Bolivia will remain a top global producer of silver, zinc, tin and lead, with total mining industry value edging higher from USD-.-bn in ---- to -.-bn by ----. We expect the country s mining industry to benefit from stabilising mineral prices, in particular strong gains in zinc and silver prices, while resource nationalism and elevated operating costs will pose key challenges. On August -- ----, Bolivia announced the first shipment of lithium carbonate to China, from state miner Corporacion Minera de Bolivia (Comibol) s pilot plant in Uyuni. While a symbolic step toward developing the sector, we remain relatively downbeat about Bolivia s lithium production growth outlook over the coming years due to a weak project pipeline, poor business environment and the high magnesium content (implying higher operating costs) in reserves. On September - ----, the Bolivian government issued five new mining decrees in response to escalating violence at mining cooperative protests (see State To Tighten Grip On Mining Industry , September --). ...The move will exacerbate legal challenges facing the few foreign companies operating in Bolivia. Bolivia s mining industry competitive landscape will remain dominated by state firm Comibol, as government intervention and strict regulations continue to curb foreign mining investment.
...Bolivia holds an estimated -.-mnt of lithium resources, more than even top producers Australia and Chile, according to the United States Geological Survey (USGS). The majority of the resources are located in the country s Salar de Uyuni (salt flats), where the complex chemistry of the brines, in addition to high rates of rainfall and low rates of evaporation render production of lithium carbonate relatively higher cost, compared to neighbouring Chile and Argentina. ...Bolivia holds an estimated -.-mnt of lithium resources, more than even top producers Australia and Chile, according to the United States Geological Survey (USGS). The majority of the resources are located in the country s Salar de Uyuni (salt flats), where the complex chemistry of the brines, in addition to high rates of rainfall and low rates of evaporation render production of lithium carbonate relatively higher cost, compared to neighbouring Chile and Argentina. Given Bolivia s elevated production costs, compounded by regulatory uncertainty, we expect lithium mining foreign investment to favour neighbouring jurisdictions over the coming quarters. The Bolivian government maintains tight control over lithium production and refinement, although has stated plans to partner with foreign firms to develop projects further. In ----, state miner Comibol completed construction of the pilot plant for processing brines in the Salar de Uyuni.
...Bolivia s silver output is on track to return to growth in ----, with production increasing by -.- y-o-y to --.- million ounces (moz) over the first seven months of the year. We forecast the country s silver mine production to increase from --.-moz in ---- to --.-moz by ----, averaging -.- annual growth. ...
