Nicaragua Grants Mining Lease to China

Nicaragua's communist government has awarded its first open-pit mining lease to a Chinese firm, further solidifying China's control over the country's mineral resources. This lease, confirmed by state media on Tuesday, is part of a broader trend where President Daniel Ortega has granted approximately 15 mining leases to Chinese companies since October 2023. The latest agreement, published in La Gaceta, allows China’s Nicaragua Xinxin Linze Minería Group to exploit metallic and non-metallic minerals over a 25-year period in a 3,600-hectare area known as Rio Dorado. In exchange for the lease, the Chinese company will pay the Nicaraguan government $0.25 per hectare annually for the first year. Notably, some of the leased areas overlap with the North Caribbean Coast Autonomous Region, home to indigenous communities such as the Miskitos and Mayangnas. Reports indicate that the total area granted to Chinese companies since October 2023 exceeds 234,496 hectares, raising concerns about the environmental and social implications of these rapid concessions. Ortega's pivot towards China accelerated after Nicaragua severed ties with Taiwan in December 2021, aligning with China's "One-China Principle." This shift has led to Nicaragua's participation in China's Belt and Road Initiative, which critics label a "debt trap." Additionally, Ortega has secured a $400 million loan from China for infrastructure projects, including plans to renovate a military airport into a second international airport, aiming to revitalize the country's aviation sector.