Mining 2025 Comparisons

Bolivia is a country with a vast mining tradition going back to before the rise of the Inca empire. The “Cerro Rico” (located in the silver-rich Potosi district) is a symbol of Bolivian mining and has been producing silver for over 400 years. It continues to be a huge silver deposit, with an estimated total silver endowment (production + resources) of more than 117,000 tonnes (3.7 billion ounces), as well as significant amounts of tin (over 820,000 tonnes) and zinc.

Bolivia also has rich potential in unexplored areas:

• according to the Bolivian government, more than 60% of the national territory (1,098,581 km sq) is not mapped and/or explored;
• the highlands and the Andes areas have well-known potential for base metals;
• the Uyuni Salt Flats are among the world’s largest lithium deposits and, along with other smaller deposits, are rich in non-metallic minerals; and
• the eastern area of the country has the Mutun iron core deposit, the Precambrian zone has potential for gold and the southeast of the country has potential for platinum-group metals (PGM), nickel and semi-precious stones.

Based on a civil law system, the Bolivian mining sector is regulated by the following main statutes.

• The Bolivian Constitution, dated 7 February 2019: due to the importance of mineral resources, the Bolivian Constitution has a chapter dedicated to mining and metallurgy. This chapter recognises the elements the Bolivian State must control throughout the mining production chain, including the conduct of activities under a mining contract, mining rights or pre-existing rights.
• The Mining and Metallurgy Law (Law No 535 of 28 May 2014) regulates mining activities, establishing principles, guidelines and procedures to grant, maintain and extinguish mining rights. It also establishes the institutional structure and the attributions of public authorities within the mining production chain, among other provisions.
• Law No 845 of 24 October 2016 modified the Mining and Metallurgy Law, creating a new type of mining contract, called the “Mining Production Contract”. It also returned to the Bolivian State the areas in which mining co-operatives had mining contracts with national or foreign companies.

• Law No 928 of 27 April 2017 incorporated Yacimientos de Litio Boliviano (YLB), which is the state-owned company in charge of all lithium matters and oversees activities throughout the entire lithium production chain in Bolivia.
• Law No 367 of 1 May 2013 modifies the Bolivian Criminal Code to include new criminal definitions related to mining activities. This law punishes illegal entry and trespassing in mining areas, illegal mining activities and the illegal sale and purchase of mineral resources.
• The Regulation for Granting and Termination of Mining Rights, approved by Ministerial Resolution No 023/2055 dated 30 January 2025, regulates the requirements and procedures for the subscription of mining contracts and prospecting and exploration licences for minerals and metals, as well as the termination of such contracts and licences.
• Environmental Regulations for Mining Activities, approved by Supreme Decree No 24782 of 31 July 1997, govern the environmental permits that must be obtained for the development of mining activities in Bolivia.

According to Article 349.I of the Bolivian Constitution, ground and underground resources are fully owned by the Bolivian people; therefore, the Bolivian State is prohibited from transferring the ownership of these resources. However, the Bolivian State can authorise their exploration and exploitation.

The Mining and Metallurgy Law provides that any mining activity must be executed under the new legal framework of administrative mining contracts. The existing Special Temporary Authorisations (Autorizaciones Transitorias Especiales or ATE), formerly known as “mining concessions”, must be converted into administrative mining contracts by the Jurisdictional Administrative Mining Authority. This type of contract does not require the participation of the Bolivian State through the state-owned Bolivian Mining Corporation (known as COMIBOL). However, all contracts related to the lithium resource production chain require the participation of state-owned company YLB.

The role of the Bolivian State in mining includes its participation as grantor-regulator and owner-operator.

As Grantor-Regulator

The Mining and Metallurgy Law created a new supervisory entity, the Autoridad Jurisdiccional Administrativa Minera (AJAM), whose role is to grant mining rights and oversee and control every mining activity carried out in Bolivia, as well as the Mining Registry.

Another central responsibility of the AJAM is to draft and propose legislation to the executive power, in order to regulate the transition of ATEs into administrative mining contracts.

