PARAGUAY

PARAGUAY

Govt approves mining law - Paraguay

BNAmericas

3rd May 2007

The government of Paraguay has signed a new mining law that will provide more security for investors, Paraguay's deputy mining minister Héctor Ruiz Días told BNamericas.

"This generates tremendous expectations for us. We believe it is a hugely important tool for creating incentives and a business scene, which is important for private investors to feel secure," he said.

Ruiz said there have already been meetings with companies interested in the country's mining sector. "They have great expectations for the beginning of a broad exploration process to identify deposits with profit potential," he said.

According to the deputy minister, two large Canadian companies, the names of which he withheld, are already moving into the country.

Paraguay's previous mining legislation dated to 1914. With the new law, the government hopes the Paraguayan mining sector can step onto the international mining stage, the executive said.

Companies operating in Paraguay include Canadians Rex Diamond Mining (Pink Sheets: RXDMF), which works in diamond exploration, and Morrison Mining, which has discovered nickel and platinum.

Local company Minas Paraguay also prospects for gold veins in several areas of the country, and other midsized companies are exploring for gold and diamonds.

By Harvey Beltrán
Business News Americas