Paraguayan miners have called on the government to reconsider the upcoming increase in energy tariffs for them. He writes about it Cointelegraph.
In July, the national operator ANDE warned legal industry participants about the planned price increase. The changes will take effect on August 1.
Jimmy Kim, a representative of the Paraguayan Chamber of Digital Technologies, expressed disappointment with the decision of the authorities in a comment to the publication. In his opinion, this will damage the country's economy.
"Energy companies have already raised fees by 54% in 2022, when miners began signing new five—year agreements with ANDE," he noted.
The chamber believes that a new tariff adjustment of 16% will make the sector unstable. According to Kim, up to 70% of legally operating companies may go out of business, which will lead to job losses and affect the investment climate.
"We urge ANDE to urgently review the planned increase in order to protect a vital source of income for the Paraguayan economy," he stressed.
According to Kim's calculations, there are more than 50 companies legally operating in Paraguay, which have invested "more than $700 million" in the economy.
Industry insiders have previously reported that local industry participants are considering alternatives in neighboring Argentina and Brazil.
Recall that in April, the legislators of Paraguay proposed to temporarily ban mining in the country. The initiative did not receive support, but Hashlabs Mining managed to assess such a step in the loss of more than $200 million in annual investments from industry players.