Sinosteel Corporation of China won the bid for the mining rights of the Empresa Siderúrgica del Mutún (ESM) in Santa Cruz, Bolivia, on Jan 19.

The ESM is the world's largest iron-ore resource situated 2,000 kilometers (1,243 miles) southeast of La Paz, capital of Bolivia, with gross reserves at 40 billion tons.

Winning six out of seven votes in the last round of bidding, Sinosteel beat its rival, another Chinese enterprise Henan Complant Mechanical & Electrical Equipment Group Co. Ltd (HCME), with overwhelming odds.

According to the steel project carried out by ESM, ore-dressing plants, granulation workshops and plants for direct reduction will be set up in Bolivia, stated Saisaer Nawaluo, Mining Minister of Bolivia.

He added that a steel mill with continuous casting technology will also be established to satisfy 60 percent of domestic steel demand.

Sinosteel will invest $450 million in the project and initiate the construction in 100 days as prescribed under the supervision of another international corporation.

In 2007, the government of Bolivia collaborated with Jindal South West Group of India to develop ESM but failed five years later. Many corporations from Russia, Australia, Venezuela and China thereafter expressed their interest in the project.

"We have to choose a corporation rich in experience and funds as our powerful support. Sinosteel is our best choice", said Nawaluo in a news conference.