Bnamericas reported that Paraguay's mining sector has high expectations for the activity's development due to the changes that were made to the mining law in 2011.

Lawyer Vanesa Luraschi said that "It's important to mention that the modification to the mining law was necessary because it will attract private investment without which it would be impossible to develop mining in Paraguay."

Mr Luraschi said that the changes to the law represent an important step not just legally but in the mind-set of authorities who have realized that mining involves significant high risk private investment, despite the fact that there are still legal flaws that still have to be analyzed.

He said that the law, which was approved with modifications on July 14th 2011 also extends the periods for prospecting and exploration along with the number of hectares each company can hold.

Previously, given the strict limitations on the number of hectares they could have for prospecting and exploration, investors had to create multiple companies or corporations to gain access to more land. The mining canon payment and the requirements for requesting a mining area were also drastically reduced.

Mr Luraschi said that "We're now in a potentially viable position in terms of legislation for mining investment considering that Paraguay is not a mining country like others in the region."

The law was approved by congress a year ago but the government challenged parts of the reform bill as it had defects in its phrasing and legal inconsistencies. As a result, it was returned to congress to review these objections.

(Sourced fromwww.bnamericas.com)