Bolivia: The Energy Transition and Indigenous Peoples’ Rights in the Face of Critical Mineral Extraction

Bolivia: The Energy Transition and Indigenous Peoples' Rights in the Face of Critical Mineral Extraction

Written on 11 July 2025. Posted in News

By MIGUEL VARGAS DELGADO FOR INDIGENOUS DEBATES

As attention remains focused on lithium extraction, Indigenous Ayoreo, Chiquitano, and Guarayo communities are facing a new threat to their territories: the expansion of rare earth and critical mineral mining. These projects, which are presented as essential to a so-called green energy transition, risk deepening the extractivist model. There is an urgent need to restore effective safeguards and to guarantee the implementation of Free, Prior and Informed Consent processes, in full respect of Indigenous Peoples' right to self-determination.

The energy transition aims to gradually reduce fossil fuel consumption by promoting the electrification of the economy through technologies such as solar panels and wind turbines. However, this shift faces major limitations due to its heavy reliance on the extraction of rare earth elements or critical minerals-a group of at least 17 elements found in the Earth's crust. These resources are strategic for modern technologies and essential to contemporary society.

Although many countries-especially in Europe-have sped up their energy transitions to meet climate commitments and to respond to the energy crisis triggered by the war between Russia and Ukraine, not all possess sufficient reserves of these minerals. The success of the transition is closely linked to the availability and supply of these resources, potentially reinforcing extractivist development models in resource-rich countries.

According to the International Energy Agency, China is the world's leading producer and processor of rare earth elements, accounting for around 60% of global extraction and nearly 90% of global processing. The Xi Jinping administration has recognized that the value of these minerals lies not only in their marketability but also in their strategic importance for technological advancement. As a result, Western countries have become increasingly dependent on China-a dynamic that directly affects both the pace and the sovereignty of the global energy transition. In Latin America, only Brazil ranks among the top ten countries with the largest reserves, placing third with approximately 15% of the global total.

Rare Earth Elements and Critical Minerals in Indigenous Territories

Paradoxically, the energy transition that is being driven by renewable sources has increased the demand for rare earth elements and critical minerals-non-renewable resources-the extraction of which is concentrated in strategic and fragile ecosystems, such as Indigenous territories. A global study published in 2022, based on the international platform on mineral supplies for the energy transition, reveals that more than a half of extractive projects related to these resources are located within or near Indigenous lands.

In Latin America and the Caribbean, an estimated 73% of these projects directly or indirectly affect formally titled Indigenous territories. Many also overlap with areas facing high levels of water stress, further increasing their environmental vulnerability.

The exploitation of rare earth elements and critical minerals brings not only significant environmental impacts but also deep social and cultural consequences. These include the risk of forced displacement of Indigenous communities and threats to their cultural identity, driven by migration, territorial fragmentation, and the rapid transformation of their ways of life. Traditional decision-making structures and governance systems are also being undermined-especially as state authorities continue to disregard the right to Free, Prior and Informed Consent.

Bolivia in the Context of Rare Earth Element and Critical Mineral Extraction

Bolivia is suffering a profound economic and energy crisis resulting from the collapse of its hydrocarbon-based development model. The surge in international oil prices, combined with a sharp decline in domestic gas reserves, has triggered a severe fiscal imbalance. This crisis has far-reaching impacts across the social, political, and legal spheres and is compounded by weak democratic institutions and a lack of independence of the different branches of government.

Against this backdrop of multidimensional crisis, the national government has chosen to further entrench the extractivist development model by expanding hydrocarbon and mining frontiers into the Amazon, and is showing increased interest in the extraction of rare earth elements and critical minerals. While international attention on the energy transition has largely focused on lithium extraction projects in the country's southeast, it is essential to also pay close attention to exploration and extraction initiatives targeting rare earth elements and critical minerals in regions such as the Amazon, Chiquitanía, Chaco, and Pantanal.

As part of the expansion of the extractivist model,in 2022 Bolivia established the Vice Ministry of Technological Minerals and Rare Earth Elements as part of its extractivist expansion strategy. Two years later, in January 2024, the Ministry of Mining and Metallurgy announced the commencement of exploration activities for these resources. The national government is seeking to promote a "new, non-traditional mining" approach to meet the growing global demand in the face of the energy transition. The objective is to diversify mineral extraction beyond traditional resources-such as silver, tin, lead, zinc, and gold-towards others like nickel, cobalt, and rare earth elements. To support this, the Bolivian Mining Corporation (COMIBOL), the state-owned enterprise that manages the mining production chain, has created the National Directorate of Technological Minerals and Rare Earths.

Alongside lithium extraction in Potosí, led by Yacimientos de Litio Bolivianos (YLB), two rare earth exploration projects are currently underway in Bolivia: Cerro Manomó and Rincón del Tigre, both located in Santa Cruz department within the Chiquitanía and Pantanal regions. These projects aim to identify and quantify reserves of minerals, including thorium, niobium, nickel, cobalt, chromium, gold, and rare earth elements.

