Bolivia, a South American country, has officially inaugurated the Mutun steel plant in Puerto Suarez, near the country’s border with Brazil, in a bid to reduce its dependence on metal imports. The $546 million megaproject was largely financed by a loan from the Export-Import Bank of China, further strengthening China’s economic and political influence in South America.
“The fundamental objective is that all of us Bolivians can benefit from a natural resource that has remained dormant for many years,” President Luis Arce said at the event.
The Plant is expected to produce approximately 200,000 tons of steel annually, significantly reducing Bolivia’s reliance on imports, allowing them to replace about 50 percent of imports and prevent a currency outflow exceeding $250 million each year, according to Jorge Alvarado of the Bolivian public company that will operate the site.
The country has been in a deep economic rut since 2023, having used much of its international reserves on fuel, which it sells domestically at subsidized prices. The project received backing from China as part of the “Belt and Road Initiative,” a key component of President Xi Jinping’s strategy to strengthen global influence.
Latin America has become a central battleground in the ongoing rivalry between the U.S. and China, with Washington intensifying pressure on countries in the region to align with its stance amid President Donald Trump’s confrontation with Beijing.
The Bolivian government estimates state that the site is believed to hold more than 40 billion tons of iron ore, making it one of the largest deposits in the world.