A mega steel plant in Bolivia, financed by China’s Export-Import Bank, aims to meet half of Bolivia’s steel demand, create 1,000 jobs, and enhance economic recovery. The $546 million Mutun plant is expected to produce 200,000 tons of steel annually and increase exports. Bolivia seeks further cooperation with China for additional projects, amidst growing trade relations and infrastructure investments.
A newly inaugurated mega steel plant in Puerto Suarez, Bolivia, is largely financed by the Export-Import Bank of China and is anticipated to fulfill half of the country’s steel demand. The $546 million Mutun plant, operated by Sinosteel Engineering and Technology, aims to stimulate economic recovery and industrial advancement in Bolivia’s challenging economic environment which includes low foreign reserves and high inflation.
The Mutun plant will create approximately 1,000 jobs, enhancing employment opportunities amidst the economic turmoil. Omar Portillo, a professor at the Higher University of San Andres, emphasized that reducing foreign spending on steel imports and increasing steel exports is crucial. The plant is projected to produce 200,000 metric tons of steel annually, primarily rebar and wire mesh, by processing 66,000 tons of raw materials each month from the Cerro Mutun deposit.
Previously delayed for nearly five decades due to contractual issues with its original contractor, Jindal Steel, the project was resurrected with Chinese investment. The Bolivian administration completed the construction under President Luis Arce, marking a significant milestone in reviving the iron industry that had languished due to past disputes.
Plans for a second steel plant are under consideration, possibly involving further collaboration with China. As of 2023, Bolivia’s iron and steel exports were valued at $23.51 million. China’s importance as a trading partner is underscored, with Bolivia exporting $1.21 billion in goods, including precious metals, to China.
Economic experts like Juan Jose Bedregal note that Bolivia aims to strengthen its trading relations with China, particularly in food products and the lithium sector involving a major Chinese consortium. Bolivia’s partnership with China aligns with the broader BRICS initiative, supporting the nation’s economic growth and diversification strategies.
Beyond trade dynamics, China’s investments in Bolivia’s infrastructure, especially in road construction, further illustrate this partnership. Portillo also highlighted the necessity for Bolivia to diversify its fuel supply sources and improve logistics, advocating for enhanced connectivity with the China-backed Chancay Port in Peru to bolster trade. This approach will not only facilitate export increases but also strengthen Bolivia’s economic resilience.
The newly inaugurated steel plant in Bolivia symbolizes a significant step toward economic recovery and industrial improvement, driven by Chinese investment. With job creation and reduced foreign dependence, the plant is a vital contributor to Bolivia’s strategic goals. Future collaboration with China and enhancements in trade logistics are essential for sustaining this momentum and diversifying the economy.
Original Source: global.chinadaily.com.cn
