Bolivia has inaugurated a $546 million steel plant in Puerto Suárez, funded by a Chinese loan, to reduce metal imports and utilize local resources. This project, part of China’s Belt and Road Initiative, aims to produce 200,000 tons of steel annually, replacing half of current imports. The site holds significant iron ore deposits, bolstering Bolivia’s economic strategy amid rising pressures from the US-China rivalry.
Bolivia has inaugurated a new steel plant in Puerto Suárez, funded by a loan from China, aimed at decreasing its dependence on metal imports. The Mutun megaproject represents an investment of $546 million, largely financed by the Export-Import Bank of China, thereby enhancing China’s influence in South America.
President Luis Arce emphasized, “The fundamental objective is that all of us Bolivians can benefit from a natural resource that has remained dormant for many years.” The facility is expected to produce approximately 200,000 tons of steel annually, which could replace about 50% of Bolivia’s imports, saving over $250 million in annual currency outflow, according to Jorge Alvarado from the operating public company.
Since 2023, Bolivia’s economy has struggled, depleting much of its international reserves on subsidized domestic fuel. The project aligns with China’s Belt and Road Initiative, essential to President Xi Jinping’s strategy for expanding global reach. Moreover, Latin America has become a significant arena in the US-China rivalry, where regional nations face rising pressure from Washington to align with either side.
Established estimates indicate that the site comprises over 40 billion tons of iron ore, marking it as one of the world’s largest iron ore deposits, according to the Bolivian government.
The inauguration of the steel plant in Bolivia, primarily financed by a Chinese loan, is a strategic move to bolster domestic steel production and lessen import dependence. As the Bolivian economy seeks recovery, this project not only addresses resource utilization but also solidifies China’s economic influence in the region amid global strategic tensions between the US and China.
Original Source: www.france24.com
