Bolivian state-owned company Empresa Siderurgica del Mutun (ESM) has signed an agreement with state-run electricity company, ENDE, to get electricity for its iron ore and steelmaking complex, the nation’s ministry of mining said.
ENDE will provide electricity to the El Mutun iron ore and steelmaking complex. The agreement is part of a government’s effort to boost iron ore exports.
“With this electricity supply (agreement) the output of iron ore for exports will increase,” said the nation’s minister of mining, Ramiro Guzman.
“We talked with our manager and technicians to increase (iron ore output) to 100,000 mt/month and then to 200,000 mt/month,” the minister said, without providing a specific timeline.
The electricity supply deal should last for two years, and could then be further extended for an undisclosed period of time. Earlier this year, the Bolivian government said construction works at the ESM complex could be completed by late 2022. Construction works were first expected to begin in 2017 but were then postponed for June 2018. Sinosteel commenced preliminary works in the area in July 2018.