La Paz, Bolivia — A significant milestone in Bolivia’s industrialisation efforts is set to occur on February 24th with the inauguration of the Mutun steel plant.
The US$546 million (3.97 billion yuan) project, funded by the Export-Import Bank of China, is located near the Brazilian border and is expected to cover half of Bolivia’s domestic steel needs.
Operated initially by Sinosteel Engineering and Technology for its first year, the plant has a projected annual output of 200,000 tonnes of steel, including essential construction materials like rebar and wire mesh, valued at US$260 million.
The plant will process 66,000 tonnes of raw materials monthly, sourced directly from the Cerro Mutun deposit, which holds an estimated 40 billion tonnes of iron ore, making it one of the world’s largest reserves.
“We are entering an era of industrialisation,” declared Bolivian Mining Minister Alejandro Santos Laura at a recent press conference, highlighting the project’s importance to the nation’s economic future.
The Mutun project overcomes more than five decades of delays and complications, including previous disputes with Jindal Steel & Power from India, the initially contracted builder.
President Luis Arce’s administration views the plant as a crucial step in revitalising the Bolivian economy amid declining gas exports that have impacted foreign reserves and local currency.
Looking ahead, officials are considering the construction of a second plant to capitalise on surplus production once domestic demand is fully met.
While no specific timeline has been provided, Santos Laura affirmed, “When we pass 100 per cent… we are going to build another plant, much better than the current one.
“We will have no choice but to export the surplus abroad.”
The Mutun plant is expected to generate 700 jobs during its initial phase and up to 1,000 jobs throughout its operational lifespan, providing a boost to the local economy.
In addition to the steel plant, Bolivia is also actively pursuing the exploitation of its extensive lithium deposits.
The government is currently working on finalising agreements with investors for the construction of lithium processing plants.
Despite challenges such as low lithium prices and resistance from some lawmakers and citizens, Bolivia is moving forward with its lithium development plans, aiming to diversify its economy and capitalise on its natural resources.
