Photo: Wikimedia Commons.
China continues to increase its presence in Latin America by securing a new mining concession in Nicaragua, consolidating its relationship with Daniel Ortega’s regime. The local subsidiary of Xinjiang Xinxin Mining Industry Company Limited received authorization to exploit an area of 9,102 hectares in northern Nicaragua for 25 years. This lot adds to more than 50,000 hectares previously granted across six licenses, reflecting the growing ties between Managua and Beijing, which concern the international community due to the displacement of U.S. projects in the region.
The mining concession includes a 3% royalty to Ortega’s regime and a requirement to begin operations within four years. In addition to Xin Xin Linze Mining Group, other Chinese companies, such as Zhong Fu Development and Thomas Metal, were recently authorized to operate in Nicaragua. This increase in Chinese activity highlights its expansion strategy in Latin America, where it is already the main trading partner of most major economies, excluding Mexico and Colombia, according to a UN report.
Relations between Nicaragua and China intensified in late 2021 when Ortega severed ties with Taiwan to establish a strategic partnership with Beijing. As a result, 71% of Nicaraguan products now enter the Chinese market tariff-free, thanks to a free trade agreement between the two countries. This agreement aims to position China as a key supplier of goods and machinery for Nicaragua and to encourage Chinese investments in the country.
Simultaneously, Ortega reached agreements with Chinese companies like CAMC to build a deep-water port in Bluefields and with CCSA to develop an Intelligent Logistics Center. These initiatives are part of a broader strategy to strengthen bilateral economic and trade cooperation, which Ortega’s regime describes as a “milestone” in the relationship between the two countries, marking a significant shift in the geopolitical balance of the region.
Main Source: (Spanish)
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External Links: (Spanish)
Nicaragua concede nuevo yacimiento minero a empresa china – Swiss Info
