Bolivia inaugurated a steel plant funded by a Chinese loan to minimize metal imports. The Mutun megaproject, costing $546 million, is expected to produce 200,000 tons of steel annually and reduce currency outflow. The site holds over 40 billion tons of iron ore, underscoring its significance amid Bolivia’s ongoing economic challenges post-2023.
On Monday, Bolivia inaugurated a new steel plant designed to reduce its dependency on metal imports, financed primarily through a loan from China. The project, known as the Mutun megaproject, is located in Puerto Suarez, close to the Brazilian border, and has accrued a cost of approximately $546 million, as reported by News.Az.
President Luis Arce emphasized the significance of the plant, stating, “The fundamental objective is that all of us Bolivians can benefit from a natural resource that has remained dormant for many years.” The facility is anticipated to produce nearly 200,000 tons of steel annually, allowing Bolivia to substitute around 50 percent of its imports and avert a currency outflow exceeding $250 million each year, according to Jorge Alvarado from the Bolivian public firm managing the plant.
Bolivia has been grappling with significant economic challenges since 2023, having utilized much of its foreign reserves on subsidized fuel for domestic sales. China is backing this venture as part of its broader “Belt and Road Initiative,” which aims to enhance its global influence. Additionally, the geopolitical dynamics have made Latin America a critical arena in the contest between the United States and China.
Furthermore, the site is estimated to contain over 40 billion tons of iron ore, ranking it among the largest deposits in the world, according to the Bolivian government’s estimates.
Bolivia’s launch of the steel plant, financed by a Chinese loan, aims to bolster its economy by reducing reliance on metal imports and stabilizing currency outflows. While the project represents significant economic potential due to the substantial iron ore deposit, it places Bolivia within the larger geopolitical sphere influenced by China’s initiatives in South America. Given the current economic difficulties, this development may prove crucial for Bolivia’s long-term financial recovery and self-sufficiency in the steel sector.
Original Source: news.az