As Owner-Operator

The Bolivian State incorporated and fully owns COMIBOL, which has been granted exclusivity over very large areas of mineral-rich lands for mining. However, many such areas are not currently being exploited by COMIBOL. In addition, the Bolivian State has granted state-owned company YLB control of all Lithium-rich deposits.

If an area with potential is registered under the name of COMIBOL (or under the name of another state-owned mining company), then a mining association contract may be requested and entered with such state-owned entity. This contract is similar to a joint venture agreement, highlighting that the contract must be executed under Bolivian laws.

The following entities also have influence and supervision over the Bolivian mining industry.

• The Ministry of Mining and Metallurgy is responsible for the mining policy and designates the president of COMIBOL.
• The Bolivian Geological Mining Service (SERGEOMIN for its acronym in Spanish), a branch of the Ministry of Mining and Metallurgy, is responsible for the management of the mineral titles system. It also provides geological and technical information, and maintains a geological library and a publications distribution centre donated by the United States Geological Survey. Tenement maps are also available from SERGEOMIN.

Mineral rights in Bolivia derive from contracts granted by the AJAM, as described below, and do not have the status of “property”.

Article 92 of the Mining and Metallurgy Law provides that mining rights grant their holders the exclusive authority to prospect, explore, exploit, concentrate, melt, refine, industrialise and commercialise mineral resources. However, Article 93 provides that such rights do not grant ownership or possession rights over mining areas, and that holders of mining rights are not able to grant leases over the mining areas. Mining rights cannot be directly transferred, sold or mortgaged.

In addition, Article 94 of the Mining and Metallurgy Law provides that the Plurinational State of Bolivia acknowledges and respects previously acquired rights of individual or joint title holders and private and mixed companies, as well as other forms of private property rights in relation to their corresponding ATEs, subject to the transition or compliance with the regime of administrative mining contracts. As a result, ATEs continue to be valid and recognised by Bolivian authorities for the exploration and exploitation of mineral areas.

Articles 95 and 102 of the Mining and Metallurgy Law provide that title holders have ownership over their investment, the mining production, movable and immovable property built on the land, and the equipment and machinery installed inside and outside of the perimeter of the mining area. The Bolivian State guarantees conditions of mining competitiveness and stability in the legal environment for the development of the mining industry.

Articles 97 and 99 of the Mining and Metallurgy Law provide that title holders also have the right to receive profit or surpluses generated by their mining activity, subject to compliance with applicable tax laws, and that the State guarantees the rule of law over mining investments of title holders who are legally incorporated.

Finally, in the lithium sector, mining investors do not acquire mining rights directly: they must sign contracts with YLB in order to be part of the production chain.

The Bolivian granting authority, the AJAM, is a national institution with jurisdiction and offices in all departments of Bolivia.

The Mining and Metallurgy Law regulates mining contracts in Title IV, Chapter I, and provides that the administrative mining contract is the legal instrument whereby the State grants mining rights to execute mining activities.

Pursuant to Articles 134 to 136 of the Mining and Metallurgy Law, administrative mining contracts must be formalised in a public deed legalised before a public notary from the jurisdiction where the mining area is located, and must be signed by the AJAM, as representative of the executive branch.

Mining Association Contracts With COMIBOL

If an area with potential is registered under the name of COMIBOL, or under the name of any other state-owned mining company, then a mining association contract must be entered into. A mining association contract requires a board, which must have the same number of representatives for each party, but the chair of the board will always be elected from the members representing the state-owned company. The Bolivian party is a free carry party that only contributes the mining areas to the contract; no other commitments, such as further investment, are required.

In addition to mining association contracts, local or foreign companies may execute mining production contracts if they wish to perform mining activities in mining areas under the administration of COMIBOL. In these contracts, COMIBOL’s participation is a percentage of the gross sale value of the mineral/concentrate, which is negotiated with COMIBOL (the concept is similar to a royalty). Ownership is not mandated as a 45%/55% participation scheme of the mining association contracts. Mining production contracts require investment schedules and a work plan. The maximum term of a mining production contract is 15 years, with the opportunity to renew for another 15 years. For enforceability, mining production contracts are required to be filed at the Mining Registry; once executed, signatory parties are not able to transfer or assign their rights therein.

