Bolivia inaugurated a $546 million steel plant in Puerto Suárez, funded by a Chinese loan, to reduce reliance on metal imports. The facility is projected to produce 200,000 tons of steel annually, replacing 50% of imports and mitigating a $250 million yearly currency outflow. This aligns with China’s Belt and Road Initiative and enhances Bolivia’s economic standing amidst US-China geopolitical tensions.
On Monday, Bolivia inaugurated a new steel plant in Puerto Suárez, a significant step towards reducing its reliance on imported metals. Funded primarily through a loan from China’s Export-Import Bank, the project cost approximately $546 million. This initiative not only aims to bolster Bolivia’s steel production but also to enhance China’s economic influence in South America.
President Luis Arce emphasized that the project’s fundamental goal is to utilize Bolivia’s untapped natural resources for the benefit of its citizens. The plant is expected to produce nearly 200,000 tons of steel annually, enabling the country to replace about 50 percent of its imports and prevent an annual currency outflow exceeding $250 million, according to Jorge Alvarado from the operating public company.
Bolivia has faced significant economic challenges since 2023, largely depleting its international reserves on subsidized fuel sales. The support from China aligns with its “Belt and Road Initiative“, a strategy aimed at expanding its global reach. This has positioned Latin America as a strategic area amid rising tensions between China and the United States, prompting countries in the region to navigate their affiliations carefully.
The steel plant is situated near one of the world’s largest iron ore deposits, estimated to contain over 40 billion tons. This abundant resource positions Bolivia favorably within the global market, providing an opportunity to enhance its industrial capabilities and economic standing.
In summary, the inauguration of Bolivia’s new steel plant marks a pivotal moment for the country as it aims to harness its natural resources and reduce import reliance. Financed through a Chinese loan, this $546 million investment not only enhances Bolivia’s manufacturing capacity but also signifies China’s growing influence in South America while positioning the country strategically amid global economic pressures.
Original Source: www.france24.com
