Bolivia Gives Final Nod For Construction of New $466 Million Steel Facility

SEATTLE (Scrap Monster): The Bolivian President has approved a legislation that allows investment in the proposed multi-million dollar steel plant. The country’s flagship steel project has been on hold for over a decade. According to Bolivia’s official gazette, the Bolivian President Evo Morales has also approved credit for almost 85% of the total required investment towards construction of the new steel plant near to Mutun iron ore mine.

The plant is expected to be built at a cost of $466 million. Out of this nearly $396 million will come as preferential credit from the Bank of Exports and Imports (EXIM) of China. The remaining $70 million will be contributed by the Bolivian government. The construction works of the plant will be carried out by the Chinese Sintosteel Equipment & Engineering Co.

The Chinese company has 90 days to recruit staff and commence construction activities. The construction works of the plant is expected to be completed in 30 months. The initial phase is expected to become operational within another 12 months. The operations at the country’s first steel plant are expected to begin no later than 2020. The plant is expected to generate nearly 1,500 direct jobs and almost double number of indirect jobs.

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The construction of the plant will be carried out in three phases. The first phase involves construction of iron ore concentration plant, pelletizing plant and direct reduction plant. In the initial phase, the steelworks will have capacity to produce nearly 190,000 mt per year of long products. The second phase involves construction of a caster to produce 450,000 mtpy flat products.  The third phase will enhance the mill capacity to 450,000 mtpy of long steel and 550,000 mtpy of flat steel.

The proposed plant is part of government’s attempts to industrialize steel by making best use of Mutun iron deposit. The historic decision will help the country to enter the age of steel, said Bolivia’s Deputy Employment Minister Emilio Rodas.