Law No. 1546: General State Budget 2024
Bolivia's Law No. 1546, enacted on December 31, 2023, is a comprehensive legislation that approves the General State Budget for 2024. One of its notable provisions is Article 15 on the empowerment of public enterprises at the central state level to form strategic alliances with legally constituted national or foreign companies. These alliances can take the form of mixed economy companies or accidental associations (similar to joint venture companies), ensuring that the state retains majority ownership and control. This provision aims to attract investment and foster collaboration while maintaining state oversight and control, which is crucial for ensuring that public interests are safeguarded.
Under this law, the Bolivian government approved the accidental association contract between the Empresa Pública Nacional Estratégica de Yacimientos de Litio Bolivianos (YLB) and Uranium One Group, Joint-Stock Company Sucursal Bolivia for the development of a Direct Lithium Extraction (EDL) and lithium carbonate plant in the Salar de Uyuni, Potosí, Bolivia. The contract was signed on 11 September 2024 and aims to develop, construct, and implement the plant for the increased production of battery-grade lithium carbonate. The contract is part of a strategic alliance approved by the Directorio de YLB and authorised by the Ministry of Hydrocarbons and Energy. The objective of the contract is to promote the responsible and planned exploitation of natural resources, industrialise lithium resources in Bolivia and ensure the strategic control and administration of natural resources by the state. The project aligns with Bolivia's Economic and Social Development Plan 2021-2025 and requires legislative approval as per the Bolivian Constitution and relevant laws.
Similarly but not classified as a strategic alliance, the Bolivian government approved the service contract between the Empresa Pública Nacional Estratégica de Yacimientos de Litio Bolivianos (YLB) and Hong Kong CBC Investment Limited Sucursal Bolivia for the production of lithium carbonate in the Salar de Uyuni, Potosí, Bolivia. The contract was signed on 26 November 2024 and aims to enhance the industrialisation of Bolivia's lithium resources through the development and implementation of new technologies, particularly Direct Lithium Extraction (EDL).
Want to know more about this policy ? Learn more