Economy
The department covers a vast expanse of territory in eastern Bolivia, much of it rainforests, extending from the Andes to the border with Brazil. The department's economy depends largely on agriculture, with sugar, cotton, soybeans and rice being grown. The amount of land cultivated by modern farming techniques is increasing rapidly in the Santa Cruz area, where weather allows for two crops a year.
In recent years, the discovery of natural gas in the department has led to plans for the development of a regional natural gas industry that is likely to boost the local economy. Bolivia’s energy minister said two proposed liquefied petroleum gas plants may allow the country to boost supplies to Brazil and Argentina by 2010, easing a shortage of the fuel after a lack of investment reduced output. The processing plants would be built in Santa Cruz and each would produce about 200 tons of liquefied petroleum gas a day. The plants would help turn a deficit of gas into a “surplus”.
The department also hosts El Mutún, the world's second largest iron ore reserve (after Carajás in Brazil) and largest magnesium deposits are also located there. Located in the Germán Busch Province in the Santa Cruz Department of Bolivia, near Puerto Suárez, El Mutún extends across the border into Brazil, where it is called the Serrania de Jacadigo. Also known as the "Serrania Mutún", it has an area of about 75 square kilometers. Its estimated reserves are about 40.205 billion tons of iron ore of 50% iron, mainly in hematite and magnetite form, and in lesser quantities in siderite and manganese minerals. This can be compared with an estimate of the total world reserves of iron ore: 800 billion tons of crude ore containing more than 230 billion tons of iron.
In July 2004, the people voted in a nation-wide referendum to allow for regulated exportation of the gas.
Read more about this topic: Santa Cruz Department (Bolivia)
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