Bolivia authorizes companies to continue in lithium tender process

Bolivian state lithium firm YLB authorized 21 companies to advance in a tender process and prove their financial capacity.

The companies are vying for contracts to develop direct lithium extraction pilots in seven of the country's 28 salt flats. They must present their audited financial statements for the last five years and a risk rating issued by internationally recognized agencies, the hydrocarbons and energy ministry said in a statement.

The risk rating must be at least 'A3' or equivalent on the scale of the financial system supervision authority ASFI.

Some 38 firms initially expressed their interest in the process when it began in January.

Among the companies that advanced are Colombia's Tecpetrol and China Machinery Corporation, with the latter expected to present two bids. Uranium One Group and Lithium One Bolivia are treated as separate bidders, even though they both belong to Russia's Rosatom.

YLB will evaluate the bids after the firms' financial capacity has been demonstrated and will issue reports on the relevance of signing contracts. In case of a favorable report, respective agreements should be signed in August, according to the schedule presented in January.

Gonzalo Mondaca, associate researcher at public interest NGO Cedib, told BNamericas that companies will test the efficiency of direct extraction methods and then analyze whether it is feasible to develop the salt flats deemed attractive.

"Direct extraction is the best possibility from a technical point of view, especially for the Uyuni salt flat, which has brine with lots of impurities. However, in order to apply the technology, you have to know the hydrological system very well to know how to extract and how to reinject," said Mondaca.

He added that the pilots may take years before they can be upgraded to industrial scale.

President Luis Arce previously vowed to turn Bolivia into a major global supplier that seeks to export 50,000t/y of lithium carbonate.