Bolivia’s new China-funded steel plant in Puerto Suarez aims to meet half the country’s steel demand, creating 1,000 jobs and enhancing economic recovery. The $546 million project, managed by Sinosteel, is set to reduce import reliance and expand exports, while exporting $260 million worth of steel annually. The collaboration marks a significant step in strengthening Bolivia’s trade ties with China.
A new steel plant in Puerto Suarez, Bolivia, primarily financed by the Export-Import Bank of China, is poised to significantly boost local industrial recovery. The $546 million Mutun plant, inaugurated on February 24, will be managed by Sinosteel Engineering and Technology, a subsidiary of the Chinese state-owned Sinosteel Corporation. This facility is projected to fulfill half of Bolivia’s steel demand, thereby aiding the nation amidst economic challenges such as low foreign currency reserves and high inflation.
The Mutun plant, which will manufacture 200,000 metric tons of steel annually, is expected to create approximately 1,000 job opportunities for Bolivians. Moreover, it will produce rebar and wire mesh valued at $260 million, utilizing raw materials sourced from the Cerro Mutun deposit, one of the largest iron ore reserves globally, estimated at 40 billion tons. Economic experts believe the project’s impact extends to reduced reliance on steel imports and expanded export potential.
Omar Portillo, an economist from the Higher University of San Andres, emphasized that the new steel exports will play a vital role, particularly as Bolivia targets northeastern Brazil with competitive pricing. After enduring five decades of delays attributed to prior contractor Jindal Steel Bolivia, the venture gained momentum through Chinese investment, leading to completion under President Luis Arce’s administration. Efforts are underway for a second steel plant, potentially fostering more Sino-Bolivian collaboration.
China continues to emerge as Bolivia’s primary trading partner, especially in the mining and industry fields, with exports to China amounting to $1.21 billion in 2023. The bilateral relations are projected to strengthen, as opportunities arise for Bolivian food products in the Chinese market through involvement in lithium production.
Juan Jose Bedregal, an economist, underlined that the cooperative ties with China align with Bolivia’s ambition to participate in the BRICS economic community. Furthermore, the focus on enhancing logistics and construction capabilities is evidenced by Chinese investments in paved road construction across Bolivia. Portillo noted that improving proximity to Chancay Port in Peru and fostering closer ties with China will be crucial for bolstering Bolivia’s trade and export capacity.
The inauguration of the Mutun steel plant signifies a pivotal step in Bolivia’s industrial recovery, supported by Chinese investment. With significant job creation and reduced import dependence, the project not only revitalizes Bolivia’s economy but also sets the stage for enhanced trade relations, particularly in the context of food and resource exports. The collaboration with China marks a new era of opportunities for Bolivia’s development within the growing BRICS framework.
Original Source: global.chinadaily.com.cn
