“Yesterday I visited the world’s largest hydroelectric power plant. The name of this plant is Itaipu. It sits on the border between Brazil and Paraguay, on one of the largest rivers in Latin America, the Rio Parana.

A few months ago, I visited the largest coal-fired power plant in America, Plant Scherer. When Scherer operates at full capacity, it produces 3.5 gigawatts of power. A nuclear reactor produces around one gigawatt of power.

Itaipu produces 14 gigawatts of power. In other words, it’s four times the size of America’s largest coal power plant… and 14 times the size of most nukes. Itaipu provides 93% of Paraguay’s power and 25% of Brazil’s power.

I can’t explain in words what a beast this dam is. It stretches four miles across and 65 stories high. The iron and steel used to build it would give you 380 Eiffel Towers. It’s one of the seven modern wonders of the world, alongside the Panama Canal and the Golden Gate Bridge.

According to their joint agreement, Paraguay gets 50% of the electricity from the dam. Brazil gets 50%. But Paraguay is a small country. It has a population of 6 million people… versus 200 million in Brazil. So Paraguay only keeps 5% of Itaipu’s power and sells the rest back to Brazil.

This makes Paraguay the largest exporter of hydroelectric power in the world.

Here’s the thing: Paraguay sells its electricity to Brazil at $3 per megawatt-hour. Right now, Brazil can sell the same unit of electricity to its private utilities at $150 per megawatt-hour. There is an electricity crisis in Latin America right now, especially in Chile, and electricity prices are very high. It’s immediately obvious Brazil is not paying Paraguay the right price for its power. And Paraguay is losing billions of dollars.Corrupt politicians set this low price in 1973… under a 50-year contract. The Brazilians bribed the Paraguayan government to sell them power at a rate that’s far too low. Now, there are calls to change this rate, but who knows if that’ll happen…

The thing is, Paraguay doesn’t have to sell its power to Brazil. It could consume the power itself. I think it would be a great business to set up an aluminum or zinc smelter here. These businesses are electricity-intensive. The problem is, Paraguay is a poor country and has absolutely no industry. It’s all agriculture here.

According to the people at Itaipu, the energy the dam creates every day is the equivalent to 433,000 barrels of oil. That’s about half of what Canada’s Athabasca oil sands produce each day. Except it’s renewable, it’s clean, and it takes no energy to produce.

This cheap electricity is one of the reasons I like Paraguay as an investment. But it’s hard to get your money into the country…

Paraguay has no stock market… only a small bond market. So to invest in Paraguay, you’ll have to go there yourself and buy assets from the locals. That’s a good thing. It means everything is cheap.

In Paraguay, for example, you can buy companies for book value… that pay 45% dividends, according to one broker I met. You can buy real estate with 10% rental yields. And cattle farms with 18.5% cash yields.

More to come from Paraguay in my next column…

Good investing,

Tom

P.S. The Three Gorges Dam in China will be the largest hydroelectric dam in the world by volume. It will operate at full capacity by 2011. China hopes it’ll produce 18 gigawatts. That’s bigger than Itaipu.

Our tour guide wasn’t convinced Three Gorges would be able to produce that much power. “The Yangtze isn’t as powerful as the Parana,” he said. “We’ll see…”

P.P.S. There is talk of a hydro plant twice the size of Three Gorges in Africa, on the Congo River. But it’ll never happen. For a start, only 10% of Africans have access to the grid… What will they do with all that power? And secondly, it will require cooperation from seven different central African countries… and hundreds of billions of dollars in loans.

Originally sourced here

Dr. Jeffrey W. Hedenquist, Ph.D., President of Hedenquist Consulting, Inc., provided advice on the exploration model, the nature of the epithermal system and the ongoing exploration and proposed drilling program aimed at a resource definition. Dr. Barry W. Smee, Ph.D., P.Geo., of Smee & Associates Consulting Ltd., audited the Paso Yobai preparation laboratory, reviewed the company quality control procedures and examined the soil geochemical data generated to date.

Both independent complete reports can be reviewed on www.latinamericanminerals.com under the Technical Reports folder.

“We are extremely pleased to have internationally recognized and respected experts visit Paso Yobai to provide guidance on the mineralization, deposit model, quality control procedures and sampling protocols. Their insights provided the basis for an expanded exploration plan, including detailed resource definition diamond drilling and metallurgical testing to supplement the ongoing bulk sampling program,” commented Dr. Waldo Perez, Senior VP Exploration of Latin American Minerals Inc.

