Bolivia inaugurates a new steel plant in Puerto Suarez to reduce metal imports. Funded by a Chinese loan, the facility is expected to produce 200,000 tons of steel annually, lessening foreign currency outflow. It aligns with China’s Belt and Road Initiative amid rising geopolitical tensions in Latin America.
Bolivia has inaugurated a new steel plant in Puerto Suarez, aimed at reducing reliance on metal imports. This project, known as the Mutun megaproject, was constructed at a total cost of $546 million, significantly financed through a loan from the Export-Import Bank of China. Such endeavors are indicative of China’s expanding economic influence in South America.
President Luis Arce emphasized that the primary goal of this initiative is for Bolivians to benefit from dormant natural resources. The new plant is projected to produce nearly 200,000 tons of steel annually, which will enable Bolivia to replace approximately 50 percent of its steel imports, saving more than $250 million in currency outflow each year.
Bolivia’s economy has faced challenges since 2023, drastically depleting its international reserves due to fuel subsidies. The steel plant was launched as part of China’s broader Belt and Road Initiative, a strategic effort to extend China’s global presence.
Latin America is currently a focal point in the geopolitical rivalry between the United States and China, with regional countries experiencing pressure to align with one side. With estimates indicating that the site houses over 40 billion tons of iron ore, it is recognized as one of the largest deposits globally, pointing to significant potential for Bolivia’s mining sector.
The inauguration of the steel plant in Bolivia represents a strategic move towards economic independence and resource utilization. Financed largely by Chinese investment, this facility aims to replace significant steel imports and alleviate economic challenges. As international dynamics shift and countries navigate the influence of global powers, Bolivia’s efforts underscore the importance of natural resource management.
Original Source: www.hurriyetdailynews.com