Association Contracts or Operation and Maintenance Contracts With YLB

YLB develops the basic chemical processes of evaporite resources with a 100% state participation for the production and commercialisation of:

• Lithium Chloride, Lithium Sulfate, Lithium Hydroxide and Lithium Carbonate; and
• Potassium Chloride, Potassium Nitrate, Potassium Sulfate, derived and intermediate salts and other products of the evaporite chain.

However, YLB is authorised by law to enter into association contracts (similar to a joint venture) and operation and maintenance contracts for the development of the lithium production chain. In the case of joint venture contracts, YLB retains ownership of the lithium deposits, and its participation in the association is greater than 50%.

Term Length and Renewals

Articles 142 and 159 of the Mining and Metallurgy Law provide for different term lengths and renewal requirements, depending on the title containing the mining rights. Administrative contracts (under which the mining operator may carry out prospecting, exploration, exploitation, commercialisation and industrialisation of mining) have a term length of 30 years from the time of their registration. Such administrative contracts may be renewed for an additional 30 years only if the mining operator demonstrates the need to continue the mining operation.

Prospecting or exploration licences, however, only have a term length of five years. Such licences may be renewed for an additional three years only if the mining operator demonstrates the need to continue the mining exploration.

Rights to Progress from Exploration to Mining

Under Article 156 of the Mining Law, the prospecting and exploration licence grants the mining operator the preferential right to enter into an administrative contract for the exploitation of the mining areas being explored or a part thereof. This right may be exercised individually by the licensee or jointly with a third party.

According to the Regulation for Granting and Termination of Mining Rights, approved by Ministerial Resolution No 23/15 dated 30 January 2015, the process from exploration to mining starts with the filing of an application for the execution of an administrative contract for exploitation before the AJAM. This authority examines the validity of the prospecting and exploration licence and the fulfilment of the other requirements established by law for the execution of an administrative contract. If there are indigenous communities in the mining area, the AJAM must carry out a prior and informed consultation. Subsequently, the AJAM authorises the signing of the administrative contract and submits the contract to the legislative entity for approval and registration in the Mining Registry.

Maintenance Requirements

According to Article 144 of the Mining and Metallurgy Law, the titleholder must comply with two requirements in order to hold the rights granted by mining administrative contract:

• payment of the annual mining tax (Patente Minera), according to the scale detailed in Article 230 of the Mining and Metallurgy Law; and
• exploration and/or exploitation of the area granted as per the plan presented to the AJAM (activity in mining areas granted by the Bolivian State cannot be paused for more than six months).

Revocation

Pursuant to the Bolivian Mining Law, mining rights (current ATEs or future administrative contracts) may be revoked by the AJAM to the extent one of the following is evidenced:

• failure to pay the yearly mining tax right;
• suspension of mining activities (or failure to initiate mining activities) for one year;
• failure to deliver the activity reports on two consecutive occasions; or
• developing exploitation activities on exploration licences.

A resolution from the AJAM in relation to the revocation of the mining rights may be subject to administrative recourse and appeal before the Ministry of Mining, and may be subject to review by the Bolivian Supreme Court.

Operating Control, Marketing and Transferability

Under the Mining and Metallurgy Law, holders of mining rights must control and manage these rights themselves. Pursuant to Article 136 of the Mining and Metallurgy Law, the mining operators may not transfer or assign their rights and obligations arising from administrative contracts or prospecting and exploration licences.

However, the Mining and Metallurgy Law does not prohibit the transfer of shares of mining companies operating in Bolivia. In this case, there would be an indirect transfer of the administrative contract, obligations and liability of the entire mining project.

Mining activities are regulated by the Environmental Law (Law No 1333 of 1992), the Mining Code (Law No 535 of 2014) and more specifically by the Environmental Regulations for Mining Activities (Supreme Decree No 24782 of 1997).

The Environmental Law requires mining companies to have an environmental licence in order to perform their operations. At the same time, this environmental licence relates to several environmental studies that must be followed. The requirements differ depending on the kind of mining activity.

