According to La Voz de Tarija on July 7, Bolivia’s Ministry of Mining and Metallurgy reported that six of the seven plants of the large Mutún steel complex, that has been under construction for several years in Puerto Suárez, in the southeastern part of the department of Santa Cruz, will officially begin operations in September. This is a cause for great celebration, as this huge project, for which China’s Sinosteel Equipment and Engineering Co. is the main contractor, will allow Bolivia to begin processing and industrializing the vast iron ore reserves, found at “Mutún Mountain,” (Cerro Mutún), which is close to Puerto Suárez. The Mutún iron ore reserves, estimated at 40 billion tons, are considered to be the largest in the world and extend into neighboring Brazil.
Throughout its entire history, Bolivia has never produced steel out of its world-class iron deposits—until now. With China’s help, they are finally industrializing their own resources. It is an anti-colonial example of economic development which EIR has dubbed “the Mutún model,” worthy of being followed throughout the developing sector, once they break free of the City of London and Wall Street.
In a May 23 interview with Cadena A-Santa Cruz posted on Facebook Jorge Alvarado Rivas, president of the Mutún Steel Company, that has administrative control over the project, referred to Cerro Mutún as the “sleeping giant that has awakened” because of the enormous development potential it represents—not just for industrialization of iron ore but for “the industrialization of Bolivia.” Works at the project are 92% complete, he said, and except for the direct reduction plant, which won’t be operational until February of 2025, the six other plants will start operations in September.
The six others at the 42-hectare Mutún complex include one for iron ore concentration, pelletization, lamination, steel conversion, a rolling mill, and a power station with related infrastructure and services. As Alvarado explained, the goal is for the project to become a major industrial hub for the country, with the necessary infrastructure and establishment of smaller factories and businesses that will transform the economically-depressed Puerto Suarez and the surrounding region, providing thousands of productive jobs. Currently, Bolivia imports 450,000 tons of steel annually, largely from Peru, Argentina and Brazil. When fully operational, the Mutún complex will produce 200,000 tons of steel annually, which will allow Bolivia to reduce its import bill by half.
China’s Ambassador to Bolivia Wang Liang visited Puerto Suárez in early July to tour the steel complex, accompanied by other embassy personnel and representatives from Sinosteel. Ambassador Wang commented at the time that “China and Bolivia are strategic partners … and this project is emblematic of China-Bolivia cooperation. I am confident that through this project we are going to support the Bolivian people and government to improve Bolivia’s economic conditions.” Ahora el Pueblo reported June 26 that following a six-month training period in Bolivia, 33 young Bolivian professionals were selected to spend another six months in China for intensive specialized technical training to prepare them for running the Mutún steel complex. According to Jorge Alvarado, these young professionals “will be the future operators and administrators of the steel complex.”
