Bolivian steelmaker Empresa Siderúrgica del Mutún (ESM) plans to expand its iron ore production for exports to at least 100,000mt per month after it signed a new power supply deal with the National Electricity Company (ENDE).
Under this deal signed on Aug 30, ENDE will supply electricity to ESM’s steel mill and industrial facility in Puerto Suárez, Santa Cruz Department enabling the company to eventually ramp up its production to 200,000mt per month, the company indicated.
The agreement, which was sponsored by Minister of Mining and Metallurgy, Ramiro Villavicencio Niño de Guzmán will be in force for two years and is subject to extension, according to media reports. This deal comes within two months of the government resuming construction of the Mutún steel plant to improve domestic steelmaking in the region.
According to ESM, the Mutún region is rich in mineral deposits, with an estimated 40bn mt of iron ore and 10bn mt of manganese resources.