Additionally, in 2023, prospecting activities took place in San Javier (Chiquitanía), where samples of rubidium, cesium, tungsten, titanium, tantalum, lanthanum, praseodymium, europium, cerium, neodymium, samarium, and thorium were taken. To date, the results of these studies remain unpublished, and little is known about which stakeholders may be involved in the extraction phase.

Technological Minerals and Rare Earth Elements in Indigenous Territories

There is currently no official database on the presence of technological minerals or rare earth elements in Indigenous territories of the Eastern region, the Chaco, and the Amazon. However, an overlay analysis conducted by CEJIS-comparing the Map of Technological Minerals and Rare Earths in Bolivia with the surface area of the 58 Indigenous Territories formally recognized by the State-reveals that these projects are mainly concentrated in the regions of Chiquitanía, Pantanal, and Northern Amazonia.

In Chiquitanía, the Indigenous Community Lands (TCO) of Guarayos, Monte Verde, Lomerío, and Zapocó are directly threatened by the Pico Suto project, while the Bajo Paragua TCO is affected by the Cerro Manomó project. In the Pantanal, the Rincón del Tigre project is directly affecting the Pantanal TCO and the territory of the same name owned by the Ayoreo people. In the Northern Amazon, the Madre de Dios gold mining project will directly affect the Multiethnic II Territory.

In addition, projects implemented by COMIBOL in Santa Cruz department will have an indirect impact on four Indigenous territories: Guarayos, Pantanal, Tobité, and Turubó Este.

Indigenous Peoples in Voluntary Isolation and Initial Contact

Prospecting projects also pose a significant threat to Indigenous Peoples living in voluntary isolation and initial contact in the Pantanal and the transitional areas toward the Chaco. In particular, the Rincón del Tigre project directly affects the migratory routes of the last Ayoreo groups that remain in voluntary isolation.

There is no evidence that safeguards have been developed to protect the integrity of these peoples or to uphold their decision to remain in isolation, as established by Article 31 of the Political Constitution of the State, in force since 2009. In an effort to strengthen international protections, the situation of the rights of Indigenous Peoples'-including those living in voluntary isolation and initial contact- was addressed during the 24^th session of the United Nations Permanent Forum on Indigenous Issues, in the context of critical mineral extraction. On that occasion, the Forum recommended "prohibiting any economic activity, particularly exploration, research, extraction, and processing of critical minerals for the energy transition, in territories known to be inhabited by peoples in voluntary isolation."

Far from implementing this recommendation, national authorities are continuing to expand prospecting activities into regions with a confirmed presence of Indigenous Peoples in voluntary isolation and initial contact.

Absence of Prior Consultation and Environmental Information

Although the Constitution states an obligation to conduct Free, Prior and Informed Consultation (FPIC) with Indigenous Peoples before any activity that may affect their lives or rights, the national policy promoting the so-called "new non-traditional mining" - particularly the exploitation of rare earth elements and critical minerals - has not been put out to consultation with the Indigenous communities in the Chiquitanía or Pantanal TCOs.

The Pico Suto, Cerro Manomó, and Rincón del Tigre projects were not previously discussed with the Guarayo, Chiquitano, or Ayoreo Indigenous authorities. The exclusion of Indigenous communities from consultation processes is rooted in Mining and Metallurgy Law No. 535, enacted in May 2014, which exempts prospecting activities from the requirement for consultation. This provision is openly unconstitutional, as it contradicts both the national Constitution and international instruments on Indigenous rights.

The application of this law exacerbates the vulnerability of Indigenous Peoples, particularly the Ayoreo, who include groups living in voluntary isolation in the area targeted by the Rincón del Tigre project. The law allows prospecting activities to proceed without oversight or Indigenous participation, based solely on a simple administrative authorization issued by the mining authorities. This situation is further compounded by the lack of publicly available information on the environmental impacts - both at the prospecting stage and during potential future exploitation.

Conclusion

The energy transition cannot take place at the expense of the rights of Indigenous Peoples, nor through the destruction of their territories and the environment. The experience of Indigenous communities in the Chiquitanía and Pantanal regions reveals that, far from offering a departure from the extractivist model, the implementation of rare earth and critical mineral exploration and exploitation projects is actually entrenching it. This results in increased pressure on Indigenous territories and further violations of their collective rights.

The silent advance of this "new mining" in Bolivia's lowlands is already producing tangible consequences: exploration and extraction projects are being carried out without the consultation or consent of the affected Indigenous Peoples. These activities have led to significant losses of natural heritage - especially forests - and have worsened climate change impacts, such as water stress.

Bolivia is at a crossroads: it can continue down the path of extractivism or move toward development models that genuinely respect the self-determination of Indigenous Peoples. In this context, it is urgent to restore effective safeguards and ensure that Free, Prior and Informed Consultation processes are carried out at all stages of mining projects - as a minimum condition for advancing toward a truly just energy transition.

Miguel Vargas Delgado is a lawyer specializing in the rights of Indigenous Peoples and Executive Director of the Centre for Legal Studies and Social Research (CEJIS) in Bolivia.

Cover photo: Monte Verde Indigenous Territory. Photo: Nahim Aslla Ortiz - Justicia Alimentaria

Tags: Indigenous Debates