Duarte govt. pledges pro-mining stance

Paraguay's new President Nicanor Duarte has set as a priority the development of the country's mining sector, and to this end his government has established a policy aimed at cutting costs and increasing returns, said Hector Ruiz, the new mines and energy deputy minister. The new government's mining development policy will be more aggressive, "as we understand that in our country [mining] is somewhat incipient and disorganized," the official told BNamericas. To achieve this Ruiz said his office is already working on reorganizing existing information in the mining and hydrocarbons sectors. "We think we are going to get good results. From the technical information we have, there are conditions for the finding of both mineral and hydrocarbon deposits in certain places," he said. Duarte was sworn in on August 15 for a five-year term, taking over from Luis Gonzalez Machi. According to the Duarte government's program, the new policies will reflect the new mining and hydrocarbons bills, which are currently in the process of being promulgated and regulated, respectively. "The new mining law is being ratified by congress and is expected to be ready in three months, and experts are being sought to draw up the regulations for the hydrocarbons law, something investors require," Ruiz said. Toronto-based Rex Diamond Mining (TSX: RXD) is working on diamond exploration in Paraguay and fellow Canadian Morrison Mining has detected quantities of nickel and platinum in the country. Also, local player Minas Paraguay S.A. has several areas being prospected for gold in mother lodes. Other smaller firms are exploring for gold and diamonds, while artisan miners also operate in Paraguay.