Prospecting and exploration activities are exempt from filing an Environmental Baseline Audit (an audit used to determine the situation of a territory prior to the execution of mining activities) and an Environmental Impact Assessment Study (a study used to analyse the environmental impact of a certain activity). An environmental licence may be granted by the departmental government (Bolivia has nine departments) after the applicant files a description of the extent and impact of the prospecting and exploration activities.

For the exploitation and/or processing of ore (milling), the environmental licence is granted by the Ministry of Environment and Water, subject to a report from the Ministry of Mining and Metallurgy. In that case, both the Environmental Baseline Study and the Environmental Impact Assessment Study are required. The Environmental Impact Assessment Study must include archaeological, socio-economic, water, air and soil studies, in addition to a chapter dedicated to the recovery of the site.

A Licence for Hazardous Substances is also required alongside the environmental licence.

If the operation requires the use of explosives, the Ministry of Defence issues a licence to purchase and use explosive materials. Purchasing, transporting and using controlled substances (such as gasoline, diesel, sulfuric acid and other chemical elements linked to narcotics production) are subject to control from the Ministry of Government through the Direction of Controlled Substances, which must grant a permit for their use.

Municipal permits are also required for the construction of a minerals/metals processing plant.

Article 220 of the Mining and Metallurgy Law allows mining activities (prospecting, exploration and mining) to be carried out in environmentally protected areas as long as these activities do not go against the protection objectives of these areas.

Local governments have the authority to issue an environmental licence for exploration if this activity will be performed in an environmentally protected area.

For mining operations, the Ministry for Environment and Water is responsible for issuing the environmental licence in co-ordination with the Ministry of Mining and Metallurgy. However, the granting of a new mining area in an environmentally protected area is highly unlikely.

Although it is not a common practice for the AJAM to grant new mining contracts over environmentally protected areas, state-owned mining areas (COMIBOL’s areas) and areas traditionally known for mining activities that overlap protected areas can be mined under the exception in Article 220 of the Mining and Metallurgy Law.

Article 207 of the Bolivian Mining Law requires that all communities must be consulted through appropriate procedures before any mining exploitation activity is performed. As a result, the mining company typically must reach an agreement with the local community prior to proceeding with the mining operations. Although the consultation procedure and an agreement with the community is not listed as a requirement for exploratory work, it is recommended, and in certain regions it is required prior to obtaining the environmental permit.

In Bolivia, many rural communities (where virtually all mining projects are structured) are considered indigenous communities, so most regulations regarding the requirement to have an agreement with and authorisation from local communities fall within the regulations set forth below.

Previous consultation, as a formal requirement, is based on the Bolivian Constitution, the Indigenous and Tribal Peoples Convention of 1989 (“ILO Convention 169”), dated 27 June 1989, and the United Nations Declaration on the Rights of Indigenous Peoples, dated 13 September 2007.

As a result, prior consultation as a right is guaranteed, must be respected, and must be performed by the state in good faith, including if the consultation is related to the exploitation of non-renewable natural resources in the territory of indigenous communities.

Following the same principles, Article 352 of the Bolivian Constitution is even more specific and establishes that the exploitation of natural resources will be subject to a procedure of public consultation before the affected community. Public consultation is understood as a free, informed and previous consultation process, conducted by the state, regarding the exploitation of natural resources in the territory of an indigenous community.

In addition to their right to prior and informed consultation, indigenous communities that have formed an Autonomous Indigenous organisation recognised by the state (Autonomía Indígena Originaria Campesina) have the power to govern their territory according to their own norms, institutions and procedures.

These powers are exercised within the framework of the Bolivian Constitution and the Law of Autonomies and Decentralisation (Law No 031 of 2010), among other domestic rules. As a result, the Autonomous Indigenous organisations are entitled to request additional requirements from potential mining projects. Typically, they require the mining operator to enter into a Community Development Agreement (see 2.6 Community Development Agreement for Mining Projects).

It is a requirement to have a Community Development Agreement with the local communities, prior to initiating any substantial work on a mining property. The AJAM will require evidence of the executed Community Development Agreement with the local communities. In addition, certain departmental/regional environmental authorities require the presentation of the agreements to the communities prior to issuing the requisite environmental licence.

