Bolivian president Evo Morales signed this week a bill approving a foreign loan to support the Mutun iron and steel complex.
China’s Eximbank will provide a financing of $396.1 million, while the Bolivian government will commit to a $69.9 million investment in the project.
The project was first estimated at a cost of $422 million, but with Eximbank’s approved financing and the Bolivian government additional investment it came to $466 million.
The iron ore concentration plant will have a 650,000 mt/year capacity, out of which it will produce 400,000 mt/year of pellets and 250,000 mt/year of sponge iron.
Construction was first expected to begin in 2017 and should last 30 months, but works have delayed and may start in June this year.