Welcome to Paraguay Natural Resources.
Paraguay is a landlocked country in South America, bordered by Argentina, Brazil and Bolivia. It is home to a wealth of both national and natural resources and hosts a population of around 7,300,000 (2022) and covers an area of 406.753 km².
Paraguay is well endowed with minerals, including large reserves of iron ore and coal, lead, gypsum, and uranium. Read on to learn all about Paraguay Natural Resources!
Additionally, Paraguay has large reserves of precious and semi-precious stones, such as diamonds, quartz, and amethyst.
The country also has considerable surface and underground water resources, and its soils are rich in various minerals.
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Natural Resources of Paraguay
The economy of Paraguay has experienced difficulties due to inadequate infrastructure and political instability. Paraguay has an economic freedom score of 62.9, making it the 73rd freest economy in the 2022 Index. It is ranked 17th in the Americas region, and its overall score is above the regional and world averages.
Paraguay’s economy slowed in 2017 and 2018 and contracted in 2019 and 2020, before resuming growth in 2021. Despite a overall gain in economic freedom since 2017, Paraguay remains in the lower ranks of the “Moderately Free” countries. Its burden of taxation is light, but its scores for rule of law are far below average.
The impact of COVID-19 was significant in Paraguay, with around 16,500 deaths attributed to the pandemic, and the economy shrinking by 0.9 percent in 2020. The government’s response to the crisis was ranked 122nd among the countries included in this Index in terms of its stringency.
Mining
Paraguay has limited proven mineral resources, with most deposits located east of the Paraguay River. The land has a variety of minerals, including iron ore, limestone and clay. There are also deposits of gypsum, marble, and granite. The country has a small mining industry, which is focused mainly on the extraction of these minerals.
The mineral industry of Paraguay is mainly controlled by state-owned companies. Further natural resources in the country include timber, manganese, limestone, uranium, bauxite, copper, salt, peat, talc, mica, feldspar, azurite and malachite.
Major mineral deposits are located along the Paraguay River, with additional resources of semiprecious stones, dolomite, kaolin and magnesium also available.
Cement is a major mineral commodity in Paraguay, with Industria Nacional del Cemento (INC) producing several thousand bags of cement a day. Uranium deposits are found in the Yuty zone located in Caazapa at San Antonio.
In 2010, a large deposit of ilmenite (a titanium ore) was discovered in Paraguay, estimated to contain 20 billion tons, potentially making Paraguay the world’s largest titanium producer.
Manganese can be found near Emboscada, while malachite, azurite, feldspar and mica are found near Caapucú, Encarnación and San Miguel. Ochre and talc can be found in the Cordillera region, gypsum and limestone near the Paraguay River, and peat near Pilar.
Reports of copper, bauxite, iron and uranium ores have been made, with concessions granted in the early 2000s for gold and diamond prospecting. Extensive drilling in the Paraguayan Chaco has failed to uncover any commercially viable hydrocarbons. Despite the varied mineral resources, the mining and quarrying sector remains under-developed, due to the limited quantities of proven reserves. Currently, quarrying is limited to limestone, gypsum and clays, which are mostly used for construction.
Fuel Resources & Energy
Paraguay is largely reliant on its hydroelectric potential as its most significant natural resource. With hydroelectric power accounting for more than 90% of its electricity production. Paraguay has a small domestic oil industry, with most of its oil being imported. Petropar, a state-owned energy company, controls all petroleum and crude oil imports in the country.
Paraguay relies on imports for its natural gas requirements as domestic production capacity is lacking. Venezuela has shown interest in constructing a heavy crude oil refinery in Paraguay, capable of producing 20,000 barrels per day (bbl/d) of gas oil.
Before the Acaray hydroelectric plant was commissioned in 1968, most of Paraguay’s electricity was generated in thermoelectric plants in Asunción. These were fueled by wood and oil. After the power plant’s capacity was expanded in 1970, Paraguay’s total energy production increased fifteenfold over the next two decades. Almost all of this energy was derived from hydroelectric sources. The distribution of electricity is overseen by the National Power Company, which was created in 1949.
Forest
In terms of its land resources, Paraguay is mostly made up of savannah and grasslands. But there are also significant areas of forest, including the Mbaracayu Forest and the Atlantic Forest. There are also numerous protected areas for conservation, such as the Ybycuí National Park and the San Rafael National Park.
Landsmark
The country is home to a number of landmarks and attractions, such as the Itaipu Dam, the largest hydroelectric power plant in the world, or the Jesuit Missions of La Santísima Trinidad de Paraná and Jesús de Tavarangue, both UNESCO World Heritage Sites. Other notable attractions include the Salto de Monday waterfalls, the Cerro Pero lookout point, and the Jesuit Ruins of Trinidad.
Some of the notable landmarks in Paraguay include the Paraguayan Pantanal, the Itaipu Dam, and the Jesuit Missions of La Santísima Trinidad de Paraná and Jesús de Tavarangue.
Agricultural
Paraguay is an important producer of agricultural products and is renowned for its cattle and livestock and its exports of soybeans, cotton, sugarcane, timber, and oilseeds. The country is also a major exporter of oil and gas. It has been making strides in developing renewable sources of energy, such as hydroelectricity and solar power.
Paraguay is a predominantly agricultural country, with a large portion of its land being used for farming and ranching.
The country has a variety of landscapes, including the Gran Chaco, a vast plain in the western part of the country that is home to a diverse array of plant and animal life. The eastern region of Paraguay is home to the Paraguayan Pantanal. It is a large wetland area home to various wildlife, including caiman, jaguars, and anacondas.
Conclusion – Paraguay Natural Resources
Paraguay has limited proven mineral resources, with most deposits located east of the Paraguay River. The country also has a small mining industry, with cement, uranium and ilmenite (a titanium ore) being mined. Other natural resources include timber, manganese, limestone, bauxite, copper, salt, peat, talc, mica, feldspar, azurite and malachite.
Paraguay is largely reliant on hydroelectric power, which accounts for more than 90% of its electricity production. The country has a small domestic oil industry, but is reliant on imports for its natural gas requirements.
Paraguay is an important producer of agricultural products, including soybeans, cotton, sugarcane, timber, and oilseeds. It is also home to a variety of landmarks, such as the Itaipu Dam, the largest hydroelectric power plant in the world, and the Jesuit Missions of La Santísima Trinidad de Paraná and Jesús de Tavarangue, which are UNESCO World Heritage Sites.
Paraguay strives to attract foreign investment with laws that treat foreign and domestic investors equally and encourage investment in mining activities and mineral exports. This, combined with successful exploration results in the Chaco region and potential investment from China, suggests that Paraguay could become one of the major global mineral producers in the near future.
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