Bolivia Inaugurates New Steel Plant to Enhance Economic Self-Sufficiency
Bolivia inaugurated a steel plant financed by a Chinese loan to reduce metal import reliance. The mutun megaproject, costing $546 million, aims to produce 200,000 tons of steel annually, decreasing imports and foreign currency outflow. Additionally, it reflects growing Chinese influence in South America amid regional geopolitical tensions.
Bolivia has inaugurated a steel plant in Puerto Suarez, financed largely by a loan from China, aimed at reducing the country’s dependence on metal imports. The Mutun megaproject, at a cost of $546 million, marks an expansion of Chinese economic influence in South America, particularly through the Export-Import Bank of China.
During the inauguration, President Luis Arce emphasized, “The fundamental objective is that all of us Bolivians can benefit from a natural resource that has remained dormant for many years.” The plant is expected to generate nearly 200,000 tons of steel annually, enabling Bolivia to replace approximately 50 percent of its metal imports and potentially save over $250 million in currency outflow.
Bolivia has faced significant economic challenges since 2023, depleting its international reserves primarily for fuel sold at subsidized rates domestically. This steel facility aligns with China’s Belt and Road Initiative, reflecting President Xi Jinping’s strategy to widen China’s global influence.
Furthermore, the site is estimated to contain over 40 billion tons of iron ore, categorizing it as one of the world’s largest deposits according to Bolivian government data. As tensions rise between the U.S. and China, Latin America finds itself at a crossroads, with increasing pressure for alignment arising from Washington.
In summary, the inauguration of Bolivia’s new steel plant, financed through a Chinese loan, illustrates the strategic economic partnership between Bolivia and China. This project aims to reduce import dependency, preserve foreign currency, and unlock the country’s mineral wealth. As Bolivia navigates its economic recovery, the facility also signifies China’s expanding influence in the region amidst geopolitical tensions.
Original Source: www.hurriyetdailynews.com
