Chinese state-run contractor Sinosteel was chosen by the government of Bolivia to develop the Mutún iron and steel complex, a Bolivian government official said.
“We decided to make a direct invitation to the company that has a higher experience level, which is in this case Sinosteel Equipment & Engineering Co., a Chinese state-run company,” said Bolivia’s mining minister, Cesar Navarro.
Navarro said Bolivia’s mining and metals ministry analyzed the proposals other Chinese companies sent in order to develop the project, however, they “did not either meet the technical requirements [for the project] nor guaranteed steel production at competitive prices.”
Bolivia is expected to send this Wednesday a direct invitation to Sinosteel, which will include recommendations, so the Chinese company could send a proposal in order to explore the iron ore reserves of the Mutún project.
“We’ll give them 15 business days, so they can present their proposal,” Navarro said. The minister said both the Bolivian government and Sinosteel are expected to define the signature of a contract by the first week of December.
At a meeting with investors in New York in October this year, Navarro said the Mutun iron and steel complex should start-up by 2019.
Sinosteel had initially proposed a $388 million investment for a non-flat finished steel mill, while Henan, another company competing in the public tender, said the development of the project would cost about $442.1 million, including a gas pipeline stretch as well as a steel pipe.