Several environmental and social regulations and requirements are imposed on the mineral sector in Bolivia. An environmental licence, as approved by the regional environmental authority, a Community Development Agreement and authorisation from the communities are all required.

No specific governance regulations or guidelines have been introduced for the mining sector in Bolivia.

In recent years, illegal gold mining has affected indigenous territories and the Bolivian Amazon Nature Reserve. In order to stop the contamination of water resources in this area, the indigenous peoples of northern La Paz filed a constitutional action against the people who were illegally carrying out these activities. These indigenous peoples obtained a favourable ruling that analyses the importance of prior and informed consultation. This ruling also encourages the development of statutes for autonomous indigenous communities that have decided to protect their forest resources and reject any mining activity in their territories.

In addition, in recent years the AJAM has carried out controls to stop illegal mining activities in fiscal areas of state domain and in areas that are available to operators under administrative mining contracts or mining licences, or the obtaining of prospecting or exploration licences.

Bad Example

A bad example of how a poor strategy in community relations impacted negatively on an important mining project in Bolivia leading to the revocation of the foreign investor's mining rights is the international arbitration case brought by South American Silver Limited against the government of Bolivia (Arbitral Award PCA Case No 2013-15), after the Bolivian governmental authority (AJAM) revoked its mining rights. Regarding the importance of negotiation with indigenous communities to maintain mining rights, the Arbitral Tribunal of SAS v Bolivia stated the following:

“505. (…) What is clear for the Tribunal in connection with the Project, is that the Company undertook certain community relations activities which led to unrest in the communities directly affected by the Project and which were questioned by its own advisors, and that, as the conflict ensued, the Company adopted a strategy that contributed to increase the divisions among the Indigenous Communities, the radicalisation of the opposition groups and the practical impossibility of seeking the consensus that its advisors warned would be necessary in order to operate in the region. The documents provided by Witness X render an account of an aggressive strategy that helped worsen the conflict and that is very far from the search for consensus or agreement, and which intended to show majority support and to weaken the Project’s objectors”.

This led the Arbitral Tribunal to consider that:

“Bolivia sought a dialogue, proposed solutions, attempted to reach an agreement with the community members, and finally issued the Reversion Decree in response to the general violence, the social conflict – which based on the evidence was neither simply temporary nor minor – making it clear that the risk existed that the conflict would continue for as long as CMMK remained in the region. Having established the existence of the conflict, as well as its severity and consequences, the Tribunal is unable to conclude that the measure adopted by Bolivia was unnecessary or disproportionate and, much less, to speculate without any evidence on other measures that could have been implemented to resolve the conflict”.

Good Example

In opposition, several successful mining projects in Bolivia have had excellent environmental and community relationship management, resulting in a continued lucrative mining operation. The most notable example may be the operation of the San Cristobal mine in Potosí, Bolivia by a subsidiary of the Sumitomo Corporation. The San Cristobal mine ranks as one of the largest deposits of zinc, lead and silver in the world, and its open-pit method of extraction makes it not only unique in Bolivia, but also the largest mining operation in Bolivia. The successful community relations with the communities of San Cristóbal, Culpina K, Vila Vila and Río Grande have permitted almost uninterrupted large-scale mining operations over the last 25 years.

The initiatives adopted by the Bolivian State determine greater control by society regarding compliance with environmental protection standards in the development of mining activities. In accordance with the principles established by the Bolivian “Patriotic Agenda 2025”, in its pillar on “Environmental Sovereignty with Integral Development”, the Bolivian State is implementing policies to ensure the exploitation and industrialisation of minerals in a sustainable manner. The main policies include the right of any person, individual or collective to:

• participate in environmental management processes; and
• denounce violations of regulations that affect the environment.

The Law of Mother Earth and Integral Development (Law No 300 of 15 October 2022) provides general principles for environmental protection. Pursuant to said law, the Bolivian State assumes responsibility for developing sustainable processes for mineral exploitation and industrialisation, but sustainable processes for mining activities have not yet been implemented.

The Sectorial Plan for Integral Mining-Metallurgical Development 2016–2020, prepared by the Ministry of Mining and Metallurgy, recommends that mining operators incorporate clean technologies and good practices for solid, liquid and gaseous waste management, in accordance with national or international standards.

