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Chaos Erupts in Bolivian Congress Over Lithium Contracts with China and Russia

A dramatic scene in a legislative chamber showing papers flying and items thrown, conveying political turmoil over contracts.
  • Chaos unfolded in Bolivian Congress over lithium contracts.
  • Energy minister faced water and trash thrown by lawmakers.
  • Above $2 billion investments linked with China and Russia exist.
  • Tensions escalated during debates over lithium extraction deals.
  • Bolivia’s lithium reserves face scrutiny amid contract discussions.

Congress Faces Tumult Over Lithium Contracts Involving China and Russia.

Amid increasing political dissension, chaos erupted in the Bolivian Congress on Thursday as energy minister was splashed with water and bombarded with trash during a heated debate surrounding significant lithium contracts. These agreements, valued at potentially $2 billion, involve partnerships with China’s CBC consortium, which includes battery manufacturing giant CATL, among others, and Russia’s Uranium One Group, a subsidiary under the auspices of the state nuclear company Rosatom. The primary focus of these contracts is to establish direct lithium extraction facilities in the Salar de Uyuni, a location that is part of the Lithium Triangle that Bolivia shares with both Chile and Argentina.

Public Outcry and Opposition Rise Over Shady Lithium Deals.

The unveiling of these contracts has not been without contention. Following a public outcry that began earlier this year, parliamentary debates were halted in February after a local court in Potosí, the heart of Bolivia’s lithium reserves, mandated that discussions on the contracts be suspended. However, as the lower Chamber of Congress resumed conversations about these agreements recently amid deepening divisions, opposition lawmakers and supporters of former President Evo Morales voiced their concerns about the fairness of the deals, asserting they lacked sufficient guarantees that Bolivia would benefit from the extraction of its own resources. Lawmaker Daniel Rojas expressed the sentiment that the government’s approach is tantamount to an attempt to swindle the Bolivian people.

Law and Environmental Concerns Surround Foreign Investment Proposals.

Tensions flared when Senator Hilarión Mamani of the Socialist party boldly declared that these controversial contracts would be “thrown away” if they ever made it into the Senate, highlighting the volatile climate surrounding the negotiations. Bolivian law mandates that foreign companies engaging in significant industrial projects must engage with local communities and conduct thorough environmental assessments. This creates a crucial final approval process rooted within the legislature, adding another layer of complexity to these contracts. Moreover, government representatives attending public consultations assured the populace that royalties from lithium extraction in Potosí alone could yield between $800 million and $900 million over three decades, promising an annual influx of about $30 to $35 million.

The Bolivian Congress is grappling with heightened tensions surrounding lithium contracts with Chinese and Russian firms, as legislators face accusations of unfair dealings. The public outcry has put pressure on legislators to ensure that Bolivia stands to gain from its abundant lithium reserves, contributing to the unfolding political chaos. Given the existing law that compels foreign companies to consult local communities, the fate of these contracts remains precarious as opposition lawmakers continue to rally against them.

Clara Montgomery is a seasoned journalist with over 15 years of experience in the field. Born and raised in Miami, Florida, she graduated with honors from the University of Florida with a degree in journalism. Clara has worked for top-tier publications, covering a diverse range of topics including politics, culture, and social justice. Her compelling storytelling and in-depth analysis have earned her several awards, and she is known for her commitment to uncovering the truth and giving voice to the underrepresented.

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