Bolivian Government to Cancel State-owned Company to Extract Lithium Reserves

Bolivian President Evo Morales, ceding to pressure from leaders in the southwestern province of Potosi, backed down from a plan to create a state-owned company to extract lithium reserves from the Uyuni Salt Flats.

In an interview Sunday with state television, Mining Minister Jose Pimentel said the government decided to repeal a decree creating Empresa Boliviana de Recursos Evaporiticos, or EBRE.

The decision came after the Potosi civic committee threatened to stage strikes and set up roadblocks if the decree was not rescinded before Tuesday.

That organization said authorities founded the La Paz-based company without consulting the region or taking into account that Uyuni is located in Potosi.

“The decree has been repealed and we think that with this step we’re dropping any stance of centralism or interference in autonomous affairs that we’ve been accused (of adopting),” Pimentel said.