Nicaragua’s gold boom is now encroaching on protected areas and Indigenous land

Nicaragua's mining sector has experienced a significant boom in recent years, with gold emerging as a leading export and a crucial component of the nation's economy. This surge in activity contrasts with the previous two decades, which saw more measured growth. However, the current wave of mining activity has raised serious environmental and social concerns, particularly in relation to protected areas and Indigenous lands.

The recent escalation of mining operations coincides with Nicaragua's growing political and economic isolation. President Daniel Ortega's tightening grip on dissent and the cancellation of elections have prompted sanctions from nations such as the United States and Canada. These sanctions have hindered international trade and cooperation for Nicaraguan officials and institutions, making it challenging for them to engage in global commerce.

In response to the surge in gold prices, the Nicaraguan government has turned to mining as a means of economic stability. This strategy, however, has proven detrimental to both the environment and Indigenous communities. Critics argue that mining concessions have begun encroaching upon protected areas and ancestral territories, posing threats such as pollution, deforestation, and the displacement of residents.

Carmen Corea-Sánchez, the lead author of a recent report by the Indigenous community-based group Wangki and other researchers, emphasizes the dramatic increase in the number of mining concessions granted since 2022. This period has witnessed a "golden age of mining," driven largely by China's interest in Nicaragua and the broader Latin American region. In 2006, the year preceding Ortega's return to power, Nicaragua exported 109,200 ounces of gold, highlighting the sector's growing importance to the country's economy.