Mineral industry of Paraguay consists of the manufacturing of steel, cement, iron and petroleum products. There is absence of oil or natural gas reserves.

To fulfill the needs of petroleum and crude oil, Paraguay is completed dependent upon daily imported barrels. The mining sector shares only 0.1% of country’s GDP.

The mineral industry of the country is mainly composed of firms that are owned by Paraguayan Government. The production of cement, natural gas, iron ore, steel and pig iron take place in Paraguay. Mostly following commodities are produced in Paraguay:

Iron and Steel

In 2006, the production of crude steel in Paraguay was 118,000 metric tons, which was an increase of 16.8% as compared to the crude steel production in 2005, which was 101,000 metric tons. The production of pig iron in Paraguay was 126,000 metric tons in 2006, which was an increase of 1.6% as compared to the pig iron production in 2005, which was 124,000 metric tons.

Natural Gases

Paraguay does not have natural gas and oil reserves. However, in 2006, the government of Paraguay and Bolivia approved a plan for constructing a pipeline from South of Bolivia to the capital of the Paraguay. Paraguay also attracted some interest from the international natural gas companies.

Petroleum

Petroleos Paraguayos, a Paraguayan national oil company, has a monopoly on the sales and imports of petroleum products including crude oil, in Paraguay. Venezuela and Paraguay discussed about building an oil refinery in Paraguay which could process the heavy crude of Venezuela. The government of Paraguay announced in February 2006, that CdS discovered crude oil in the western Chaco region.

Cement

The only cement producer in Paraguay in 2006, was Industria nacional del Cemento InC. In 2006, the cement production of InC, was the same as that in year 2005, i.e. 550,000 t. In June 2006, 3 companies Concret-Mix Co. of Paraguay, Votorantim Cimentos of Brazil, and Camargo Correa Cimentos S.a., expressed interest in building a cement factory in the city of Paraguay known as Mariano roque alonso.

Contrasting to other South American countries, Paraguay has few oil and natural gas reserves as well as mineral resources. In recent years, Paraguay is meeting its needs of minerals and natural gas by importing from neighboring countries.