Bolivia Unveils Steel Plant Funded by Chinese Investment to Boost Economy
Bolivia has launched a new steel plant funded through a loan from China, with a total cost of $546 million. The facility aims to produce 200,000 tons of steel annually, significantly reducing imports and currency outflows. This project is part of China’s Belt and Road Initiative, enhancing its influence in South America while Bolivia seeks economic recovery amid challenges since 2023.
Bolivia recently inaugurated a steel plant in Puerto Suarez, financed significantly by a loan from the Export-Import Bank of China. The project, known as the Mutun megaproject, was built at a total cost of $546 million. This development aims to diminish Bolivia’s dependence on metal imports amid ongoing foreign currency shortages.
President Luis Arce emphasized that the primary objective of the steel plant is to enable Bolivians to benefit from their natural resources, previously untapped for years. The new facility is expected to produce nearly 200,000 tons of steel annually, allowing Bolivia to replace about 50 percent of its metal imports and prevent an outflow of over $250 million in currency.
The Bolivian economy has faced significant challenges, particularly since 2023, primarily due to the depletion of international reserves spent on domestic fuel subsidies. The support from China aligns with the Belt and Road Initiative, a strategy aimed at expanding Chinese economic and political influence throughout the world.
Bolivia’s Mutun site is estimated to contain over 40 billion tons of iron ore, classifying it as one of the globe’s largest ore deposits. The strategic alignment between China and Bolivia occurs amid heightened geopolitical tensions, as Latin America becomes an increasingly vital arena in the US-China dynamic.
The inauguration of Bolivia’s new steel plant signifies a critical step in the country’s aim to harness its natural resources and reduce reliance on imports, facilitating economic recovery. With substantial backing from China, this project reflects broader geo-economic strategies impacting Latin America amid global power shifts.
Original Source: news.az
