Why lithium power politics are playing out very differently in Chile and Bolivia

August 22, 2022
Issue 
Lithium mine
A lithium mine in Chile. Photo: Peoples Dispatch

A large sinkhole , near the town of Tierra Amarilla in Chile鈥檚 Copiap贸 province in the Atacama salt flat, in late July. The crater, which has a diameter of more than 100 feet, emerged in one of Chile鈥檚 most regions for copper and lithium extraction.

The Candelaria mining complex 鈥 80% by Canada鈥檚 and 20% by Japan鈥檚 Sumitomo Metal Mining Co Ltd and Sumitomo Corporation 鈥 had to halt its operations in the area. Chile鈥檚 National Geology and Mining Service (Sernageomin) on August 1 that it had assembled a team to investigate the sinkhole that appeared less than 600 metres away from human habitation.

The mayor of Tierra Amarilla, Crist贸bal Z煤帽iga, questioned why the earth had given way near the Alcaparrosa mine, and whether the appearance of the hole had something to do with the mining operations. 鈥淭oday it happened on an agricultural property,鈥 the mayor Ciudadano ADN radio, 鈥渂ut our greatest fear is that this could happen in a populated place on a street, in a school, and protecting the integrity of our inhabitants is our greatest concern at the moment.鈥

Government officials traveled to Tierra Amarilla to investigate the sinkhole. Mining minister Marcela Hernando joined Crist贸bal Z煤帽iga and others the Alcaparrosa mine on August 12. Before the visit, Z煤帽iga the authorities to apply 鈥渕aximum sanctions鈥 to punish those responsible for the sinkhole, which seems to have been by underground mining activities carried out by the Candelaria mining complex.

Sernageomin 鈥 the responsible government agency 鈥 聽has all mining activity in the area and is continuing with its forensic assessment to ascertain the reasons behind the earth collapsing near the mining complex.

Moratorium on mining

鈥淲e should not be speaking of any kind of extraction in the Atacama salt flat,鈥 Ram贸n Morales Balc谩zar told us a few days after the sinkhole was discovered. Morales Balc谩zar is the founder of Fundaci贸n Tant铆, a nongovernmental organisation in San Pedro de Atacama dedicated to the promotion of agroecology and socio-environmental sustainability.

鈥淭he Atacama salt flat is exhausted, [and has been] deeply impacted by copper and lithium mining and tourism. We should be working to restore the ecosystem there,鈥 said Morales Balc谩zar. The word 鈥渆xhausted鈥 is also the title of a new co-authored by Morales Balc谩zar that offers a chilling portrait of the depletion of groundwater as a result of global lithium extractors. 鈥淟ithium extraction, the newest industry to the region [of the Atacama salt flat], is now yet another way the scarce water resources are being depleted,鈥 the report.

Morales Balc谩zar is part of a team of researchers known as the . These scholars are engaged in fine-grained research about what they see as the ecocide of the salt flat, which stretches across Argentina, Bolivia and Chile. A book written by these scholars in 2021 鈥 鈥 offers a detailed assessment of what they call 鈥済reen extractivism鈥 and 鈥済reen growth鈥.

Extractivism refers to the extraction of natural resources from the earth to make profits without any consideration for the earth being mined or for the people who live in the areas being mined. 鈥淓xtraction and extractivism are not the same,鈥 said Morales Balc谩zar. The former is the mere removal of natural resources, which can be done sustainably without harming the earth, and is carried out for the social well-being of the people who live near the mines.

鈥淲e have been holding conversations with Indigenous institutions and trade unions to imagine different regimes of extraction,鈥 Morales Balc谩zar told us. When the workers at 鈥 a United States mining company 鈥 went on in 2021, Morales Balc谩zar and other colleagues spoke with them about the possibility of thinking about new kinds of extraction techniques, although 鈥渋t is really not something we can see in the near future鈥, said Morales Balc谩zar.

