By James Lawrence - News - 1 month ago

Paraguay to Build “Golden Goose” Mining Facility Powered by World’s Largest Dam

Paraguay, currently home to the world’s largest dam, will soon also be home to the world’s largest crypto mining center, according to a Wednesday, November 21 report from IJGlobal. The project dubbed the “Golden Goose” will include five mining farms to be constructed in Ciudad del Este under the terms of an agreement between the South Korean blockchain venture, the Commons Foundation, and Sisay.

The Itaipú dam is a hydroelectric dam on the Paraná River located on the border between Brazil and Paraguay, the binational undertaking overtook China’s Three Gorges Dam as the highest annual energy production of a hydroelectric dam in the world in 2016, sitting at a whopping 103,098,366 megawatt hours (MWh). The project cost $17.4 billion to construct and has a capacity of 14GW spread across its 20 units, ten in Paraguay and ten in Brazil.

According to Wikipedia, the ten generators capacity far exceeds the electricity demand in Paraguay, and most their production is exported back to the Brazilian side. This is reflected in statements made by Choi Yong-Kwan, chairman of the Commons Foundation, “Only 10-20% of electricity is produced at Itaipu hydroelectric plant and consumed in Paraguay. More than 80% of its electricity is exported overseas. We will build the world's largest mining center in Paraguay using low-cost and abundant clean energy."

Despite the sales of excess Paraguayan electricity benefitting the government, the government of Paraguay is supporting the project, believing there to be more money in crypto mining than in electricity. Hugo Velázquez Moreno, vice president of Paraguay, said in a statement: "The Paraguay government will actively support the Commons Foundation's Golden Goose project and provide tax breaks through constitutional revisions."

Due to the abundance of clean and cheap energy, mining projects have already started popping up around Paraguay. According to the IJGlobal article, “Participants in the Golden Goose project will receive 30% of the mining profits and 70% of the cryptocurrency exchange profits, all in the form of MicroBitcoin (MBC) tokens, which utilize Bitcoin’s blockchain protocol.”

The story, also covered by PR Newswire, says the Paraguay government has provided five 10,000 square meter areas of land for the mining centers and infrastructure and will run under a 15-year contract.