In addition, the Ministry of Mining issued guidelines in 2023 on the sustainable development of mining activities.

In recent years, Bolivia has been going through a crisis in the exploitation and commercialisation of traditional natural resources, such as hydrocarbons and gold. Therefore, the exploitation of lithium reserves is one of the main governmental objectives to maintain the natural resources industry.

In 2021, the Bolivian government launched an International Tender for partnership in the Direct Extraction of Lithium (DLE Project) from the brines of the Uyuni, Coipasa and Pastos Grandes salt flats, through the state-owned company in charge of all lithium matters in Bolivia (YLB). YLB chose eight companies to work with and has already signed three Framework Agreements. Currently, only one of these companies (Uranium One Group) has entered into a joint venture agreement with YLB for the development of a direct lithium extraction plant in the Salar de Uyuni.

In 2024, YLB launched the Second International Public Tender to execute a project of Direct Lithium Extraction in the Bolivian salt flats. As a result of this tender, YLB is currently negotiating agreements to develop lithium projects with CATL BRUNP & CMOC (China), Protecno S.R.L. (Italy), Eramet S.A. (France) and Eau Lithium PTY Ltd. (Australia).

There are three sources of income for the Bolivian State from mining activities:

• taxes;
• mining royalty; and
• mining tax right (Patente Minera).

General Taxes

The following taxes are applicable on mining operations:

• Value Added Tax (IVA) equivalent to 13% of the sale or purchase value is recoverable through fiscal credit gained with the purchase of goods or services related to the operations of the company;
• Transaction Tax (IT) equivalent to 3% of every transaction;
• Company Income Tax (IUE) equivalent to 25% of the additional utilities generated by mining companies due to favourable conditions related to the price of minerals and metals; and
• Company Income Tax – Foreign Beneficiaries (IUE-BE) equivalent to 12.5% of the amount of money sent to other countries.

When goods are exported, the GAC (Consolidated Customs Tax) must also be paid. The GAC is composed of the IVA, IT and an additional percentage depending on the good that is imported. RITEX is a system for temporary importing of goods where the GAC payment is not required.

Mining Royalty

This payment does not fall into the specific category of tax, but it implies a burden on the mining producer and is assumed as part of the government’s take from mining activities. The mining royalty is based on the gross sale value of minerals and varies between 3% and 7%, depending on the mineral and international market prices.

Mining Tax Right

A special mining tax is paid annually by mining titleholders to maintain their mining rights, at approximately USD6 per hectare.

To boost the smelting and refinery of metals, Article 224 of the Mining and Metallurgy Law provides a 40% discount off the mining royalty if the product is traded locally or to international markets as a metal bar.

The Bolivian government has been discussing granting incentives to local and foreign companies engaged in mining exploration.

Mining rights cannot be directly transferred or sold; the transfer of a mining project must occur through the transfer of shares (either locally or abroad). The transfer of shares in a Bolivian company is exempt from Bolivian VAT or transfer taxes.

The sale of the shares in a Bolivian mining company may generate a capital gain that would be taxable as part of the corporate yearly income tax of the seller, to the extent the seller is subject to such a tax. Therefore, careful structuring of the transfer of a mining project must include consideration of potential tax consequences.

The main features attracting investment for mining projects in Bolivia include:

• extensive and proven mineral reserves in different areas of the country;
• a long mining tradition in several regions of the country;
• foreign companies may indirectly hold 100% interest in Bolivian mining companies; and
• a stable and simple tax system, with few and simple taxes, that has been largely unchanged over the last 40 years.

Bolivia’s foreign investment regime is primarily contained in the Bolivian Constitution of 2009, the Investment Law of 4 April 2014 and the Bolivian Mining Code itself. In general, foreign persons and companies are allowed to own and operate mining operations with very few limitations.

Pursuant to the Bolivian Constitution, foreign persons and companies are not allowed to hold any property (including mining rights) within 50 km of Bolivia's international borders, directly or indirectly. In addition, pursuant to Article 151 of the Mining and Metallurgy Law, Mining Co-operatives (a special type of association supposedly owned and managed by the workers themselves) are expressly prohibited from entering into joint venture contracts with private companies, whether domestic or foreign.