One reason why miners at Albemarle and the Indigenous institutions (such as the ) cannot conceive of any alternative is that even if they get from the mining wealth, that is still seen as a better option than facing unemployment.

Bolivia鈥檚 alternative

North of Chile, in Bolivia, the concept of 鈥渞esource nationalism鈥 has framed the debate around lithium extraction in the country. In 1992, the government of then-President Jaime Paz Zamora signed an agreement with the US-based company Lithium Corporation of America, now known as FMC Corporation, which 鈥渁llowed the company to take all the lithium it could, giving Bolivia only 8% of the profits. Many Bolivians were outraged over the deal,鈥 according to a 2010 in the New Yorker. This led to by the Potos铆 Civic Committee, which eventually ended the contract.

When Evo Morales took over as president of Bolivia in 2006, the residue of this battle shaped his 鈥渞esource nationalism鈥 approach to lithium and other minerals. 鈥淗e vowed to 鈥榠ndustrialise with dignity and sovereignty鈥, promising that raw lithium would not be exploited by foreign corporations but instead processed by state-controlled entities in Bolivia and transformed into batteries,鈥 noted a 2018 in Bloomberg.

In 2007, Bolivia developed a lithium industrialisation policy. The Mining Corporation of Bolivia (Comibol), we learned from officials there at the time, encouraged Bolivian scientists to develop and patent traditional methods of extraction through evaporation (although this method has struggled due to the high levels of magnesium found in the Bolivian lithium). Morales鈥 government invested heavily in the lithium industrialisation scheme, which led to Bolivia being able to develop its own batteries (including cathode production) and develop its own electric car through the state-owned . To control and manage lithium production, a company called was created in 2017 by the government.

鈥淲e were making great progress,鈥 Morales told us, 鈥渦ntil the of 2019 and then the pandemic.鈥 The coup eventually led to his ouster. 鈥淲e will coup whoever we want,鈥 Elon Musk, whose company Tesla relies on lithium for its batteries and electric cars. Such is the anger against the possibilities of 鈥渞esource nationalism.鈥

Developments in Bolivia show that new ways of extraction are being explored, even if these are not perfect. Environmental challenges in the Salar de Uyuni, the world鈥檚 largest salt flat, and grumbles by people who live there continue to define lithium extraction. However, the lithium industrialisation policy and the great care taken by the country for what the Bolivians Pachamama 鈥 the Earth 鈥 during the extraction process offer some differences from the extraction work done by the large and US mining companies.

In Chile, Lester Calder贸n, a union leader in the city of Antofagasta, who ran for governor in 2021, wrote an in January in which he argued that the Indigenous communities must decide about the way lithium is used and that the resources (including water) of Chile must be nationalised. These elements are in place in Bolivia, and yet there are challenges ahead for the people there.

Bolivia鈥檚 current President Luis Alberto Arce Catacora hopes to renew the state-led lithium industrialisation policy but cannot find the resources domestically to do so. That is the reason why his government has embarked on a process of drawing in investment from outside (currently, from China, Russia and the US are still competing to secure the bid).

The centre of the struggle in Bolivia is Potos铆, where the Spaniards, who ruled the region, had for centuries hollowed out the earth to draw silver to export to Europe. 鈥淲e were the centre of [silver] exploitation but remained at the fringes of the country鈥檚 decision-making,鈥 Potos铆 government official Juan Tellez Reuters. 鈥淭hat is what we are trying to avoid now with lithium.鈥

The people of Potos铆, like the people of Tierra Amarilla in Chile, want to imagine a different kind of extraction: one that is controlled by those who live by the sources of the metal and one that does not destroy the earth, creating sinkholes everywhere.

[This article was produced by . Vijay Prashad is an Indian historian, editor and journalist. He is a writing fellow and chief correspondent at Globetrotter. He is an editor of and the director of . Taroa Z煤帽iga Silva is a writing fellow and the Spanish media coordinator for Globetrotter. She is the co-editor with Giordana Garc铆a Sojo of (2020).]

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