A China-funded steel plant in Bolivia, long in planning, is set to commence production this month, covering half of Bolivia’s steel needs.

The $546m (3.97bn yuan) Mutun plant, funded by the Export-Import Bank of China, will be operated by Sinosteel Engineering and Technology for its first year, reported Reuters.

The plant, set to be inaugurated on 24 February near the Brazilian border, is expected to produce 200,000 tonnes (t) of steel annually, including rebar and wire mesh, with a value of $260m.

The Mutun plant will process 66,000t of raw materials per month, sourced from the Cerro Mutun deposit, which is estimated to contain one of the world’s largest reserves at 40 billion tonnes.

“We are entering an era of industrialisation,” said Alejandro Santos Laura, Mining Minister, during a press conference.

The project faced more than five decades of delays, including disputes with the initially contracted builder, Jindal Steel & Power from India.

President Luis Arce’s government aims to revive the economy as declining gas exports affect foreign reserves and local currency.

Officials are considering a second plant once domestic needs are met, although no timeline is provided, the report said.

“When we pass 100%… we are going to build another plant, much better than the current one. We will have no choice but to export the surplus abroad,” Santos Laura stated.

The plant is expected to create 700 jobs during its initial operations, and up to 1,000 during the life of the plant.

Bolivia is also advancing its efforts to exploit its vast lithium deposits, preparing agreements with investors for processing plants.

Despite low lithium prices and opposition from lawmakers and citizens, Bolivia is progressing with its plans.