Environment and Security: Critical minerals governance in Bolivia: Prior consultation, rights and International Standards*

Kathryn Ledebur and Erika Weinthal

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.

Keywords

critical minerals, energy transitions, Bolivia, lithium, prior consultation, resource curse, sustainable

livelihoods

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