China underinvoices copper purchases from Nicaragua to evade taxes
China's ambassador to Nicaragua announced copper as the new "star export product," but his statements mainly refer to scrap metal purchases. However, commercial records and mining concessions suggest that copper linked to mining activities could have a greater impact. Differences in data and customs classifications make it difficult to ascertain the true volume and value of the mineral leaving the country.
TL;DR
- China's ambassador announced copper as a new star export, but this largely refers to scrap metal, not direct mining exports.
- There are significant discrepancies between Nicaragua's reported copper exports and China's reported imports, with a 27-fold difference in recorded value for copper minerals and concentrates.
- Ambiguous customs classifications, such as 'ashes and residues containing metals,' are allegedly used to obscure the true type, value, and quantity of exported minerals.
- Companies are suspected of underinvoicing mineral exports to Nicaragua to reduce taxes and royalties, while China records the full commercial value, causing millions in losses for Nicaragua.
- Three companies—Mark X Ventures Inc., Xinxin Linze Minería Group, S.A., and Santa Rita Mining Company S.A.—are authorized to export copper from Nicaragua.