Bolivia's YLB launches lawsuit over construction problems at lithium plant

Bolivia's state-owned lithium company, YLB, filed a criminal complaint against 10 former directors of the firm and a contractor over issues with 18 evaporative pools required for production of potassium chloride and lithium carbonate at the Uyuni industrial complex, which was inaugurated in December.

The lawsuit details alleged crimes including contracts that damage the State, breach of obligations, uneconomic conduct and breach of contract, YLB president Karla Calderón stated at a press conference.

The plant is expected to reach maximum production capacity of 15,000t/y of battery-grade lithium carbonate by 2025.

An internal audit uncovered "serious irregularities, omissions and alleged acts of corruption" between 2013 and 2017, according to Calderón.

The executive also noted that the economic damage to the company is estimated to amount to 425mn bolivianos (US$61mn). Of that figure, 212mn bolivianos are attributed to breaches of contract specifications and the remainder to lost profits.

Among other issues, the audit revealed irregular contracts in construction, waterproofing and commissioning of industrial evaporation pools during the period, as well as failure to meet technical specifications for acquiring geomembranes, deterioration during installation and misuse of 18 industrial pools, rendering them currently inoperable.

Calderón cited an example where the thickness of PVC geomembranes used for waterproofing should have been 0.75mm but was actually 0.5mm. The absence of pumping systems for the waterproofing process also led to pools being left without water, causing damage and delays in production of brine, a critical input for the lithium carbonate plant.

"Just as it was our obligation to start up a plant that we inherited in very poor design conditions, our obligation and commitment today is to report alleged crimes committed against a company that is the property of all Bolivians," said Calderón, adding that “this is irreparable damage to the Bolivian people, causing delays in the strategic lithium project.”

She also said that YLB is conducting the necessary analyses to recover lost time in reaching maximum processing capacity at the Uyuni industrial complex.

Located in Colcha K municipality in the southern area of the Uyuni salt flat in Potosí department, the industrial complex is expected to achieve a production of 3,000t of lithium carbonate this year.