In a new report, Nicaragua’s Gold Rush, the Oakland Institute exposes how, despite US sanctions on Nicaragua’s gold mining sector, the industry has boomed, fueled by foreign business interests. The US is the primary destination, accounting for a staggering 79 percent of total Nicaraguan gold exports.

“The devastating cost of this expansion is borne by the Indigenous and Afro-descendant communities in the Caribbean Coast Autonomous Regions, who face incessant violence, massacres, kidnappings, and colonization of their lands,” said Anuradha Mittal, Executive Director of the Oakland Institute and coauthor of the report.

The US government issued sanctions against state-owned mining company ENIMINAS in June 2022, accusing the Ortega-Murillo regime of “using gold revenue to continue to oppress the people of Nicaragua and engage in activities that pose a threat to the security of the hemisphere.” President Biden substantially expanded these sanctions by executive order in October 2022, authorizing the US Treasury to sanction any entity with financial connections to the US involved in Nicaragua’s gold sector.

The report reveals that the US government has so far failed to enforce these measures, allowing the gold sector to expand massively and continue to deliver significant revenues for the Ortega-Murillo regime and the shareholders of the firms involved. Numerous mining companies falling under the scope of the sanctions continue to operate with impunity and acquire new gold mining concessions amidst a surge in violence against Indigenous communities.

The main beneficiary of the gold boom is Canada-based Calibre Mining Corp., whose 57 concessions cover more than 1.1 million hectares (ha) – nine percent of Nicaragua’s total territory. 26 of its metallic mining concessions – covering over 940,000 ha – were awarded between June 2021 and December 2022. 11 of them – totaling 336,598 ha – were awarded after the US Treasury announced the sanctions in June 2022. If Calibre’s remaining 15 requests are granted, a single foreign company will control 1.57 million ha, or 13.1 percent of Nicaragua’s landmass. Adding to the concern is the overlap of many of Calibre’s concessions with state-recognized Indigenous and Afro-descendant territories, where community members report a lack of consultation and consent– a violation of Nicaraguan law and international norms. As a Canadian company operating in Nicaragua that also owns mining concessions in the US through wholly-owned subsidiaries, Calibre is a clear candidate for sanctions designation under Biden’s executive order.

The report also identifies other transnational corporations controlling vast mining concessions in Nicaragua, including Canada’s Mako Mining Corp.; China’s Zhong Fu Development; Colombia’s Grupo Mineros; and the UK’s Condor Gold and Royal Road Minerals. The leading financiers of these foreign companies include US investment firms BlackRock Inc., Van Eck Associates Corp., and Invesco Ltd., Canadian mining firms B2Gold Corp. and Agnico Eagle Mines Ltd.

“The Biden administration talks a big game about using targeted sanctions to hold human rights violators accountable in Nicaragua, but the Treasury Department lets the worst of these actors off the hook,” said Josh Mayer, Oakland Institute fellow and coauthor of the report. “Sanctions enforcement must go beyond Nicaraguan entities to have any chance of stopping the violent colonization of Indigenous and Afro-descendant territories,” he continued.

“By failing to implement the sanctions, the Biden administration is effectively sustaining US and international mining companies with US investors that profit from Nicaragua’s gold sector. Neglecting to hold these financial interests accountable not only allows violence against Indigenous and Afro-descendant communities to escalate but is another evidence of the lack of credibility of President Biden’s commitment to upholding human rights,” concluded Mittal.

Source: oaklandinstitute