Bolivia inaugurated a steel plant financed by a Chinese loan to reduce metal imports. The $546 million Mutun megaproject aims to produce 200,000 tons of steel yearly, potentially replacing about 50% of imports. The initiative aligns with China’s Belt and Road Initiative and represents a strategic move in the U.S.-China geopolitical landscape.
Bolivia has inaugurated a new steel plant in Puerto Suárez, intended to reduce the country’s reliance on metal imports. The facility was financed with a $546 million loan from the Export-Import Bank of China, further expanding China’s influence in South America. President Luis Arce emphasized that the plant aims to benefit Bolivians by utilizing a long-dormant natural resource.
The steel plant is projected to produce nearly 200,000 tons of steel annually, which could replace approximately 50 percent of steel imports. Jorge Alvarado from the operating public company noted that this output would help avoid an annual currency outflow exceeding $250 million. Bolivia is currently grappling with an economic crisis, having depleted much of its international reserves on domestically subsidized fuel.
This project aligns with China’s “Belt and Road Initiative,” which is a significant element of President Xi Jinping’s strategy for enhancing China’s global reach. Amidst increasing geopolitical pressures, particularly from Washington, Latin American countries have become critical areas of contention in the U.S.-China rivalry. The steel plant’s location is significant as it is near a site estimated to contain over 40 billion tons of iron ore, among the largest deposits globally, according to Bolivian government estimates.
The inauguration of the steel plant marks a pivotal initiative for Bolivia, aiming to enhance self-sufficiency in steel production and reduce import dependency. Financed largely by China, this project not only promises economic benefits but also underscores the increasing geopolitical influence of China in Latin America amidst U.S. pressures. The rich iron ore resources further enhance the project’s significance, potentially transforming Bolivia’s economic landscape.
Original Source: www.france24.com
