Geneva Club CDG Observes Lithium Contract Between the State and Uranium One Group

 Through a letter addressed to Andrónico Rodríguez, president of the Senate, and Omar Yujra, president of the Chamber of Deputies, the Geneva Club (CDG) raised a series of concerns regarding the contract signed between Bolivia’s state-owned Yacimientos de Litio Bolivianos (YLB) and the Russian company Uranium One Group.

The Geneva Club, an association based in Switzerland, pointed out that the contract commits Bolivia until at least 2047, does not bring benefits to the country, and keeps it as a mere raw material supplier.

“The partnership contract, in which YLB nominally holds 51%, does not provide for profit distribution. Along with three other contracts that would be signed without the participation of the Legislative Assembly, it forms part of the ‘package’ of contracts presented to the Assembly,” the Geneva Club’s statement noted.

The document further added that the agreement between the State and the Russian company “would generate a debt of at least $976 million” and an obligation to reimburse recoverable costs, with uncertain net economic revenues for YLB as defined by Uranium.

“YLB lacks control or authority, in violation of the Political Constitution of the State (CPE), over essential aspects of the contracts. Its role is limited to providing brine containing lithium and other minerals, with no benefit to the country in terms of knowledge transfer, experience, technology, industrial development, or intellectual property rights for EDL technology,” the Geneva Club said.

The association also highlighted that there are no benefits in the training of scientists, professionals, or technicians to participate in international markets within the lithium industry chain.

“Bolivia is missing the opportunity to build institutional capacities with national public and private participation to lead international projects and businesses and to become a significant player in the global lithium industry.”

Finally, the Geneva Club emphasized the need for a thorough examination of this “partnership contract” and its relevance, especially considering the upcoming national elections in the country.

“Under the incidental partnership contract, Uranium commits to financing and constructing a lithium carbonate plant using EDL technology for an initial amount of $976 million. This amount may be adjusted in response to future changes in external economic and/or political factors. At the end of its 30-month term, and once the plant is built, the partnership is automatically dissolved.”