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Paraguay And Titanium: Failure To Launch? – Evaluation

5 min read

By Wilder Alejandro Sanchez

“Paraguay will develop into the middle of worldwide titanium manufacturing,” was the headline of a November 2010 article within the BBC. Nearly a decade and a half later, titanium manufacturing in Paraguay has but to start. Much more, by the personal admittance of the nation’s authorities, they aren’t certain how a lot titanium there may be within the Alto Paraná division, the place the deposits are positioned. Prospecting continues, however no public plans or timelines can be found relating to when titanium manufacturing will start, if ever.

President-elect Santiago Peña Palacios, who gained the nation’s 30 April presidential elections and can assume energy this upcoming 15 August, has a number of challenges to handle to carry improvement and stability to his land-locked South American nation. Given the worldwide demand for essential minerals like titanium, one of many incoming president’s priorities should be to determine how titanium-rich his nation is and whether or not it’s useful for a mining challenge to maneuver ahead.

Discovering Titanium

In a July 2022 article for the Paraguayan every day ABC, Monica Urbieta, director of mining assets on the Vice Ministry of Mining and Vitality, acknowledged, “we would not have the ultimate numbers but, however we imagine that there’s a very huge deposit of titanium.” Nonetheless, protecting according to Asuncion’s speech for over a decade, Urbieta added, “the idea is that the [mining] challenge places Alto Paraná as one of many greatest deposits of high-grade titanium ore and largest [in size] on the earth.”

Urbieta was referring to titanium prospecting within the Alto Paraná and Canindeyú departments, Jap Paraguay, carried out by the Paraguayan mining firm Metálicos y No Metálicos Paraguay S.R.P., owned by the US-mining firm Uranium Vitality Company. A number of Paraguayan media reviews over time have additionally praised the nation’s titanium deposits and potential.

Uranium Vitality Corp. acquired the Alto Paraná Titanium Mission in Paraguay in 2017. “Leveraging our in-country presence and know-how, we recognized a well timed and strategic alternative to consolidate over 70,000 hectares making up the Alto Paraná titanium challenge and its pilot plant for the advantage of UEC shareholders. Roughly $25 million has been invested on this challenge thus far,” mentioned Amir Adnani, President & CEO on the time.

In accordance with the Uranium Vitality Corp web site, “challenge useful resource estimates place Alto Paraná as one of many highest-grade and largest-known ferro-titanium deposits globally.” The corporate is optimistic, explaining that the positioning has “glorious infrastructure with proximity to main hydroelectric energy supply, [and is] preferrred for intense metallurgical mineral extraction.” The challenge standing is “at superior exploration stage with over $30 million invested thus far.” The corporate estimates the titanium ilmenite deposits within the space at 689 mt. (The corporate can also be current in Paraguay for one more essential mineral, uranium, through the the Coronel Oviedo challenge and the Yuty challenge).

The Way forward for Paraguayan Titanium

When prospecting ends, the challenge’s manufacturing section will start, which entails a brand new spherical of paperwork. “The contract is being analyzed, but it surely has to go to the Treasury [Ministry], and when it’s full, a draft invoice will probably be despatched to the Parliament for a concession invoice to be accredited. [A mining project] can solely happen through a concession invoice per the Paraguayan Structure’s Article 112.” Urbieta mentioned in 2022, including that she doesn’t know if Uranium Vitality Company plans to promote the titanium or will refine it immediately.

A newer, although equally ambiguous, replace concerning the Alto Paraná challenge exists due to an article by Paraguayan every day La Nacion this previous April. The article quotes the nation’s Vice Minister for Mining and Vitality, Carlos Saldívar, who famous, “there’s a firm working within the space. It is extremely necessary right this moment from the commercial, strategic viewpoint, and on the nation degree, it will be essential.” Extra problematic is that, as La Nacion explains, “the vice minister indicated that the corporate that’s at the moment engaged on the exploration of titanium is quantifying the quantity that there could also be, for which they ready with a pilot plant to see the profitability of this mineral, however that there’s nonetheless no official knowledge on the quantity [of titanium] within the deposit.”  The pinnacle of the Vice-Ministry added, “the State doesn’t have any establishment that may perform this work [prospecting for titanium] as a result of till now, no political present has modified the natural constitution of the sector to have the rights to use any mineral,” he mentioned. In different phrases, dependable knowledge continues to be not obtainable, and the federal government doesn’t have the unbiased assets to prospect for titanium by itself.

For this evaluation, I’ve reviewed Paraguayan information websites, authorities websites, and different open-source web sites; I’ve but to search out new information concerning the present standing of this challenge.

Though official knowledge and financial expectations are optimistic, Paraguay is one in every of South America’s poorest nations, although the nation’s economic system is anticipated to develop by 4.5% this 12 months. Mining within the nation isn’t important, although Paraguay has deposits of iron, manganese, and gold, amongst others. If the titanium mining challenge ever turns into a actuality, it will be the crown jewel of the nation’s mining trade.


I’ve written a number of commentaries for Geopolitical Monitor about essential minerals manufacturing throughout Latin America and the Caribbean, together with lithium manufacturing in Argentina, Bolivia,and Chile; how Peru desires to affix the area’s lithium-producing “Lithium Triangle;” bauxite manufacturing in Jamaica; and even  how coltan mining funds Colombian prison networks. The state of affairs in Paraguay stands out in comparison with the aforementioned analysis reviews as a result of titanium mining stays hypothetical within the landlocked state.

It’s common to learn headlines about how “nation X” has probably the most important deposits of “essential mineral or uncommon earth Y,” which may very well be a sport changer for the worldwide economic system and the nation’s personal economic system. Hype for Paraguay’s titanium reserves commenced over a decade in the past and continues to make occasional media headlines; nevertheless, the truth that the Alto Paraná mining challenge has not moved ahead is disheartening. There are many drawbacks and legitimate criticisms about mining usually, comparable to air pollution, deforestation, and water waste (e.g., relating to lithium mining); equally, a authorities’s obvious lack of expertise a few doubtlessly very worthwhile commodity is equally problematic. Titanium mining in Paraguay may very well be both an excellent or dangerous concept, however not sufficient data is on the market for the Paraguayan inhabitants to debate and determine.

In mid-August, Paraguay begins a brand new chapter when President-elect Santiago Peña Palacios takes workplace, however will Paraguay’s titanium reserves, and the nation’s mining trade usually, lastly enter a brand new chapter as properly throughout the brand new administration?

Concerning the writer: Wilder Alejandro Sánchez is president of Second Ground Methods, a consulting agency in Washington, D.C. He’s an analyst that displays protection & safety, geopolitical, and commerce points throughout the Western Hemisphere, Jap Europe, and Central Asia.

Supply: The views expressed on this article belong to the authors alone and don’t essentially replicate these of

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