In the last decade, gold has established itself as Nicaragua’s main export product, even displacing traditional products such as beef and coffee. Gold shipments in 2021 amounted to 880.5 million dollars, according to statistics from the Center for Export Procedures (Cetrex). Of that total shipments abroad, the Caliber Mining company placed 328.1 million last year, according to official company statistics.
This dispatch level represents 37.2% of Nicaragua’s total gold exports, all of which material was sent to the United States. From January to September 2022, 708.7 million dollars have been exported and the year could close in the order of 955.9 million dollars.
That same year, the shipment of that metal from Nicaragua to the United States totaled 744 million dollars. These exports represented 79% of all gold shipments from Nicaragua during the year. After the sanctions imposed by the Treasury against the General Directorate of Mines (DGM) that entire market could be affected.
Related news: Caliber Mining cancels request for three mining concessions in Nicaragua after US sanctions
To evade the sanctions on the state-owned Nicaraguan Mining Company (Eniminas), imposed in June of this year, the regime decided to channel shipments through the DGM and the US Treasury considers said Directorate to be an “important piece” in the transactions. of gold in the Central American country.
“Ortega and his cronies continue to use the profits from the production and sale of gold to line their own pockets and pay those who keep the regime in power,” explains the US Treasury.
More than 3,500 jobs in danger
Caliber Mining is a Canadian capital company that operates three mines in Nicaragua. Its operations are located in Mina La Libertad, in Chontales; El Limón Mine, in León; and Mina Pavón, in Matagalpa. It employs more than 3,500 people, of which 98% are Nicaraguans.
In 2021, Caliber produced 182,755 ounces of gold exported to the United States, which left revenues of 328.1 million dollars; As of September 2022, a total of 49,081 ounces of gold have been exported, but the total amount was not disclosed, according to official company information available on its website.
According to Caliber Mining’s 2021 Sustainability Report, for every dollar generated from gold production, approximately 63 cents is used for wages, taxes and local purchases in Nicaragua. Additionally, there was procurement spending of $50 million on purchases from 290 domestic suppliers. 5.5 million dollars were also invested in infrastructure and support services.
Caliber cancel grant requests
The company withdrew from three applications for mining concessions in Nicaragua after the sanctions imposed by the United States Treasury Department on the Nicaraguan gold business, according to three documents published by the Ministry of Energy and Mines (MEM) in The Gazette No. 200 this Tuesday, October 25, 2022.
The areas requested for mining are located in the municipalities of Waspam, Bonanza and Rosita, in the Autonomous Region of the North Caribbean Coast (RACCN) of Nicaragua. The first canceled concession was called KAKAU and covered an area of 34,369.59 hectares; the second was YALAM with an extension of 49,997 hectares; the third and last is TANGNI with an area of 41,325 hectares.
A public statement The company’s statement, available on its website, states that “it is proactively reviewing recent sanctions and has communicated with the United States Department of the Treasury to ensure full compliance with these provisions.”
The company highlights that it has a “commitment to continue complying with all relevant international laws and restrictions,” including the economic restrictions of the United States against the Nicaraguan gold business that could extend to other sectors of the national economy and that would affect the foreign direct investment.
In Nicaragua, mining operations occupy 8.3% of the national territory, that is, 9,833.26 square kilometers until the year 2020 with 274 concessions, according to official statistics from the MEM. Official figures indicate that 48,391.59 square kilometers of the national territory are suitable for mining activity, that is, 40.66% of the country.
Income from extraction rights and surface mining rights in Nicaragua left the country, between 2007 and 2020, a total of 4 thousand 531 million 651 thousand 785.45 córdobas. In 2020 alone, income was received in the order of 671 million 160 thousand 726.17 córdobas.
