The Mutun steel plant in Puerto Suarez, financed by the Export-Import Bank of China, aims to supply half of Bolivia’s steel needs and create approximately 1,000 jobs. Set to produce 200,000 metric tons of steel annually, the project represents a significant step in bolstering Bolivia’s economy, which has faced prolonged challenges. Plans for a second steel facility and ongoing trade partnerships with China signify further growth opportunities for Bolivia’s industrial sector.

A newly inaugurated steel plant in Puerto Suarez, Bolivia, funded by the Export-Import Bank of China, aims to supply half of the nation’s steel demand and stimulate economic recovery. Valued at $546 million, the Mutun plant will be managed by Sinosteel Engineering and Technology, marking its first year of operations with the expectation of generating approximately 1,000 jobs amid the country’s economic challenges, including low foreign reserves and high inflation.

Positioned to reduce the need for steel imports and enhance export capabilities, the plant is projected to produce 200,000 metric tons of steel annually, focusing on rebar and wire mesh valued at $260 million. The facility will utilize resources from the Cerro Mutun deposit, a substantial iron ore source identified across Bolivia, which is estimated to hold 40 billion tons of reserves.

After decades of delays, primarily due to disputes with a previous contractor, the project finally commenced construction with Chinese investment and was completed under the administration of President Luis Arce. Omar Portillo, a Bolivian economist, observed that the Chinese involvement has revitalized an industry long stifled by challenges faced with Jindal Steel.

Plans for a second steel plant are also being explored, which may involve further cooperation with China, as the current facility is expected to notably increase Bolivia’s steel exports, which were $23.51 million in 2023. China remains a critical trade partner for Bolivia, with 2023 exports amounting to $1.21 billion, predominantly in precious metals, zinc, and lead ores.

The expansion of trade opportunities is likely to continue, with enhanced access for Bolivian agricultural products to Chinese markets and significant Chinese investments in Bolivia’s lithium industry and construction sector. According to economist Juan Jose Bedregal, these efforts align with Bolivia’s strategic aspirations within the BRICS platform, promoting a multipolar world.

In addition to expanding trade, Chinese companies have significantly contributed to Bolivian infrastructure, including road construction. Portillo expressed the need for Bolivia to diversify its fuel supply sources and suggested creating an integration route with Chancay Port in Peru to facilitate trade growth. Such initiatives are expected to strengthen Bolivia’s economic landscape.

The establishment of the China-funded Mutun steel plant represents a pivotal development for Bolivia’s economic resurgence, promising job creation, reduced steel imports, and increased export potential. With potential expansion into a second steel plant and the strengthening of trade relations with China, Bolivia is positioning itself for enhanced industrial capacity and economic growth in alignment with broader geopolitical frameworks.

Original Source: global.chinadaily.com.cn

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