Over the past decade, Bolivia denounced and withdrew from all its Bilateral Investment Treaties and from the ICSID international investment dispute resolution mechanism. However, it has remained a full member of the Andean Community (with Colombia, Ecuador and Perú) and has become an associate member of the Mercosur multilateral trade and co-operation agreements (with Brazil, Argentina, Paraguay and Uruguay). Although such multilateral agreements do not refer investment disputes to international arbitration, they do set forth some protections and principles that protect and grant foreign investors at least the same rights as local investors in mining projects.

According to studies conducted by the Central Bank of Bolivia between 1990 and 2017, private investment is the main source of financing for metal production. This sector reached 77% of total lead production, 70% of zinc production and 68% in silver production.

According to the report made by the Ministry of Mining, the Bolivian State invested USD500 million in 2022 and 2023 for the construction of zinc treatment plants in Oruro and Potosí, and for the execution of different projects in COMIBOL, Empresa Minera Colquiri, Empresa Minera Huanuni, Empresa Siderúrgica del Mutún and Empresa Metalúrgica Vinto.

Another important sector is the mining co-operatives, which are financed with a special fund created by the state (Fondo de Financiamiento para la Minería – FOFIM) and reached 31% of total silver production.

The Bolivian securities market has not been used for the financing of mining projects, and no Bolivian mining companies are currently traded on it. However, there are tax benefits in using the Bolivian Stock Exchange as it will exempt any capital gains resulting from the sale of stock through the Bolivian stock exchange of any Bolivian listed companies.

Foreign security markets, however, have been used quite successfully in the past for the financing of exploration, development and mining projects in Bolivia. The expectation is that this will be a growing trend in the next couple of years, with many projects currently being developed so as to be able to be listed on foreign exchanges.

As discussed in 1.5 Nature of Mineral Rights, Article 93 of the Mining and Metallurgy Law provides that mining rights do not grant ownership or possession rights over mining areas, and that holders of mining rights are not able to grant leases or mortgages over the rights over the mining areas. This means the administrative mining contract with the Bolivian government and the exploration licence may not be security themselves.

However, Articles 95 and 102 of the Mining and Metallurgy Law provide that title holders have ownership over their investment, the mining production, movable and immovable property built on the land, and the equipment and machinery installed inside and outside of the perimeter of the mining area. As a result, mining operators may grant such property (ie, mining production, equipment and machinery) as collateral and security for any financing.

In addition, there is no limitation on pledging as security the entirety of the shares that the investor may hold in the mining companies, which have been granted and legally hold the mining rights (licences or administrative contracts).

The intention of the current government is for the Bolivian mining sector to expand and grow. In recent years, the Bolivian State has been open to receiving foreign direct investment to carry out sustainable world-class mining exploration and exploitation projects.

On the one hand, the Ministry of Mining has recommended that COMIBOL (the Bolivian State mining corporation that holds mining rights over large areas of interest) and other state institutions partner with foreign investors who can inject the necessary investment, technology and know-how for the development of new large mining projects. In this sense, in 2024 COMIBOL launched a tender for the exploitation of the existing ore and rare earth deposits in the Mallku Khota mining project.

On the other hand, YLB (the state-owned entity in charge of developing lithium production chain activities) is negotiating with several foreign companies for the construction of large lithium processing complexes because of the two international tenders launched between 2021 and 2024.

The Ministry of Mining has stated that there are four mining projects that will have an important impact on Bolivia's economy in the long term (2025):

• Salar de Uyuni, with 21 million tons of lithium and 373 million tons of potassium;
• Cerro Mutún, with 40 billion tons of iron and 10 million tons of manganese;
• Corocoro, with 99.99% copper production and the zinc refineries with 99.99% production; and
• besides the development of technological minerals in the San Luis mine with cobalt, Rincón del Tigre with nickel and Cerro Manomó with rare earths.

Therefore, there are many significant opportunities in Bolivia to develop new and interesting mining projects, both in Bolivia's traditional mining sectors such as silver, tin, lead, and zinc, and in new non-traditional mining sectors such as lithium, uranium and other rare earth minerals.