Nicaragua grants Chinese company license to extract minerals

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The government of Nicaragua has approved a 25-year concession to a Chinese company for the exploration and exploitation of minerals on the Caribbean coast. This measure allows the company Xinxin Linze to carry out mining activities in a specific area called Nuevo Bijagual, located in the municipalities of Siuna and Mulukukú, in the country’s northern Caribbean coast.

The deal, covering a total of 36.6 hectares, as specified in the official document, does not specifically detail which minerals will be subject to exploitation by the Chinese company. However, it is expected that Xinxin Linze will commence its exploration activities within a period of up to four years, with the possibility of extending this period for an additional year.

Commercial relations between China and Nicaragua have gained significant momentum since the reestablishment of diplomatic ties in 2021, and have been notably bolstered since the Free Trade Agreement signed by both countries came into effect in January this year. This deal is the latest in a series of actions that demonstrate the close collaboration between both countries in various areas, including the economic sector.

Xinxin Linze is a subsidiary of Xinjiang Xinxin Mining Industry Company Limited, a Chinese company with interests in various non-ferrous metals, such as nickel and copper. The company’s construction of a camp in the Mulukukú area indicates progress towards the implementation of its mining operations in Nicaragua.

Despite the economic opportunities this concession may offer, there are significant concerns, particularly regarding the environmental and social impact of mining in the region. Nicaraguan environmentalist Amaru Ruiz has expressed concern about the government’s policy of granting mining concessions to Chinese companies, stating that this could have negative repercussions for the environment and local communities, as reported by local outlet 100% Noticias.

Ruiz has also highlighted the negative reputation that some Chinese companies have in terms of legal, environmental, and social compliance, adding an additional layer of concern over foreign mining operations in the country.

The mining industry in Nicaragua has experienced notable growth in recent years, with gold emerging as the country’s leading export product, generating over $1 billion last year. This concession adds to over 170 concessions granted for metallic mining and 127 for non-metallic mining in Nicaragua, reflecting the strategic importance the government places on this sector.

In the context of Nicaragua–China relations and the growth of the mining industry in the country, this concession presents both significant opportunities and challenges, which will require careful oversight and continuous analysis of its impact on the environment, local communities, and the national economy.

Main source:

Gobierno de Nicaragua otorga concesión a empresa china para explorar y explotar minerales en la costa del Caribe | Revista EyN (April 22, 2024).

Others related source:

Daniel Ortega otorga concesión minera a empresa china | Diario Las Américas (April 22, 2024).

Nicaragua otorga concesión minera a una empresa china | ECO TV Panamá (April 22, 2024).