Bolivian state-owned Empresa Siderurgica del Mutun (ESM) has signed a supervision contract with China’s Chongqing CISDI Engineering Consulting Co. LTD to develop the country’s much anticipated El Mutun iron and steel complex, ESM said this week.
Under the terms of the deal, Chongqing will supervise and certificate the design, construction and start-up project of the proposed El Mutun iron and steel complex.
The iron and steel complex will be located in the Bolivian city of Puerto Suarez.
The Bolivian government said an existing credit line granted by Eximbank has currently reached its second phase. A third stage is expected to be completed soon. As the third step is completed, ESM can advance the supervision contract to build the project.
China’s Sinosteel will be responsible for executing the project, as previously reported by SteelOrbis.
The Bolivian government has inked in March last year a “final” contract with China’s Sinosteel to develop Bolivia’s Mutun iron and steel complex, after months of postponements.
According to the Bolivian government, the $422.6 million project will be financed by both the Chinese and the Bolivian governments.
About 85 percent of the project will be financed by Eximbank, while the other 15 percent will be financed by Bolivia. Constructions were first expected to begin in 2017 and should last 30 months. It will produce 250,000 mt/year of sponge iron.