Brazilian state sees plunging ore exports due to low Paraguay River water level

With the low water level of the Paraguay River, currently at 0.91 meters, ore exports such as iron and manganese have been reduced via river transport and are now predominantly occurring by road. According to Semadesc (State Secretariat of Environment, Development, Science, Technology, and Innovation), exports via the river “continue, but at lower levels.”

This situation particularly affects Ladário and Corumbá, where mining companies are based. The department reports that the barges currently in use have reduced capacity compared to those used during the high water period of the river. This year, according to data from the Brazilian Navy, the current 0.92 meters is the highest level of the year, with the lowest levels recorded in January when the riverbed was only 0.31 meters deep.

In addition to the difficulty of river exportation, the situation also impacts the reduction in the collection of the ISS Service Tax, which is municipal. Semadesc explains that “with lower activity, companies pay less tax.”

There is also a decrease in CFEM (Financial Compensation for Mineral Exploration) payments because “without the full capacity to transport the mined ore, mining companies reduce exploratory activity.” The compensation is paid to municipalities where there are companies engaged in mineral exploration.

Source: Campo Grande News

Click here to read the original piece: https://www.campograndenews.com.br/economia/estado-reduz-exportacao-de-minerio-devido-baixo-nivel-do-rio-paraguai

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