Bolivia inaugurated a steel plant financed by a Chinese loan, aiming to reduce metal imports and bolster its economy. The $546 million Mutun project, situated near the Brazilian border, is expected to produce 200,000 tons of steel yearly, allowing Bolivia to substitute about half of its imports. The project also reinforces China’s influence in South America.
On Monday, Bolivia inaugurated a new steel plant with funding from China, aiming to decrease its dependence on metal imports. The Mutun megaproject, located in Puerto Suarez near the Brazilian border, cost approximately $546 million and is significantly financed by the Export-Import Bank of China, reinforcing its influence in South America. President Luis Arce stated that the initiative aims to exploit Bolivia’s dormant natural resources for the benefit of its citizens.
The plant is projected to produce nearly 200,000 tons of steel annually, which would enable Bolivia to replace about 50 percent of its metal imports, helping to mitigate a yearly currency outflow exceeding $250 million, as commented by Jorge Alvarado from the operating public company. Since 2023, Bolivia has struggled economically, depleting much of its foreign reserves on domestically subsidized fuel.
China’s support for the project aligns with its “Belt and Road Initiative,” part of a broader strategy to enhance its global influence. Latin America is becoming an important arena in the geopolitical rivalry between the United States and China, with increasing pressure on regional nations to align with one of the superpowers. The Mutun site is estimated to contain over 40 billion tons of iron ore, marking it as one of the largest iron ore deposits globally according to government estimates.
In conclusion, the inauguration of the Mutun steel plant signifies Bolivia’s strategic attempt to stabilize its economy through resource utilization, supported by Chinese investment. This initiative not only aims to reduce import dependence but also enhances Bolivia’s economic resilience amidst fluctuating foreign reserves. Furthermore, it underscores China’s growing influence in the region against the backdrop of US-China rivalry.
Original Source: www.blackbeltnewsnetwork.com
