Bolivia's New Mining Code Proposes Changes for Protected Areas
A proposed mining code in Bolivia aims to allow mining in protected areas with state permits, stirring controversy among critics.
The Bolivian government is introducing a new mining code that could significantly change the landscape of mining across the country. This proposed legislation, called the Code of Mining and Metallurgy, contains 200 articles and is currently open for public consultation. Mining Minister Marco Antonio Calderón de la Barca is pushing to have this code presented to the legislature by the end of November 2026.
Key Provisions of the Proposed Code
The draft sets forth several noteworthy provisions. One major aspect is that mining rights granted prior to the 2009 Constitution will remain valid, even in protected areas. However, any new mining claims will require a compatibility certificate from Sernap, Bolivia’s National Service of Protected Areas.
Despite the reservations surrounding the implications of mining within sensitive regions, the draft allows for operations in Ramsar wetlands and forest reserves, provided miners obtain the necessary state authorizations. This is a significant shift in policy and raises concerns over environmental impacts.
Involving Private Investment and Cooperatives
The code also aims to encourage private investment by allowing both national and foreign companies to form partnerships with local mining cooperatives. This could vastly impact Bolivia's gold mining sector, which is predominantly operated by member-owned cooperatives. The existing law restricts such collaborations, so this represents a substantial change.
In addition to gold, the draft identifies lithium and potassium from salt flats as vital national resources, maintaining that the state-owned Yacimientos de Litio Bolivianos will oversee lithium projects. This focus on lithium is crucial, as Bolivia has one of the largest lithium reserves in the world and is courting international investors in the sector.
Controversy and Criticism
Critics, including Deputy Cecilia Requena, have raised alarms about the potential environmental ramifications of the proposed code. They argue that it could lead to increased mining in environmentally sensitive areas, calling into question the balance between economic development and ecological preservation.
Requena points out that the draft weakens the environmental licensing process and omits essential multi-sector studies that were previously required. Although the code promises to address mercury use in gold mining, it does not set a definitive timeline for reducing its usage, which is a significant concern among environmental activists.
Next Steps in the Legislative Process
As part of the consultation process, public meetings across Bolivia will begin soon, allowing citizens to express their views and contribute to the discussion. The mining summit held in July is the foundation for this draft, emphasizing the need for multi-stakeholder input in shaping mining policies.
Once public feedback is collected, the code will be forwarded to the Plurinational Legislative Assembly, where further amendments are possible before a final vote.
Implications for the Future
The proposed mining code represents a pivotal moment for Bolivia, particularly in how it governs natural resources and manages environmental protection. The involvement of private investors in the mining sector is a clear strategy to enhance economic growth while maintaining some level of state control over critical resources like lithium.
For potential investors, particularly from the U.S., this draft raises crucial questions about the regulatory environment and the timeline for approvals. With the draft still subject to change, it is unclear what final regulations will be established regarding mining rights and environmental safeguards.
What Remains Uncertain
As discussions move forward, many aspects of the proposed mining code remain uncertain, including how effectively it can balance economic interests with environmental protections. The fate of existing mining rights in protected areas and the practicalities of new claims will be critical factors in the subsequent legislative developments.
Watch for updates as public consultations progress and the mining code heads to the Assembly, where it may undergo significant revisions based on stakeholder input.
