Chinese companies are quickly securing gold mining rights in Nicaragua, a country currently at odds with the United States.
According to China Observer on September 28, the Nicaraguan government has granted mining rights to 22 Chinese companies, covering over 1.2 million hectares since 2021. This area represents about 10% of Nicaragua's total land.
Nicaragua is rich in gold, which has become a major export commodity. The recent rise in international gold prices has made it a key source of foreign currency for the country. Local media report that there are currently 29 gold exporting companies, and while the number of mining rights granted to Chinese firms has increased significantly, few Chinese companies are listed among the actual exporters.
In April, the U.S. Treasury Department sanctioned seven companies and five individuals involved in Nicaragua's gold industry. Among those sanctioned were Zhongfu Development, represented by Chinese businessman Bian Feiwu, and Xin Xin Lin Ze. The U.S. government believes these entities are linked to funding the current Nicaraguan regime, which has been exhibiting anti-American behavior.
However, Chinese companies appear to be able to circumvent U.S. sanctions. They can sell mined gold to countries other than the U.S. and receive payments through alternative financial networks.
Despite U.S. sanctions, Chinese firms continue to expand their presence in Nicaragua's gold sector. This month, the Nicaraguan government granted a 25-year mining concession for a 262 square kilometer gold mine to Lin Ze Mining, whose legal representative is the same as that of the sanctioned Xin Xin Lin Ze Group. This development underscores the rapidly strengthening ties between China and Nicaragua, regardless of U.S. sanctions.
The relationship between Nicaragua and China has grown closer since 2021, when Nicaragua severed diplomatic ties with Taiwan and established relations with China. Since then, Nicaragua has been expanding economic cooperation, including signing a free trade agreement with China.
* This article has been translated by AI.
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