Nicaragua grants another license to Chinese mining company in areas totaling 8.5% of the territory
The Government of Nicaragua granted a new mining concession to a Chinese company to exploit minerals in the department of Madriz, bringing the total number of lots granted to firms from that country between 2021 and 2026 to 72, covering 8.5% of the national territory.
TL;DR
- Nicaragua granted a new open-pit mining concession to Palacagüina Mining, a Chinese company, in the Madriz department.
- The concession covers 2,500 hectares in San Juan del Río Coco municipality.
- Between 2021 and 2026, the Nicaraguan government has awarded mining concessions on 72 lots to 16 Chinese companies.
- These concessions collectively cover 1,015,725.44 hectares, equivalent to 8.5% of Nicaraguan territory.
- Environmental organizations like Fundación del Río have denounced that these concessions include protected areas and indigenous territories.
- Critics cite environmental risks and a lack of transparency in the concession process.
- Concerns have been raised about the legitimacy and experience of some Chinese mining companies operating in Nicaragua.
- The scope of interest extends beyond gold and silver to strategic minerals like copper, cobalt, and uranium.
- Nicaragua has reportedly reformed its legal framework to facilitate Chinese mining investments and potentially circumvent U.S. sanctions.