Indian steel production company Jindal Steel and Bolivia's state-run Empresa Siderurgica Mutun have signed an agreement to exploit Bolivia's rich iron ore deposits.
The Mt. El Muntun ore field is 27km from Puerto Suarez, near the border with Brazil.
The site is estimated to hold 40 billion tons of iron and 10 billion tons of magnesium.
The joint project should create 21,000 jobs and US$200 million in yearly tax revenues.
In Bolivia's biggest ever project, the agreement will call for a $1.5-billion investment by Jindal in the first five years, followed by other infusions of capital until the ore is exhausted.