Chinese firms hold over 500,000 hectares in mining concessions in Nicaragua

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The regime of Daniel Ortega and Rosario Murillo has deepened its economic partnership with China, with mining emerging as a central pillar of that relationship. Between 2023 and 2025, the Nicaraguan government granted more than 500,000 hectares in mining concessions to Chinese companies, according to official data analyzed by Confidencial.

A total of 503,562 hectares, equivalent to over 5,000 square kilometers, are now under the control of eight Chinese firms, marking one of the largest foreign mining expansions in Nicaragua’s recent history. Major concession holders include Zhong Fu Development S.A. (181,254 ha), Thomas Metal S.A. (127,480 ha), Brother Metal S.A. (59,564 ha), and Waslala Mine S.A. (49,950 ha), primarily operating in the Northern Caribbean, the Mining Triangle, and southern regions.

These concessions grant exclusive rights to explore, extract, and process minerals, including authorization to build processing and smelting plants. Many of the mining sites are located in environmentally sensitive and indigenous territories, raising strong objections from environmental and community organizations.

According to former members of the dissolved Centro Humboldt and other civil society groups, the government’s mining policy reflects a broader pattern of “rapid transfer of natural resources to geopolitical allies,” particularly China, with little transparency or environmental oversight.

The projects are part of Nicaragua’s growing alignment with Beijing following the restoration of diplomatic relations in 2021. Since then, China and Nicaragua have signed agreements tied to the Belt and Road Initiative (BRI), covering energy, infrastructure, and now mining. Gold, Nicaragua’s top export commodity, has become a crucial revenue stream for the Ortega administration, though it faces accusations of corruption, environmental harm, and human rights violations.

Official data from the Central Bank of Nicaragua shows a 20% increase in mining exports in 2024, reaching USD 1.39 billion. Yet, much of that revenue remains unaccounted for, as royalties are managed directly by the government without independent auditing. Local communities report widespread river pollution, deforestation, and loss of livelihoods, while critics warn of a “new extractive dependency” on Chinese capital.

Regional analysts note that China’s deepening involvement in Nicaragua’s mining sector reflects a strategic push across Latin America to secure long-term access to critical minerals, such as gold, copper, and lithium, essential for its technology and energy industries. In Nicaragua, this expansion takes place amid the country’s international isolation, allowing opaque bilateral deals with limited accountability.

With over half a million hectares now under Chinese control, Nicaragua stands out as a key frontier of China’s mining expansion in Central America, where economic pragmatism, authoritarian governance, and environmental degradation converge under the guise of development.

* Original text in Spanish. Translated by Large Language Model (LLM) technology.

Main Source:

Empresas chinas en Nicaragua superan las 500 000 hectáreas en concesiones mineras – Confidencial

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