Paraguayan Miners Urge Government to Reconsider Electricity Tariff Hike

Paraguayan miners have urged the government to reconsider the upcoming increase in electricity tariffs for their industry, as reported by Cointelegraph.

In July, the national operator ANDE warned legal industry participants about the planned price hike, set to take effect on August 1.

Jimmy Kim, a representative of the Paraguayan Chamber of Digital Technology, expressed disappointment with the government’s decision in comments to the publication. He believes this will harm the country’s economy.

“The energy sector already increased fees by 54% in 2022 when miners began signing new five-year agreements with ANDE,” he noted.

The chamber believes that the new 16% tariff adjustment will render the sector unsustainable. According to Kim, up to 70% of legally operating companies might exit the business, leading to job losses and affecting the investment climate.

“We urge ANDE to urgently reconsider the planned increase to protect a vital source of income for Paraguay’s economy,” he emphasized.

Kim estimates that more than 50 companies are operating legally in Paraguay, having invested “over $700 million” into the economy.

Industry insiders previously reported that local players are considering alternatives in neighboring Argentina and Brazil.

Back in April, Paraguayan lawmakers proposed a temporary ban on mining in the country. The initiative did not receive support, but Hashlabs Mining estimated such a move could result in a loss of over $200 million in annual investments from industry players.