Despite the imposition of sanctions by the U.S. against Nicaragua in 2022, numerous mines are still operational, functioning as usual, or even expanding, as per a recent report from the Oakland Institute, a think tank focusing on social and environmental issues.
Despite the sanctions, the U.S. remained Nicaragua’s largest gold importer in the previous year, with imports totaling around $465 million. The expansion of mining activities has led to pollution and human rights violations against Indigenous communities.
The U.S. sanctions, which were intended to address a surge in human rights abuses against local communities, have not been fully enforced, allowing mining companies to continue their operations and even venture into new regions of the country.
Mining Activities Persist in Nicaragua Despite U.S. Sanctions, Reveals Recent Investigation (Credits: Monga Bay)
According to the Oakland Institute’s report, the Treasury Department announced sanctions against the state-owned mining company Empresa Nicaragüense de Minas (ENIMIENAS) in June 2022, citing its use of gold revenue to oppress the people of Nicaragua.
Subsequently, President Biden expanded the sanctions to cover all individuals and companies involved in Nicaragua’s gold sector through Executive Order 14088. However, enforcing these sanctions has proven challenging, and their effectiveness as a foreign policy tool remains questionable.
Despite the sanctions, the U.S. continued to be the largest importer of Nicaraguan gold last year, according to data from Nicaragua’s Central Bank. This contradiction underscores the difficulty in implementing effective measures to curb mining activities.
Between 2021 and 2023, the land area concessioned for mining in Nicaragua more than doubled, reaching approximately 1.8 million hectares, which now accounts for around 15% of the country’s total land area. This expansion has raised concerns about the environmental impact and its effects on Indigenous communities.
Amaru Ruiz, the head of Fundación Del Río, an organization monitoring land invasions and environmental issues in Nicaragua, highlighted the lack of adherence to basic environmental regulations by industrial mining operations. Additionally, the influx of non-Indigenous artisanal miners, locally known as colonos, into Indigenous territories has exacerbated tensions and led to instances of violence.
The Oakland Institute’s report also documents numerous human rights violations, including murders, kidnappings, and community displacement, particularly in Indigenous territories such as Mayangna Sauni As on the Caribbean coast.
Despite the sanctions, Canadian mining company Calibre, one of the largest mining operators in Nicaragua, has continued to expand its operations. The company, which has several subsidiaries in the U.S., obtained additional concessions totaling hundreds of thousands of hectares after the sanctions were announced.
Despite assertions that they only purchase ore from artisanal miners meeting legal requirements, Calibre’s expansion plans raise concerns about its impact on Indigenous territories and communities.
Various U.S. companies and investment firms, including B2Gold, Invesco, Van Eck Associates, ASA Gold, Precious Metals, and BlackRock, have connections to Nicaragua’s mining sector either through direct investments or shareholding.
The Oakland Institute’s report calls for urgent action from the Biden administration to enforce Executive Order 14088, given the significant influence these multinational companies wield in Nicaragua’s gold mining industry and the U.S.’s status as the primary destination for Nicaraguan gold exports.
