By Aurora Lane | 2025-04-04

LA PAZ -- China has championed wetland conservation at home, yet its investments in Latin America -- particularly in mining, infrastructure and oil -- are linked to the degradation of these vital ecosystems, according to a report by Latin America Sustentable.

A mid-February report reveals that multiple Chinese companies and banks are involved in projects harming at least seven Latin American wetlands protected under the Ramsar Convention, an international treaty dedicated to wetland conservation and sustainable use.

"China has strengthened wetland protection within its borders, designating 82 Ramsar Sites covering 7.6 million hectares. Yet, in Latin America and the Caribbean, its companies and banks are actively developing projects that are degrading at least seven Ramsar wetlands, spanning 6.2 million hectares," said Edgar Zamora, a researcher at Latin America Sustentable.

The specialist underscored how this situation exposes contradictions in China's domestic and international policies on climate change, energy transition and environmental protection.

Wetlands are essential ecosystems that offer crucial services, including freshwater supply, food production, building materials and biodiversity conservation.

They also play a key role in flood regulation, climate stabilization and carbon sequestration.

Despite their ecological importance, wetlands are under severe threat from mining, dams, deforestation, agriculture, aquaculture, urbanization and climate change.

These pressures have led to the loss of 64% of the world's wetlands over the past century, according to a late 2024 report by the Amazonian Network of Georeferenced Socio-Environmental Information (RAISG).

Latin America harbors some of the world's most unique wetland ecosystems.

Impact on wetlands

In Bolivia, the El Mutun steel project, led by Sinosteel Equipment & Engineering Co. Ltd. and financed by China's Eximbank, officially commenced operations on February 24. The project is located in the heart of the Bolivian Pantanal, an ecologically sensitive area.

Sara Crespo, director of the Productivity Biosphere Environment (Probioma), expressed serious concerns about the project's cumulative and synergistic effects on the Pantanal ecosystem.

In an interview with Entorno in late March, she emphasized that the Pantanal, crucial for climate regulation and flood mitigation, is both fragile and highly vulnerable.

"For the plant to function, it needs to extract iron from the Mutun ore, secure large amounts of water and ensure a stable gas supply. Each of these necessities requires significant additional infrastructure, further exacerbating environmental impacts," she explained.

One of the most pressing environmental concerns raised by the El Mutun steel project is its water consumption.

Crespo highlighted that the steelmaking process will require about 5,000 cubic meters of water per day, although other estimates suggest a rate of 120 liters per second.

"It clearly will [have an impact], especially considering the river is already under stress due to climate change and deforestation upstream," Crespo emphasized.

Deforestation is another major issue, with reports indicating that at least 118km of trees have been felled to clear the Mutun-Puerto Bush road. This figure does not account for the additional deforestation linked to the construction of the aqueduct and open-pit mining activities.

Crespo also drew attention to the environmental toll caused by the Zinc Refining Plant in Oruro, operated by Enfi Engineering Corporation and China Railway International Group Limited.

The plant's operations have already led to detrimental effects on the nearby Lakes Poopo and Uru Uru. Poopo has already dried up, while Uru Uru's water levels have significantly diminished.

Damaging delicate ecosystems

In Ecuador, the Río Blanco mining project, developed by Junefield Mineral Resources Holding Ltd., poses a significant threat to Cajas National Park, an area rich in natural biodiversity.

Situated within the Molleturo-Mollepungo protective forest and near the park's buffer zone, the project encroaches on vital ecosystems that serve as key water sources for local communities and surrounding agricultural areas.

The proximity of the mining operation to Cajas National Park raised concerns from the beginning due to potential damage to the fragile paramo ecosystems and critical water sources. Additionally, the area falls within the Cajas Massif Biosphere Reserve, a UNESCO-recognized site of global ecological importance.

Meanwhile, Oil Block 43-ITT, operated by Chuanqing Drilling Engineering, a subsidiary of China National Petroleum Corporation, is causing significant damage to the Cuyabeno, Lagartococha and Yasuni Wetland Complex -- one of the planet's most biodiverse areas.

Argentina also has witnessed significant Chinese investments that have raised environmental concerns.

Zijin Mining is advancing the Tres Quebradas mining project in the high Andean region, impacting the delicate ecosystems of the Puno lagoons in Catamarca.

Similarly, Ganfeng Lithium Co. Ltd. is involved in the Pozuelos Pastos Grandes lithium project, which affects the Laguna de los Pozuelos.

Both of these wetlands are critical to the region's biodiversity and water balance, making their protection essential for maintaining ecological health and sustainable water resources.