Nicaraguan mining companies forecast more growth for 2014 in line with the investments made by the sector.
According to statistics from the Center for Exports (CETREX) up to November this year sales of raw gold rose by 10.4% going from 12,001 kg in 2012 to 13,251 in 2013. An increase in value of 2.9 % with revenues of $395.1 million was recorded, while in the same period of 2012 it was $389.9 million .
In the municipality of Bonanza the traditional method of using cyanide and mercury will be abandoned and instead the gravimetric and flotation method will be implemented.
"Alvaro Peralta, HEMCO's Manager, explained that in coordination with the municipal government and the miners, they are implementing new industrial technologies, and for this reason it has been proposed that the municipality of Triángulo Minero be declared "the first mercury-free mining town in Nicaragua" according to an article in Elnuevodiario.com.ni.
Falling gold prices in the international market are worrying the mining sector, but are not a reason to stop investing in the country.
In an interview in Laprensa.com.ni by Lucia Navas with Pablo Venturo, B2Gold's country manager, the official explains how the company's operations are in Nicaragua and their expectations for the future.
According to Venturo, recently there has been a significant drop in international prices, however, they are waiting to see what the trend will be over the next few months. "When we started operations in the country in April 2009 the price of gold was $850, since then there was an upward trend reaching its peak in 2011. In 2009 we started with major investments such as the acquisition of properties and the reconstruction of Mina La Libertad, which helped double production from forty thousand ounces a year to its current capacity of 130 thousand ounces. That was an investment of $74 million between 2009 and 2010. That investment has allowed us to maximize our revenue this year and leaves us ready and in a robust position to face a complex future. "
Transnational oil and mining companies are taking states to international arbitration where "they get money that they did not even invest."
So says Manuel Perez Rocha, coordinator of the Network for Justice in Global Investment in Washington, who explains that when a Latin American state suspends exploration or exploitation permits, multinationals always manage to extract profits from international courts, particularly the International Centre for Settlement of Investment Disputes (ICSID).
While the outlook is expected to improve at the international level, the mining industry in Nicaragua has announced that it is prepared to withstand the collapse of gold prices.
According to Pablo Venturo, B2Gold mining manager, the investments of about $400 million which have been implemented over the past four years has allowed them to be ready today for the collapse of gold prices in the international market.
After the purchase by the Colombian group Mineros SA, of 90% of the shares of Hemco, the private sector is confident that more will be invested in energy and agro-reforestation.
"We're talking about a sector that not only is backing mining, but also in energy, agro-reforestation, the cocoa sector and in the area of services through call centers," said Joseph Adam Aguerri Board Chairman of the Superior Council for Private Enterprise (COSEP).
Mineros SA has bought 90% of the shares of the Bonanza mine from the company Hemco, for an amount that has not been disclosed.
From a press release from Hemco in Nicaragua:
Mineros, S.A, the Colombian private business group with over 38 years experience in the mining sector has decided to invest in Nicaragua acquiring a 90% stake in Hemco Nicaragua S.A in Bonanza, in the North Atlantic Autonomous Region (RAAN).
An event in Canada will highlight the opening of the country for business, its pro-mines legal framework, partnerships between government and the private sector and investment opportunities in exploration and mining and non-mining activities.
From a statement from ProNicaragua:
Nicaragua presents this week mining opportunities at the PDAC conference
The Colombian mining company Mineros S.A. is discussing the possibility of investing in Nicaragua in both exploration and exploitation.
Without giving further details, the Colombian company Mineros S.A. announced that it is discussing the possibility of acquiring the shares of a company in Nicaragua.
Denis Lanzas, vice president of the Chamber of Mines of Nicaragua said company representatives from the Colombia company have already visited Nicaragua are still "exploring investment opportunities in both exploration and exploitation. We believe that they will let us know their investment decision at the appropriate time", he added.
Good prices on the international market and new mining investments could result in gold being the Nicaragua’s flagship product in 2013.
During 2012 110,000 ounces of gold were extracted, and in 2013 the figure could rise to 130,000 ounces.
The Nicaraguan Chamber of Mines (Caminic) announced that during 2013-2014 two new gold mining centers will open. Denis Lanzas, VP of Caminic said that in 2015 gold will be Nicaragua’s main export.
Prospecting, in which $4.5 million has been invested, has determined that the gold found in Santo Domingo, Nicaragua, is not sufficient for commercial exploitation.
The Canadian mining company Corazón Exploraciones ceased its operations in Nicaragua, "after determining that the site does not qualify for this activity, said the manager of the Canadian company, Bermúdez Enrique Alejo Amador."
The sector closed the first half of the year with a 20.5% increase in exports, compared to the same period of 2011.
Vice President of the Nicaraguan Chamber of Mines (Caminic), Dennis Spears, said that the boom being experienced by the sector will allow the opening, in the short term, of a new gold producing plant, "we are taking steps, we have areas where we will install and we have reflected that have a good site where it is worth putting a plant ... ".
Nicaragua participated in the Latin America Down Under Conference held in Sydney, Australia during May 22nd and 23rd, with the objective of promoting investment opportunities in the country’s growing mining sector
Presenting at the event was Javier Chamorro, Executive Director of PRONicaragua, the official investment promotion agency of Nicaragua.
“Foreign direct investment is now 13 percent of GDP, the highest rate in Latin America, so Australian mining entities coming into our market have a secure investment in an operational, geological and socially positive environment,” he stated, adding that “this is particularly so as our government has set the mining sector as a priority for our country’s development and Australia as a target partner.”
A new prosperity acquired by Nicaragua's economy, especially in infrastructure, is being reflected in extractive activities related to construction.
The boom experienced by the construction sector has led to the extraction of materials such as crushed stone, sand and other things for the manufacture of blocks, pavements, cement and other products required by public and private works.