Paraguay Overhauls Mining Code for Minerals Rush

Paraguay built its economy on what grows above ground — soybeans, beef, hydroelectric power. Now the government of Santiago Peña wants to find out what lies beneath it. Vice Minister of Mines and Energy Mauricio Bejarano announced that the executive branch is preparing a new national mining policy and a comprehensive overhaul of the Mining Code, a law that has not been updated since 2007.

The stakes are considerable. Preliminary surveys indicate potential deposits of lithium in the Chaco’s brine aquifers, rare earths in the carbonatite complexes of Amambay, uranium near Yuty with an estimated 4,800 tonnes, and massive titanium deposits in Alto Paraná that could require initial investments exceeding $1.5 billion. Bejarano cautioned, however, that moving from geological hints to certified reserves takes 10 to 15 years and heavy capital.

That capital will not arrive under current rules, according to the Paraguayan Mining Chamber (Capami). Its president, Víctor Manuel Fernández Crosa, has called existing regulations a roadblock, arguing the country needs a framework comparable to Peru’s or Chile’s to attract the kind of high-risk, long-horizon investment that mining demands. The reform team benchmarked its draft against Canadian, Chilean and Peruvian legislation.

Geopolitics Push Paraguay Mining Fast Track

Geopolitics are accelerating the timeline. On February 4, Paraguay signed a bilateral critical minerals MOU with the United States at Washington’s inaugural Critical Minerals Ministerial, hosted by Secretary of State Marco Rubio with 54 countries attending. The agreement places Asunción inside the Trump administration’s supply-chain diversification network aimed at reducing reliance on Chinese-dominated mineral processing.

Foreign interest is already materializing. Canadian and American companies are prospecting lithium in the Chaco and uranium in Caazapá, while a delegation from Uzbekistan visited after Peña’s December state visit. India, Finland and the UAE have also opened conversations. A McKinsey study commissioned by the industry ministry identified mining as a key lever for doubling Paraguay’s GDP within a decade.

The question is speed. Brazil has already secured $465 million from Washington’s development finance agency for its Serra Verde rare earths project. Argentina is luring capital through its RIGI incentive regime. Paraguay’s subsoil may hold the same promise, but until the new code clears Congress, that promise stays underground.

Related coverage: Brazil’s Morning Call | USA & Canada Intelligence Brief for Monday, February 16, 202