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Bolivian Court suspends legislative approval of lithium contracts with Chinese firms

Bolivia suspends lithium extraction and processing contracts with Chinese companies over concerns about compliance with human and environmental rights.

A court in Bolivia’s Potosí region has ordered a halt to the legislative approval process for lithium contracts involving Chinese companies CBC and Citic Guoan, alongside Russian firm Uranium One Group, until proper environmental impact assessments are completed.

The Mixed Civil and Commercial Court of Colcha K granted an injunction to Cupconl, representing 53 indigenous communities, citing concerns over environmental and human rights protections. The court’s decision halts the treatment of contracts with these foreign companies, citing the lack of environmental and human rights safeguards.

Cupconl called the decision a “historic victory,” highlighting threats to local water sources and indigenous rights posed by the extraction projects.

The court also instructed Bolivia’s Ministry of Hydrocarbons and the state lithium company Yacimientos de Litio Bolivianos (YLB) to suspend all actions related to these contracts until legal and environmental requirements are met.

Lawmaker Lissa Claros noted indigenous communities challenged the contracts after pilot tests by one Chinese company reportedly caused water shortages, warning that full-scale operations could endanger these communities.

Senior Uyghur activist and founder president of the Ilham Tohti Initiative, Enver Can, spoke to Uyghur News about the issue and expressed appreciation for this breakthrough. “We appreciate the decision of Bolivian government, and express the gratitude of the under CCP suffering Uyghur people. We hope this exemplary move would be followed by more Democracies,” he said.

Bolivia claims some of the world’s largest lithium reserves—about 23 million tons—mostly in the Uyuni salt flats. Agreements with CBC, Citic Guoan, and Uranium One Group for lithium extraction technology and plant construction were signed in 2023-2024, but legislative approval has been delayed amid local protests demanding transparency.

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