Bolivia has inaugurated a $546 million steel plant funded by China to reduce metal import reliance. The facility is expected to produce 200,000 tons of steel annually, saving over $250 million in foreign currency. This project aligns with China’s Belt and Road Initiative and reflects the country’s strategy to strengthen its presence in South America amidst increasing US-China tensions.
Bolivia has inaugurated a steel plant near Puerto Suarez, funded by a loan from China, as a strategy to mitigate its dependence on metal imports. The Mutun megaproject, which cost $546 million, was primarily financed by the Export-Import Bank of China. This development signifies China’s increasing economic presence in South America, as reported by News.Az.
President Luis Arce emphasized that the project aims to utilize Bolivia’s dormant natural resources for the benefit of its citizens. The steel plant is expected to produce nearly 200,000 tons of steel annually, replacing about 50% of imports and saving over $250 million in foreign currency outflows, as stated by Jorge Alvarado from the operating public company.
Since 2023, Bolivia’s economy has suffered due to its dwindling international reserves, largely spent on subsidizing domestic fuel prices. The establishment of the steel plant is also aligned with China’s Belt and Road Initiative, which seeks to expand its global influence.
The geopolitical landscape in Latin America is complex, as nations face pressure from the United States amidst its competition with China. The Mutun site contains one of the largest iron ore deposits in the world, with estimated reserves of over 40 billion tons, highlighting its potential significance for Bolivia’s economic revival.
Bolivia’s new steel plant represents a significant investment aimed at fostering economic self-sufficiency while reducing metal import dependence. Funded through a Chinese loan, the venture underscores the growing Sino-Bolivian ties, especially amid geopolitical tensions in Latin America where influence battles between the US and China are becoming more pronounced. With substantial iron ore reserves, the plant could play a crucial role in revitalizing Bolivia’s economy.
Original Source: news.az
