A major steel plant in Puerto Suarez, Bolivia, largely funded by the Export-Import Bank of China, has begun operations and is set to supply half of the country’s steel demand, according to media reports.
The USD 546 mln Mutun plant, operated by Sinosteel Engineering and Technology, aims to reduce Bolivia’s reliance on imports and expand exports. Economist Omar Portillo highlights its strategic importance, particularly for supplying northeastern Brazil at competitive prices.
The facility will produce 200,000 tons of rebar and wire rod annually while processing 800,000 tons of iron ore from the vast Cerro Mutun deposit.
The project faced multiple delays, including disputes between the government and the initial contractor, India’s Jindal Steel & Power Ltd. In 2014, Jindal Steel Bolivia won a USD 22.5 mln arbitration ruling against Bolivia’s state-run Empresa Siderurgica del Mutun (ESM), arguing that lack of access to project land violated the contract.