Bolivia inaugurated a $546 million steel plant funded by a Chinese loan to decrease metal imports. Located in Puerto Suarez, the plant is expected to produce nearly 200,000 tons of steel annually, reducing imports by 50%. President Arce highlighted its importance for national resources, while the project supports China’s Belt and Road Initiative amid U.S.-China tensions in Latin America.
On Monday, Bolivia inaugurated a steel plant aimed at reducing its dependence 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, with a total investment of $546 million. This investment extends China’s economic and political influence in South America, as reported by foreign media outlets.
President Luis Arce emphasized the project’s significance, stating, “The fundamental objective is that all of us Bolivians can benefit from a natural resource that has remained dormant for many years.” This plant is projected to produce approximately 200,000 tons of steel annually, allowing the country to replace about 50 percent of its imports and avert an annual currency outflow exceeding $250 million, according to Jorge Alvarado of the operating Bolivian public company.
Since 2023, Bolivia has been facing severe economic challenges, depleting its international reserves primarily on subsidized fuel sales domestically. The steel plant represents a strategic step towards economic recovery. Additionally, this undertaking aligns with China’s “Belt and Road Initiative,” which is central to President Xi Jinping’s efforts to enhance China’s global standing.
The relationship between Latin America and the United States has become increasingly complex, particularly as this region becomes a focal point in the geopolitical contest between the U.S. and China. Washington is exerting pressure on Latin American nations to align with its interests. Notably, the plant is situated above one of the world’s largest iron ore deposits, estimated to contain over 40 billion tons, according to Bolivian government estimates.
The inauguration of Bolivia’s steel plant marks a significant effort to enhance national production and reduce dependency on imports, with substantial financial backing from China. This development is not only crucial for Bolivia’s economic recovery amidst current challenges but also reflects the broader geopolitical dynamics between the United States and China in the region. The Mutun megaproject serves as a critical resource for harnessing Bolivia’s vast mineral wealth.
Original Source: news.az
