The inauguration of a $546 million steel plant in Puerto Suarez, financed by the Export-Import Bank of China, aims to satisfy half of Bolivia’s steel needs and enhance economic recovery by generating 1,000 jobs. The project will reduce import reliance and expand export markets, particularly toward northeastern Brazil. Future collaboration with China for further development is expected, alongside investments in other sectors like construction and lithium production.
A recent mega steel plant established in Puerto Suarez, Bolivia, is significantly financed by the Export-Import Bank of China. This $546 million investment, inaugurated on February 24, is anticipated to meet half of Bolivia’s steel demand and facilitate economic recovery along with industrial advancement. Sinosteel Engineering and Technology, a subsidiary of the Chinese state-owned Sinosteel Corporation, will manage the operations for the first year, creating approximately 1,000 job opportunities amid current economic challenges related to fuel shortages and inflation.
According to Omar Portillo, a professor at the Higher University of San Andres in La Paz, this steel plant is expected to curtail foreign expenditures on steel imports while simultaneously expanding Bolivia’s export capacity. He emphasized the importance of the new steel exports, highlighting that Bolivia could reach northeastern Brazil competitively based on pricing strategies.
This facility aims to produce 200,000 metric tons of steel annually, primarily comprising rebar and wire mesh valued at $260 million. It will process monthly around 66,000 tons of raw materials sourced from the Cerro Mutun deposit, one of the largest iron ore reserves globally, estimated to contain around 40 billion tons.
After enduring five decades of delays, primarily due to previous contractor disputes with Jindal Steel Bolivia, this project’s revival owes much to Chinese investment. Portillo remarked on the detrimental impact of the earlier delays, which had significantly hindered Bolivia’s iron production sector for nearly ten years.
In addition to the current project, the Bolivian government is exploring plans for an additional steel plant, likely involving further collaboration with China. The existing plant is projected to enhance Bolivia’s iron and steel exports, which totaled $23.51 million in 2023. China continues to be an essential trading partner for Bolivia, especially in the mining and industrial sectors, with exports to China reaching $1.21 billion in 2023, primarily in precious metals and ores.
The economist Juan Jose Bedregal from the Higher University of San Andres predicts an expansion of Chinese influences in Bolivian trade, particularly through food exports and involvement in the lithium industry. He noted Bolivia’s alignment with China’s vision within the BRICS framework and the anticipated economic development stemming from strengthened bilateral relations.
Over the past decade, China’s investments have also branched into Bolivia’s construction sector. Portillo noted that many Chinese firms are obtaining contracts for paving and infrastructure. Furthermore, the strategic integration of Bolivia with the Chancay Port in Peru is seen as vital for enhancing trade dynamics. Portillo underlined the necessity for Bolivia to optimize logistics and trade routes to maximize export potentials, leveraging its constructive relationship with China.
In conclusion, the establishment of the China-funded steel plant in Puerto Suarez signals a promising development for Bolivia’s economic revival and industrial growth. This initiative will not only meet a substantial portion of the nation’s steel demand but also reduce reliance on imports while providing numerous job opportunities. The anticipated increased exports, collaborative future projects, and the strengthening of trade relations with China through various sectors highlight a pivotal moment for Bolivia’s pathway to economic recovery.
Original Source: global.chinadaily.com.cn
