Brazil's EBX group and Bolivia's Tumbar group aim to build a US$150mn plant to produce pig iron from the El Mutún iron ore deposit in Bolivia, Bolivian press reported.
EBX, which plans to invest US$250mn in Bolivia, has already bought bidding rules for the El Mutún deposit in Bolivia's Santa Cruz department.
In September Bolivia's government launched the tender to operate the project and will receive bids through December 19.
Bolivian International Pipeline Engineers (Bolinter) is already advancing civil works to install four blast furnaces with pig iron production capacity of 1Mt/y, according to press reports. Works will require US$6.5mn in investments.
Works for the pig iron plant are near the Puerto Suárez duty-free industrial zone in Santa Cruz.
El Mutún is one of the world's largest iron ore deposits, with some 40Bt of reserves over 60 sq km at an average content of 50% iron. The deposit is close to the Bolivia-Brazil border, 41km south of the city of Puerto Suárez.