The Mutún steel project has been one of the flags of the Movement for Socialism (MAS) since it came to power in 2006. For almost two decades, the Government has repeatedly announced the start of iron ore industrialization in Bolivia, presenting it as an essential step toward productive sovereignty. However, the history of Mutún is marked by failures, unfulfilled promises, and questionable decisions that cast doubt on the project's real viability.
In 2007, the government of former dictator Evo Morales signed a contract with the Indian company Jindal Steel & Power for the exploitation of the deposit. However, in 2012, the company withdrew, citing breaches in gas supply by the State. After this failure, another company was sought, and in 2016, the contract was awarded to the Chinese company Sinosteel. The construction of the steel complex was supposed to be completed in 2021, but constant delays have postponed its operation until 2025.
According to the regime, the Mutún steel complex is 85% financed by the Export-Import Bank of China (Eximbank), with an investment of $546 million. The Bolivian State contributes the remaining 15%. The plant is expected to produce 200,000 tons of steel annually, which would cover half of the internal demand and generate revenues of approximately $260 million annually.
However, economic analysts have warned that if production costs are not competitive, the government might be forced to subsidize the steel to keep the project afloat. In fact, there is a fear that Mutún will end up becoming another "white elephant," an expensive project that fails to sustain itself and becomes a burden for the State.
The project raises questions
El Mutún | La Derecha Diario
The Mutún industrial complex is technologically dependent on foreign companies. Its construction and commissioning are in the hands of Sinosteel, and technology from Mexico, the United States, Italy, Spain, Germany, France, and the United Arab Emirates will be used. Additionally, during its first year of operation, the Chinese company will be responsible for managing the complex, which calls into question the country's ability to manage its steel industry autonomously in the future.
Meanwhile, it has been reported that to start the complex's operations, Bolivia has negotiated the import of pig iron from Brazil, which exposes the project's inability to fully operate with its own raw material in its initial phase. This situation raises doubts about the plant's real self-sufficiency and its impact on the Bolivian economy.
Mutún has been announced and relaunched multiple times by MAS, but so far it has not been effectively realized. With a history of failures and delays, the fear that this megaproject will become a white elephant is not unfounded. The lack of technological autonomy, dependence on Chinese financing, and uncertainty about the competitiveness of the steel produced at Mutún make many Bolivians question whether this steel plant will truly be a solution for the national economy or if, as so many times before, it will end up being an unfulfilled promise of the government in power.
La Derecha Diario 
