Bolivia establishes steel plant, with Chinese financing

Photo: Unsplash.

According to a report by Reuters, a steel plant has been inaugurated in Bolivia, specifically in the eastern region of the country, in Mutún, near the border with Brazil. This plant, a project that had been in the works for 50 years, was financed by China through its Export-Import Bank. Bolivian authorities have stated that the plant’s production capacity will be sufficient to meet half of the country’s domestic steel demand.

The Mutún plant, valued at $546 million, will be operated in its first year by the Chinese company Sinosteel Engineering and Technology. Following its inauguration on February 24, 2025, the plant is expected to produce 200,000 metric tons of steel annually, primarily focusing on rebar and wire mesh, with an estimated market value of $260 million.

Bolivian Minister of Mining, Alejandro Santos Laura, emphasized in a press conference that the country is entering a new phase of industrialization. This aligns with the agenda of President Luis Arce, who has consistently stressed the importance of accelerating economic recovery, particularly in light of one of the most significant declines in gas exports in recent years. The downturn has impacted the local currency and left the Central Bank with dwindling foreign reserves.

The steel plant was originally planned to be developed by the Indian company Jindal Steel & Power Ltd. However, disputes between the company and the Bolivian government ultimately prevented the project from moving forward.

The newly established facility will have the capacity to process 66,000 metric tons of raw material per month, sourced from the iron deposits of Cerro Mutún—one of the world’s largest iron ore reserves, estimated at 40 billion tons.

Last but not least, Bolivian authorities have indicated that once the plant reaches full operational capacity, they will consider constructing a second facility. In its initial phase, the steel plant is expected to create 700 jobs, with the potential to expand its workforce to 1,000 in the future.

Main Source:

Bolivia pone en marcha planta siderúrgica financiada por China – Reuters

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