Shandong Luneng makes bold El Mutún port proposal

China’s Shandong Luneng Group will build a $2 billion port at Tacna in southern Peru to export iron ore across the Pacific Ocean if it wins the auction for the El Mutún project in Bolivia’s eastern Santa Cruz department

A port at Tacna would mean a journey of 16,000km that would accommodate large vessels, although this would necessitate transporting iron ore over the Andes.

Shandong must first beat out at least four competitors that have bought bidding rules for the project: Brazil’s EBX Siderurgica, Argentinian consortium Techint-Siderar, Indian steel company Jindal Steel and Mittal Steel.

Shandong plans to build a railroad to ship the ore with a mega port at its terminus. This could be attractive to a Bolivian government that will...

Published

October 14, 2005

09:09 GMT

Santiago