Mutún

El Mutún is one of the layers of Fer and most important Manganèse in the world. Located in the province of Germán Busch of the Department of Santa Cruz in Bolivia, the site consists of hills whose altitude varies between 200 and 800 meters. It is very close to the site Brésil IEN of Urucum. It has a surface of 65 km ² of ore surface. The estimated reserve is of 40 billion tons of Fer mainly in the form of hematite, but also of magnetite, manganese siderite and ore. The layer contains moreover not less than 10 billion tons of manganese, ore him also highly exploitable. Let us note that to the current rhythm of iron ore consumption in the world, the layer of El Mutún could provide 10% of the world ore during at least three centuries.

Agreement finally reached

June 2nd, 2006, the Bolivian government announced to have granted to the Indian iron and steel company Jindall Steel and Power the exploitation of the layer, in exchange of an investment of approximately 2,3 billion dollars in the construction of a steelworks. The agreement envisages the exploitation of the layer for one 40 years period.

In exchange of the annual extraction of four million tons of iron and the annual production of 1,5 million tons of reduced iron (iron sponges ready to be molten in the electric furnaces) and of 1,4 million tons of laminated steel, the Bolivian state will annually perceive 50 million American dollars, 30 of them for the exploitation of the layer and the remainder for the participation which the state will have in the company.

The first 20 years, Jindall Steel will exploit only the layer, and the 20 following years in partnership with the State, which will be minority associate.

Advantages estimated for Bolivia

It does not seem that this agreement provides large incomes to the Bolivian government, but it has the great merit to provide work to 10 000 people. One estimates moreover at more or less 30 000 the number of indirect jobs which will be created by this agreement. Moreover, for the first time in the history of Bolivia, an iron and steel industry will be established in the country. Instead of exporting rough ore, as it was the case with small scales, in fact end products and semi-finished will be exported, the latter with good plus strong added value. So the agreement constitutes a great step in the industrialization of the country.

It should be noted that the new one was very well accommodated as well by the local contractors of the Département of Santa Cruz as by the population of Puerto Suárez, the city most concerned with this project.

Ecological aspects

Finally the fuel which will be used will be the Bolivian Natural gas and not wood, as a former agreement become null and void had envisaged it with a Brazilian company. The very serious threat of deforestation accelerated of the area is thus temporarily isolated. A gas pipeline will be built to bring the gas on the site, this gas pipeline which can be used later on with other aims, for the greatest profit of the country.

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