BNamericas reported that Bolivian state steel company ESM is considering focusing its efforts on the production of pig iron for supplying private companies that could develop steel projects at the El Mutún iron ore deposit in Santa Cruz department.

Mr José Padilla advisor to the Pro Santa Cruz civic committee told BNamericas that "ESM's plan is to work in pig iron and allow private companies to work in other areas, i.e. steelworks. ESM would provide the raw material and private companies will cover the rest."

Recently, Mr Padilla said ESM is considering direct contracting with private companies to build several plants for the industrialization of El Mutún's iron ore, and constructing plants for the concentration of palletizing, sponge and pig iron.

According to the advisor, there are close to seven companies that have expressed interest in participating.

Pig iron is the initial process for steel production and is obtained from a combination of iron ore, coke and lime.

ESM, which shared a JV for development of 50% of the El Mutún deposit iron ore in Santa Cruz with Jindal Steel & Power and state miner (Comibol), is now leading the development of the project after Jindal's withdrawal.

Source - Business News Americas

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