Bolivia has inaugurated a steel plant in Puerto Suarez, financed by a Chinese loan, to reduce metal import reliance. The plant aims to produce 200,000 tons of steel annually, mitigating currency outflow. The project highlights China’s expanding influence in South America through the Belt and Road Initiative amid U.S.-China tensions.
Bolivia has inaugurated a steel plant designed to reduce its dependency on metal imports, funded primarily through a loan from China. The Mutun megaproject, located in Puerto Suarez near the Brazilian border, carries a total cost of $546 million and is financed by the Export-Import Bank of China, thereby enhancing China’s economic and political presence in South America.
During the inauguration, President Luis Arce emphasized the project’s aim to benefit Bolivians from a previously underutilized natural resource. The plant is projected to produce approximately 200,000 tons of steel annually, allowing Bolivia to replace about 50 percent of its metal imports and prevent an estimated currency outflow exceeding $250 million per year, as stated by Jorge Alvarado from the operating public company.
The economic landscape in Bolivia has been challenging since 2023, as the nation depleted much of its international reserves to subsidize domestic fuel prices. The steel plant aligns with China’s broader “Belt and Road Initiative,” which is integral to President Xi Jinping’s strategy to bolster China’s global influence. This initiative places Latin America as a crucial area in the geopolitical competition between the United States and China.
This site is estimated to contain over 40 billion tons of iron ore, making it one of the most significant deposits globally, according to Bolivian government assessments. The successful operation of this steel plant may present new opportunities for Bolivia amidst various economic challenges.
The inauguration of Bolivia’s steel plant signifies a significant step toward economic self-sufficiency and reduced reliance on metal imports, facilitated by Chinese investment. This project not only aims to curtail currency outflows but also positions Bolivia strategically within the global economic context, particularly amid geopolitical tensions in Latin America. The facility taps into one of the largest iron ore deposits, potentially enhancing Bolivia’s industrial capabilities.
Original Source: news.az