The drilling will be carried out on the Discovery Zone, a 2km portion of the 7km Paso Yobai gold anomaly, on sections established at 25m intervals. Prior drill results from this area include DDH-LAT-11 reporting 26.64gpt Au over 6.5m and DDH-LAT-6 reporting 15.3gpt Au over 6.5m. This program is expected to commence in September.

Hedenquist Consulting Inc. provides consulting to major international mining companies on exploration for and assessment of hydrothermal ore deposits (Au, Cu) and geothermal energy systems. Dr. Jeffrey Hedenquist has over 24 years of experience in over 30 countries, and is an advisor to the U.S. Geological Survey and to the governments of New Zealand, Japan and Sweden. Additionally, Dr. Hedenquist has published extensively and holds adjunct professorships with Colorado School of Mines, USA, and University of Ottawa, Canada.

Smee & Associates Consulting Ltd. provides geochemical and geological consulting to major international mining companies encompassing field techniques, sampling programs, training, analytical methods, statistical manipulations, data presentation and interpretation. Specialization includes methods suitable for detecting blind deposits, geochemical data imaging, data base and analytical quality assurance and control programs, including the manufacture of standards, and laboratory audits. Dr. Barry Smee has over 35 years of international experience with mineral deposit types which include porphyry copper, volcanogenic massive sulphide, stratabound massive sulphide, skarn precious and base metal, iron formation gold, vein and shear gold, epithermal gold, and unconformity-associated uranium. Dr. Smee’s work has been published extensively.

Latin American Minerals is a mineral exploration company focused on the acquisition and development of mineral projects in under-explored but highly prospective countries of Latin America.

This news release contains forward-looking statements, which can be identified by the use of statements that include words such as “could”, “potential”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “likely”, “will” or other similar words or phrases. These forward-looking statements, including statements regarding the Corporation’s beliefs in potential mineralization, are based on current expectations, assumptions and projections about future events and entail various risks and uncertainties that are beyond the Corporation’s ability to control or predict. Actual results may materially differ from expectations as more information regarding a property is gathered or if the Corporation’s estimates or assumptions prove inaccurate. Factors that may materially affect actual results include, but are not limited to, political, business and economic conditions in jurisdictions where the Corporation conducts business, and risks associated with mineral exploration and production. The Corporation does not intend, and does not assume any obligations, to update forward looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities law. Readers should not place undue reliance on forward-looking statements.

The TSXV has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.

This makes Abbeyfield the holder of 98.01% of shares in the Paraguayan company Sudameris Bank SAECA, and completes Intesa’s withdrawal from South America after many years, a process started in 2003 when Intesa decided to concentrate on the emerging markets of Central Europe.

Don’t be put off, the process is really not as difficult as it seems.

You could in theory deal with the immigration processing yourself, if you have plenty of time and patience. However, it is customary to hire a law firm or maybe a paralegal (known in Paraguay as a gestor) to handle matters for you. These people are experienced at what they do and generally help you move through the bureaucracy much more smoothly.

The information below was supplied by the Paraguayan Consulate in London, UK.

TSX VENTURE: LAT

TORONTO, ONTARIO–(Marketwire – July 16, 2008) – Latin American Minerals Inc. (TSX VENTURE:LAT) reports the discovery of 10 diamonds, ranging in size from 0.002 to 0.04 carats on its Capiibary Diamond Exploration Property in north-eastern Paraguay. Photographs of the recovered diamonds are attached to this press release. Additional photographs are posted on the Latin American Minerals website at www.latinamericanminerals.com.

The Capiibary Diamond Exploration Property, located approximately 100 km north of Latin American’s Paso Yobai Gold Project, covers approximately 165,000 hectares (1,650 square kilometres). The majority 160,000 hectares are 100% owned by Latin American Minerals. On the remaining 5,000 hectares, Latin American has an option to earn a 70% interest by making escalating cash payments totalling $1.5 million over 4 years and, subject to standard dilution provisions, Latin American can earn up to a 100% interest with the vendor retaining a 3% gross sales royalty.

Diamonds were initially found in the Capiibary region by local prospectors panning for gold in the 1960s. Some years later, De Beers collected 4 stream samples from the region, of which one contained 6 diamonds and all contained kimberlite indicator minerals (”KIMs”). Recently, Latin American collected 16 samples at various locations in the region of the initial discovery; four samples contained diamonds and 14 contained KIMs which include chrome spinels and garnets. The diamonds are champagne to brilliant white, slightly abraded and several exhibit exceptional crystal structures suggesting minimal alluvial transport. Microprobe work has been completed on the chrome spinels and they were found to fall within the kimberlite stability field. Microprobe work on the garnets is being scheduled.

