Critical minerals governance in Bolivia: Prior consultation,rights,and international standards

Abstract

The transition to green energy has highlighted the geopolitical strategic importance of countries that produce critical minerals such as lithium. Countries with this potential mineral wealth face many of the same socioeconomic and environmental challenges as areas where other mining activities take place. We argue that despite the prevalence of growing global standards in the extractives sector such as the Extractive Industries Transparency Initiative, domestic governance mechanisms that privilege prior consultation are necessary to further accountability and transparency, prevent conflict, and ensure that benefits from critical mineral mining reach communities. Bolivia has the largest known lithium reserves in the world. Since 2010 Bolivia has implemented a state-led lithium extraction and is beginning to implement contracts between its state-owned company, Yacimientos de Litio Bolivianos, and foreign investors. This article explores the implementation of prior consultation in Bolivia’s lithium sector through examining the views of communities living around the Salar de Uyuni in Bolivia. Interviews were conducted with community leaders and members to gauge the extent to which prior consultation is taking place in compliance with international standards and Bolivian law and whether the concerns of local communities are being addressed, especially pertaining to environmental protection and sustainable livelihoods.