Resource World Magazine

44 www.resourceworld.com D E C E M B E R / J A N U A R Y 2 0 2 0 MINING Russia and China eye massive Bolivian lithium production by Eugene Gerden R ussia is planning to start long-term production of lithium in Bolivia amid the ever growing domestic and global demand for the important battery metal, according to recent statements made by senior officials of the Russian Ministry of Energy and industry analysts. Implementation of the plans will be part of a recent investment agreement that was signed between representatives of the Bolivian Ministry of Energy and the Russian nuclear monopoly Rosatom State Nuclear Energy Corporation during the visit of former Bolivian President Evo Morales to Moscow. Russia has long sought to commence lithium production overseas. Similar to Soviet times, the current Russian gov- ernment considers this a strategically important task that will better ensure the country's state security in critical metals. A particular focus for implementation of the plans was paid to Latin America where the three largest countries – Argentina, Chile and Bolivia – account for up to 58% of the global lithium reserves. Of these countries, Bolivia and Chile are probably the only possible partners of Russia in the lithium field. Expansion into Argentina is considered unlikely as it is primarily ori- ented towards the US and Canada. Of particular interest to Rosatom is the possible development of the 10,582 km 2 Salar de Uyuni in southwest Bolivia, the world's largest salt flat and lithium reserve. In addition, the company may participate in building a lithium-carbonate plant in Uyuni. Planned total investment that could be allocated by the Russian com- pany is currently not disclosed. According to Morales, initial plans for the development of the domestic lithium reserves should have been carried out by domestic state-affiliated enterprises; however, the majority of local companies simply do not have the needed funds and technologies – even for just conducting exploration programs. The calculations of the possible cost of the development of Salar de Uyuni, which were earlier conducted by the Bolivian government, show that even at the initial stage, the size of required investment will exceed US $1 billion. A state spokesman recently said the Bolivian government can only invest US $60-65 million in the project. In another development, on October 15, Vancouver, BC-based Wealth Minerals Ltd. [WML-TSXV; WMLLF-OTCQX; EJZN-FSE] signed a Memorandum of Understanding for Uranium One Group, a subsidiary of Rosatom, to acquire a 51% interest in Wealth's Atacama lithium project in Antofagasta, northern Chile that would include a 100% off-take arrangement. Uranium One is conducting due diligence. The lack of funds in Bolivia's state bud- get along with access to cheap loans has prompted the Bolivian government to con- sider attracting foreign investors. As part of this strategy, the biggest hopes are with investors from Russia and China. With regards to China, in February 2019, the Bolivian government signed a contract with the Chinese consortium TBEA Group-Baocheng for investing US $2.3 billion in the development of lithium reserves in the country. Under the terms of the agreement, the Chinese investor will also allocate funds for the building of a lithium battery plant in China with the aim of processing future lithium output to be produced at Bolivian operations. n

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