Latin American’s diamonds were recovered during reconnaissance sampling of two small streams, within 3 km of the headwaters defining the small drainage basin covering approximately 25 square km. The source area for the streams covers a north-westerly trending area measuring 12 km long and 1.5 km wide and defines the south-western limit of the drainage basin (see Capiibary Exploration Project map attached to this press release). Locally, this north-westerly trend defines a regionally structural corridor which is known to contain mafic intrusive complexes and linear magnetic features identified by regional airborne magnetics. Regionally, this area is part of the diamond rich Alto Paranaiba Igneous Province (”APIP”) of Southern Brazil.

“This discovery demonstrates Latin American’s commitment to regional exploration and our ability to find new exciting exploration plays in remote parts of South America,” commented Dr. Waldo Perez, Senior VP Exploration.

David Wahl, President and CEO, reports, “Stream sampling is continuing and a ground magnetometer survey will commence shortly to cover the 18 square kilometre area defining the south-western limits of the Capiibary drainage basin, which may be the source area for the diamonds.”

Geology of the Region is composed of Jurassic sandstones intruded by the Alto Paranaiba Igneous Province that extends from Brazil into Paraguay (see map of Mafic Complexes attached to this press release). The APIP is one of the largest ultramafic potassic igneous provinces in the world. In Brazil, these rocks generated the source of diamonds in the Alto Paranaiba and Ipora region, which are being explored and developed by a number of companies.

Patricia Sheahan, a well-known diamond expert and a Director of Latin American Minerals since 2007, indicated that, “The Capiibary property and surrounding area show considerable promise. There are many excellent diamond projects – mining and developing – nearby in Brazil. Uruguay has seen exploration activity too, so it is timely for Latin American Minerals to concentrate on Paraguay’s promise.”

Waldo Perez, P.Geo is Latin American Minerals Inc.’s internal Qualified Person under the requirements of National Instrument 43-101 and is responsible for this press release.

Latin American Minerals Inc. is a mineral exploration company focused on the acquisition and development of properties of significant merit in under-explored but highly prospective countries of Latin America.

Sampling and Analytical Protocols: The sampling and analytical protocols were established, implemented and supervised by or under the direction of Dr. Waldo Perez, the Company’s internal Qualified Person as defined by National Instrument 43-101. Stream Sediment samples were collected from the river in traps under logs, deep holes and river banks. The samples were sieved in the field into three fractions: fine (0.3-0.4 mm), medium (0.4-0.71 mm) and coarse (0.71-1.0 mm). The sieves are similar to those used by De Beers. The three fractions for each sample were sent to SGS Geosol Lab in Brasilia (Brazil). Each fraction was sieved again in the lab and minerals where separated and inspected by visual analysis under microscope. KIM and diamonds were photographed and reported as total number of grains found. Probe analysis of Chrome-Spinels was performed by De Beers in Johannesburg, South Africa.

Note: This news release contains forward-looking statements, which can be identified by the use of statements that include words such as “could”, “potential”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “likely”, “will” or other similar words or phrases. These forward-looking statements, including statements regarding the Corporation’s beliefs in potential mineralization, are based on current expectations, assumptions and projections about future events and entail various risks and uncertainties that are beyond the Corporation’s ability to control or predict. Actual results may materially differ from expectations as more information regarding a property is gathered or if the Corporation’s estimates or assumptions prove inaccurate. Factors that may materially affect actual results include, but are not limited to, political, business and economic conditions in jurisdictions where the Corporation conducts business, and risks associated with mineral exploration and production. The Corporation does not intend, and does not assume any obligations, to update forward-looking statements, whether as a result of new information, future events or otherwise, unless otherwise required by applicable securities laws. Readers should not place undue reliance on forward-looking statements. The results described herein are exploratory in nature and there can be no assurance that they are indicative of Mineral Resources as defined in accordance with National Instrument 43-101. Historic estimates contained herein do not meet the definition of Mineral Resources as contained in National Instrument 43-101 of the Canadian Securities Administrators. Furthermore, neither the Corporation nor the Qualified Person has reviewed any of the reports or exploration results underlying such estimates and accordingly, such estimates (and any assumptions underlying such estimates) have not been independently verified. As a result, there can be no assurance that such historic estimates are reliable, or that such estimates are indicative of any mineralization which would meet the criteria of Mineral Resources as defined in accordance with National Instrument 43-101. Consequently, no reliance should be placed upon these historical estimates. However, the Corporation believes that these historical estimates may be indicative of the potential for mineralization on these properties.

NOTE: To view the maps associated with this release, please visit the following link – http://media3.marketwire.com/docs/lat716.pdf

The TSXV has not reviewed and does not accept responsibility for the adequacy or the accuracy of this release.