The Oakland Institute Report Reveals Growth in Nicaragua’s Gold Mining Sector Despite US Sanctions
Despite the United States government’s sanctions against Nicaragua’s gold mining sector in 2022, a report by the Oakland Institute has confirmed significant growth in the industry. The report, titled “Nicaragua’s Gold Rush,” highlights the substantial increase in gold mining activities led by foreign companies in the country, with the United States being the largest importer of Nicaraguan gold, accounting for 79 percent of the total exports.
In June 2022, the US government imposed sanctions on the Nicaraguan Mining Company (Eniminas) and further expanded the sanctions in October of the same year through an executive order. However, the Oakland Institute’s report concludes that these sanctions have not been enforced, allowing foreign mining companies to expand their operations and providing crucial income to the Ortega regime.
The report also sheds light on the devastating impact of the gold rush on indigenous and Afro-descendant communities in Nicaragua’s Autonomous Regions of the Caribbean Coast. These communities have borne the brunt of violence, massacres, kidnappings, and the colonization of their lands as a result of the rapid expansion of the gold mining industry.
Canadian Caliber Mining Corp. is identified as a major player in Nicaragua’s gold mining sector, accounting for 41 percent of the country’s gold exports and significantly expanding its mining concessions since the imposition of US sanctions in 2022.
Furthermore, prominent investment firms and mining corporations based in the US and Canada, including BlackRock Inc., Van Eck Associates Corp., Invesco Ltd., B2Gold Corp., and Agnico Eagle Mines Ltd., are also involved in Nicaragua’s gold sector, according to the report.
The Oakland Institute’s findings have raised concerns about the effectiveness of US sanctions and the impact on vulnerable communities in Nicaragua. The report urges greater scrutiny of foreign investment in the country’s gold industry, especially in light of the ongoing human rights and environmental concerns associated with the sector’s rapid expansion.