Nicaragua grants new mining licence to Chinese company
Photo: Yondun.
The Nicaraguan government has granted a new 483-hectare open-pit mining concession to the Chinese company Xinjiang Xinxin Mining Industry Company Limited.
The concession, approved by the Ministry of Energy and Mines, has a duration of 25 years and was granted to the Chinese mining company through its local subsidiary Nicaragua Xinxin Linze Mining Group S.A., under the representation of Chinese executive Edward Xiang Liu.
The Chinese company will be allowed to extract metallic and non-metallic minerals in an area called Río Dorado Sur. The resolution stipulates that Nicaragua Xinxin Linze Mining must start operations within the next four years. In addition, the company will pay a 3% in royalties on the minerals extracted, although it is not specified which minerals are due to be extracted.
This new permit adds to the 12 concessions granted by Daniel Ortega’s government to Chinese companies in the last two years, half of which have been awarded since April this year.
The new mine will be developed in the municipality of San Juan de Limay, located in the northern department of Estelí. The Chinese company plans to explore and exploit mineral resources in Nicaragua’s Northern Caribbean Autonomous Region, an area predominantly inhabited by indigenous Miskitu and Mayagna communities.
Since April this year, more than 3,000 additional hectares have been granted to the Chinese company in areas close to the one tendered in this latest resolution. This brings the number of concessions granted to Nicaragua Xinxin Linze Mining Group S.A. for the exploitation of mineral resources in various regions of the country up to four. In total, these concessions cover 51,931.71 hectares of national territory across Nicaragua.
In addition to Nicaragua Xinxin Linze Mining, two other Chinese companies, Zhong Fu Development and Thomas Metal, have received mining concessions in Nicaragua. These deals are part of the country’s recent push to attract foreign investment in the mining sector, especially following the establishment of diplomatic relations with the Peoples’ Republic of China in 2021, after Nicaragua broke off relations with Taiwan.
The mining concession has drawn criticism from environmentalists who have questioned the government for continuing to grant open-pit mining permits, arguing that this could have serious environmental and social impacts on local communities.
By the end of 2023, Nicaragua had granted a total of 299 mining concessions, of which 172 were for metallic mining and 127 for non-metallic mining. During that year, the mining industry generated exports worth US$1.2 billion, which represented an increase of 22.4 % compared to 2022, thanks to an increase in gold and silver exports. This growth was due to a rise in market prices and higher export volumes, according to the Central Bank of Nicaragua.
Main source:
El Gobierno de Nicaragua otorga la duodécima concesión minera a empresas chinas – Infobae.
Other related sources:
Minera china recibe nueva concesión en Nicaragua – La República.