Nicaragua grants 19 mining areas to Chinese firms after US sanctions

Nicaragua has significantly expanded mining concessions granted to Chinese firms, reaching 19 such agreements since the United States imposed sanctions on the country's mining sector. The latest grants, reported by the official newspaper La Gaceta, involve two open-pit mining concessions awarded to the Chinese company Norther Mining Company S.A.

These new concessions, covering the La Alforja and El Pijibaye lots in the South Caribbean Autonomous Region, add substantial territory to Chinese control. La Alforja spans over 48,000 hectares in the municipalities of Laguna de Perlas, El Rama, and Kukra Hill, while El Pijibaye covers more than 9,000 hectares in Nueva Guinea. Since 2021, Nicaragua has awarded concessions across 84 lots to 22 Chinese companies, encompassing over 1.27 million hectares, approximately 10% of the nation's total land area. This expansion notably includes protected zones and territories belonging to indigenous and Afro-descendant communities.

Environmental NGO Fundación del Río reports that the Nicaraguan government has altered its legal framework to create advantages for Chinese mining investments and to bypass U.S. Treasury Department sanctions. These sanctions, imposed in mid-April, targeted children of President Daniel Ortega and Vice President Rosario Murillo, a deputy minister, seven other citizens, and seven mining companies involved in gold extraction and trade. Despite sanctions, Nicaragua's mining exports surged in 2025, reaching $2.009 billion, a 44.4% increase from the previous year. Raw gold alone generated $1.971 billion, solidifying its position as the country's top export product with a record 19.9 metric tons.