The Nicaraguan government has awarded China’s Xinxin Linze Minería Group a new 25-year concession to mine deposits in the north of the country, according to a resolution published on Tuesday in the official newspaper La Gaceta, which did not specify the minerals that will be extracted.
The regulation states: “On behalf of the State of Nicaragua, a mining concession is granted to the Nicaraguan Xinxin Linze Mining Group, Inc., for the extraction of metallic and non-metallic minerals on the land parcel known as Rio Dorado.”
The land, covering 3,628 hectares, is located near the town of San Juan del Limay in the Esteli department, about 180 km north of Managua.
This is the third concession awarded this year by Xinxin Linze, which received a 2,091-hectare concession in the northern Caribbean region in June and a 36.6-hectare concession in the same area in April.
The Chinese company will pay a 3% royalty on the minerals mined, which is not specified in the resolution, and must begin operations within the next four years.
Nicaragua and China launched a free trade agreement in January.
In 2021, Managua established relations with China after breaking with Taiwan, which Beijing considers its own territory and seeks to regain control over, even by force if necessary.
In June, the Nicaraguan government announced the cancellation of nearly 30 mining concessions across the country through an order of the Ministry of Energy and Mines published in the Official Gazette. The reason for the cancellation was “inactivity”.
Local media said Xinxin Linze is a subsidiary of mining giant Xinjiang Xinxin Mining Co., Ltd., which has interests in nickel, copper and other non-ferrous metals.
In addition to this company, two other Chinese mining companies have also obtained concessions in Nicaragua: Zhongfu Development and Thomas Metals.
Xinxin Linze has been awarded three concessions for mining operations in Nicaragua, covering a total area of 5,755 hectares (Image source: Shutterstock)
