Bolivia Inaugurates Steel Plant to Reduce Metal Imports with Chinese Loan

Bolivia has inaugurated a $546 million steel plant in Puerto Suárez, funded by a loan from China to decrease its metal import dependency. The plant is expected to produce 200,000 tons of steel annually and save over $250 million in currency outflows. This project is part of China’s Belt and Road Initiative, reflecting its growing influence in South America amid increasing geopolitical tensions.

Bolivia has inaugurated a new steel plant financed by a Chinese loan, aimed at reducing the country’s dependence on metal imports. Located in Puerto Suárez, near the Brazilian border, the Mutun megaproject was established at a total cost of $546 million, financed predominantly by the Export-Import Bank of China, thereby enhancing China’s economy and political influence in South America.

President Luis Arce emphasized the project’s purpose, stating it aims to allow Bolivians to benefit from a once dormant natural resource. The steel plant is projected to produce approximately 200,000 tons of steel annually, enabling Bolivia to replace nearly 50 percent of its imports and potentially save over $250 million per year in currency outflows, according to Jorge Alvarado of the operating public company.

Bolivia is currently experiencing an economic downturn, having depleted much of its international reserves on heavily subsidized domestic fuel. The project aligns with China’s broader geopolitical strategy, particularly its Belt and Road Initiative, which seeks to expand Chinese influence worldwide. Meanwhile, Latin America has seen increased geopolitical tensions, particularly regarding the influence of the United States in contrast to that of China.

The site of the new plant is estimated to possess over 40 billion tons of iron ore, positioning it as one of the largest deposits globally, according to estimates from the Bolivian government.

In summary, the inauguration of Bolivia’s new steel plant represents a significant step towards minimizing reliance on metal imports, bolstered by a Chinese loan. This initiative not only aims to stimulate the national economy but also aligns with broader international dynamics, showcasing China’s expanding influence in Latin America amidst geopolitical tensions with the United States.

Original Source: www.france24.com