Policy makers at the Bolivian Chamber of Deputies approved the country to contract a foreign loan for $396 million to back the construction of an iron and steel complex at state-owned company Empresa Siderurgica del Mutun (ESM).
China’s Eximbank is expected to provide the $396 million financing for the $422.6 million project, while the Bolivian government should assume the remaining investments, SteelOrbis has learned.
The 250,000/mt annual sponge iron project was initally expected to launch construction in 2017 for a 30-month period. With the updated schedule, the complex is expected begin construction in June 2018, complete construction by late 2021, and begin operations by early 2021.
The iron and steel complex will be in the Bolivian city of Puerto Suarez.
China’s Sinosteel is responsible for executing the project, as previously reported by SteelOrbis.