rules, including a special regulation for mining. AJAM counts with a higher national authority and various regional directions and is tasked with recognising previously-acquired rights and granting new rights by granting administrative contracts to operators, and acts as a supervisory authority generally of the system. AJAM is in turn supervised by the Ministry of Mines and Metallurgy, which has other important powers in connection with mining generally by formulating national mining policies within the framework of the law.
The Ministry of Mines and Metallurgy still can conduct inspections on in-effect mining rights to determine whether activities are being conducted under the proper legal and technical parameters. If not, it can resolve the caducity of rights. However, once a mining contract is agreed, the Ministry can no longer conduct inspections. Ownership 3. How are rights to the mineral resources held, and who holds those rights? Mineral resources belong to the people of Bolivia, of which the state is an administrator that grants rights of exploitation, development and so on to state operators, private operators and joint venture entities, which acquire property rights in relation to the production not to the unexploited reserves.
What are the key features of the leases, licences or concessions that are issued under the regulatory regime? Can these rights be leased by the right-holder? Rights of exploitation, development and so on are acquired through administrative contracts. Certain forms of association and production agreements with the state mining companies or between mining producers are permitted for the purposes of operation and development.
In the case of association agreements with the state, the state must have a majority participation and control. However, production agreements are possible on state mining rights under a royalty system. Private companies can enter into associations under the rules of the Commercial Code and specific mining regulations.
Private operators are supervised by the regulatory authority, AJAM, and are governed by administrative mining contracts and temporary exploration licences licences are issued with a term of up five years, and the regulatory authority has a right of first refusal for the contract.
Non-mining surface rights are obtained by agreement with the surface owners, or if no agreement is reached, certain procedures can be commenced with AJAM. Fees There are no specific filing fees. However, the final granting or continuation of the licence or contract requires an advanced payment of the annual fee.
This is also an ongoing requirement after the licence has been issued to continue holding mining rights. The licence fee is calculated according to the size of the area under the exploration licence or contract, as set out in the Mining Law. Any failure to pay the licence fee results in losing the underlying exploration or mining rights. Payment is on an annual basis. Restrictions Mining rights cannot be held by private companies or associations that have any kind of direct or indirect partial or total foreign equity ownership when mining rights are located within 50 kilometres from Bolivia's international borders, unless authorised by special law of the Bolivian Congress.
How are such leases, licences or concessions awarded? The primary mining equipment fleet consists of track dozers, front-end loaders, rear-dump haulage trucks and excavators. The overall silver recovery is projected to be Three broad ore classifications have been defined for process design — screened, run-of-mine ore from the lower portions of Huacajchi, Santa Rita, Diablo Este, and Diablo Norte; whole ore from the upper portions of the Huacajchi, Santa Rita and Diablo Este deposits; and the oxide waste dumps.
The main process facilities are relatively conventional, consisting of grinding followed by agitation leaching, counter-current decantation CCD , and final metal recovery in a Merrill-Crowe zinc precipitation circuit. Screened RoM ore will be passed through a grizzly with the oversize sent to a jaw crusher. The oxide-dump ore will be handled in a similar manner. The grinding circuit discharge will be fed to an agitated-tank leach circuit with an average leach residence time of 60 hours.
Power requirements for the project will be met by purchasing power from the local power utility, SEPSA. In its city center you can find a number of colonial-style buildings, including a museum of local history that depicts the plight of Bolivian miners past and present.
Centuries of mining for silver, tin and copper at Cerro Rico, however, have made only others rich, the locals say. They quip that the silver extracted by the country's former Spanish rulers alone would have been enough "to build a bridge from Bolivia to Europe. Bolivians attach big hopes to their country's huge lithium treasure and want a fair share of the revenues expected from it.
While Potosi's silver deposits are nearly exhausted, another treasure not far away has caught the attention of Bolivia's government and mining companies worldwide: lithium. Underneath the Salar de Uyuni — the largest salt flat on earth stretching for over 10, square kilometers 3, square miles — lies the world's largest single deposit of the raw material. The 20 million tons of lithium estimated to be won from the deposit are urgently needed to satisfy growing battery demand from electric carmakers worldwide.
On a sunny Friday in April , Juan Carlos Montenegro came to the town of Uyuni to tell a crowd of locals gathered on the main plaza that the lithium treasure would be used for the benefit of all Bolivians. That same day, the chief executive of Bolivian state-owned mining company YLB officially launched a mammoth project that was expected to produce 40, tons of lithium dioxide per year, and a group of German small and medium-sized companies was supposed to help Bolivia achieve that. Two years after Montenegro visited Uyuni, the Bolivians are still waiting for the riches they were promised.
The lithium project has been put on ice by former Bolivian president Evo Morales, who scrapped the contracts with the German investors in November following massive public protests. The local population and business leaders had demanded a fairer share of the lithium spoils. Since then, the mining project has been simmering on the political backburner, as wrangling for the country's leadership, including Morales' flight into exile from which he returned just this week, plunged domestic politics into turmoil.
But the dust appears to be settling after leftist leader Luis Arce won the recent presidential election. The former economy minister in the Morales government seems willing to restart the project, including Bolivia's partnership with the Germans.
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