Bolivia inaugurated a steel plant financed by a Chinese loan to reduce metal imports. The $546 million Mutun megaproject in Puerto Suárez is expected to produce 200,000 tons of steel annually, aiming to replace 50% of imports and save $250 million per year. This initiative also aligns with China’s Belt and Road Initiative, reflecting growing geopolitical dynamics in Latin America.
Bolivia has inaugurated a new steel plant in Puerto Suárez, financed largely through a loan from China, as part of a strategy to curb metal imports and bolster its economy. The Mutun megaproject, which cost approximately $546 million, aims to leverage Bolivia’s significant iron ore reserves and diminish reliance on foreign metal sources.
President Luis Arce emphasized that the primary goal of the plant is to allow Bolivians to benefit from a dormant natural resource. Jorge Alvarado from the operating company stated the plant is expected to produce around 200,000 tons of steel annually, enabling Bolivia to replace approximately half of its metal imports and save over $250 million in currency outflows each year.
Bolivia’s economy has struggled since 2023, primarily due to the depletion of international reserves attributed to domestic fuel subsidies. The project’s backing by China is aligned with their “Belt and Road Initiative,” which seeks to enhance China’s influence in Latin America amid growing tensions with the United States. The iron ore deposit at the site is estimated to contain over 40 billion tons, positioning it as one of the largest in the world according to government estimates.
In summary, the inauguration of the steel plant in Bolivia marks a significant step towards economic independence through resource utilization. The investment from China not only aims to enhance local production but also reflects the strategic geopolitical interests in the region. With ample iron ore resources, Bolivia aspires to improve its economic resilience and reduce import dependencies.
Original Source: www.france24.com
