Bolivian Congress Descends Into Violence Over Lithium Mining Contracts

Lawmakers hurled water and trash at Bolivia’s energy minister Thursday as a congressional session devolved into physical confrontations over $2 billion worth of lithium extraction agreements with foreign companies.

The chaotic scene unfolded as Energy Minister Alejandro Gallardo defended controversial contracts with Chinese and Russian firms before opposition legislators aligned with former President Evo Morales. Footage captured lawmakers throwing papers and one representative using an umbrella to deflect projectiles.

Opposition legislator Daniel Rojas accused the government of unfair dealmaking, telling local media “They are trying to swindle us” while demanding stronger protections for Bolivian interests.

The disputed agreements include a $970 million contract with Russia’s Uranium One Group for a facility capable of producing 14,000 tonnes of lithium carbonate per year, and a $1 billion deal with China’s CBC consortium to construct two plants generating 35,000 tonnes annually.

Parliamentary debate was suspended in February after mounting public outcry, followed by a court in the Potosí region ordering a halt to both agreements. The contracts, finalized between 2023 and 2024, await congressional approval but face rejection due to missing documentation.

Bolivia sits atop an estimated 23 million tons of lithium reserves, yet its first commercial plant operated at just 17% capacity last year while regional competitors Chile and Argentina dominate global production.

Local opposition stems from concerns about environmental damage and inadequate community benefits. “We want conditions so that the local people can have a dignified life,” said Alberto Perez Ramos, president of the Potosi Civic Committee.

Following the congressional melee, President Luis Arce pursued diplomatic alternatives at this week’s BRICS Summit in Rio de Janeiro. His Monday meeting with Indian Prime Minister Narendra Modi covered “cooperation in critical minerals” with both leaders recognizing “potential for enhanced collaboration in the critical minerals sector”.

Arce separately conferred with Russian Foreign Minister Sergey Lavrov about “prospects for the implementation of large investment projects”, likely referencing the stalled Moscow agreement.

These recent moves may indicate that Bolivia is seeking new partnerships to circumvent domestic resistance as the country approaches the 2025 presidential elections amid deep political divisions within the ruling party.



Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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