Bolivia has opened a new steel plant funded by a Chinese loan to reduce metal imports amid foreign currency shortages. The $546 million Mutun megaproject aims to utilize the region’s iron ore resources and bolster the economy, producing 200,000 tons of steel per year and decreasing import reliance by 50%.
Bolivia inaugurated a new steel plant on Monday, which is funded primarily by a loan from China. This initiative aims to decrease dependence on metal imports due to foreign currency shortages. The Mutun megaproject, situated in Puerto Suarez near the Brazil border, represents an investment of $546 million supported by the Export-Import Bank of China, highlighting China’s expanding economic influence in South America.
President Luis Arce emphasized the importance of utilizing Bolivia’s dormant natural resources, stating, “The fundamental objective is that all of us Bolivians can benefit from a natural resource that has remained dormant for many years.” The plant is projected to produce approximately 200,000 tons of steel annually, potentially replacing about 50% of metal imports and preventing an annual currency outflow of over $250 million, according to Jorge Alvarado from the operating public company.
Since 2023, Bolivia has faced significant economic challenges, relying heavily on international reserves for subsidized domestic fuel sales. China’s backing of the steel plant forms part of its broader Belt and Road Initiative, a strategy aimed at enhancing its global reach and influence.
The mining site is estimated to contain over 40 billion tons of iron ore, positioning it as one of the largest iron deposits worldwide, based on estimates from the Bolivian government. The project’s significance is further underscored by its potential impact on the U.S.-China geopolitical landscape in Latin America, where countries are increasingly influenced by the competing interests of both nations.
In summary, Bolivia’s newly inaugurated steel plant, financed by a Chinese loan, aims to significantly reduce metal imports and stimulate local resource utilization. The Mutun megaproject, projected to produce 200,000 tons of steel annually, is a key step in addressing Bolivia’s economic challenges while enhancing China’s geopolitical presence in the region. Its rich iron ore deposits are poised to play an important role in future national development.
Original Source: news.az
