Paraguay's natural resources include timber, iron ore, manganese, limestone and fresh water. It may also have one of the largest titanium deposits in the world. Additionally, due to its abundant natural waterways, Paraguay is a significant producer of hydropower.
The forests of Paraguay supply enough wood to meet its domestic needs for fuel and construction, and to conserve this resource, timber exportation is banned. However, forests continue to dwindle because of agricultural development projects, especially the grazing of cattle. The availability of iron ore, manganese and limestone contributes to the government-run steel and cement industries. The extraction of up to 21 billion metric tons of titanium, discovered and claimed in 2010 by CIC Resources, Inc., is under development as of 2014. Paraguay's streams feed the Guarani Aquifer under the River Plate Basin, which is one of the largest reservoirs of fresh drinking water in the world.
Hydroelectric power generated by natural waterways not only meets almost 100 percent of Paraguay's domestic electricity needs, but it also allows the country to export electricity to Argentina, Brazil and other countries. The Itaipu Dam bordering Paraguay and Brazil is one of the largest hydroelectric dams in the world. Another major dam, the Yacyreta, is owned jointly by Paraguay and Argentina. In all, about 90 percent of the hydroelectric energy created in Paraguay is exported to other countries.