The mining companies' association estimates that in 2021 gold exports will be 13% higher than the value exported during 2020, explained in part by an increase in the volume extracted and the rise in the international price.
Gold exports in Nicaragua have been on the rise in recent years, mainly explained by increased activity in the sector, added to the upward trend that the price has followed in the international market.
Plantel Los Angeles, a mixed capital company operating in Chontales, Nicaragua, plans to invest $25 million in the construction of three new raw gold processing plants.
The company, which will invest in the new processing plants, caters exclusively to producers who are classified as artisanal miners. The announcement of these projects comes in the context of the increase in gold exports, since between January 2020 and the same month of 2021, Nicaraguan sales abroad went from $50.6 million to $60.8 million.
Condor Gold, a British company that for 14 years has carried out exploration work in the province of León, in Nicaragua, announced that in 2021 it will invest in the construction of a metal processing plant.
According to company executives, the new industrial plant to be located in the municipality of Santa Rosa del Penon, will have the capacity to process 1,500 tons per day and the company is expected to start exporting by 2022.
The country is going through an economic crisis that has hit most sectors, however, gold seems to be on the sidelines of the bad times, as in the first nine months of the year exports totaled $397 million, 26% more than in the same period in 2019.
Between January and September 2018 and the same period in 2019, foreign sales of gold in the country increased by $82 million, going from $315 million to $397 million, according to figures from the Center for Export Procedures (Cetrex).
Adverse court decisions against companies, social and political conflicts and fiscal issues are some of the factors that are impeding the development of productive projects in Central American countries.
One of the latest court decisions affecting companies with investments in the region was that of Minera Petaquilla, in Panama. The contract that this company had signed with the Panamanian State was declared unconstitutional last week.
Although the exports in this sector fell 9% during the past year, the union expects that in 2018 sales abroad could grow by 17%.
According to figures from the Central Bank of Nicaragua, sales abroad made by the mining sector totaled $338 million in 2017, which represents a reduction of 9% compared to the amount reported in 2016.
On August 16 and 17, 2018 companies in the international mining industry will be gathering together in Managua, to take part in business conferences and discuss issues related to the sector.
The event is being organized by the Mining Chamber of Nicaragua and is expected to involve mining companies from all of the countries in Central America, and Canada, the United States, Colombia, Australia, England and Argentina.
Next year the B2Gold mining company plans to produce around 118 thousand ounces of gold in the Tope and San Juan project, in the municipality of La Libertad.
Authorities at the mining company explained that in 2017 production was lower because they had not obtained all of the permits, but now, with the approval of the environmental impact studies, B2Gold plans to increase activities and consequently the extraction of gold.
Mining activities have grown at an annual average of 9% in the last ten years, mainly due to growing foreign investment, an increase in production and favorable international prices.
A report presented by the Nicaraguan Mining Chamber states that between 2006 and 2016, foreign direct investment totaled $793 million, having an annual average of $79 million.
In 2012 gold exports to Canada amounted to $377 million, equivalent to 54% of the total exported by the region that year, but four years later the figure has fallen to 0.
Figures of the information system on the Gold Market in Crude, Semi Wrought or Powder form in Central America, compiled by CentralAmericaData's Business Intelligence Unit: [GRAFICA caption = "Click to interact with the graph"]
The mining company Cóndor Gold is trying to put an end to the blockades that the local population have held in place for ten days at the La India mine in Nicaragua.
Exhausting all possible resources, the company Cóndor Gold is proposing a dialogue to the leaders of the group of local inhabitants who are protesting against the mining project in the municipality of Santa Rosa del Peñón.
Artisanal miners from the municipality of Santa Rosa del Peñón are preventing the entry of machinery into La India mine, where Condor Gold is carrying out exploration activities.
The Chamber of Ministers of Nicaragua (Caminic) issued a statement expressing concern about "the situation in La India mine, where some members of the community are preventing the right to work of the inhabitants who are collaborators of Condor Gold, a company that generates employment and carries out exploration work there."
Metallic and non-metallic mining projects granted in concession cover 8.4% of the country's land area, but less than 1% are in operation.
From a report by the Chamber of Mining:
Of each dollar generated from metallic mining,0.66 cents remain in Nicaraguain the form of payments for taxes, remuneration and acquisition of local goods and services. This is one of the main conclusions of the study entitled 'Analysis of mining activity in Nicaragua 2006-2016',prepared by the economist Néstor Avendaño, president of Consultores para el Desarrollo Empresarial S.A. (COPADES).
This year's projections are for production of 276 thousand troy ounces of gold and 689 thousand silver, and it is expected that $355 million will be generated in export earnings.
The mining companies' association predicts that private investment this year will range from $125 million to $140 million.Sergio Ríos, president of the Mining Chamber of Nicaragua (Caminic),"... recently stated that 'gold production in 2016 amounted to 267,000 troy ounces' and that since 2011 the production of precious metal has grown at a annual average rate of 9.3%'."
From July 26 to 28, companies from the sector will be gathering together in Tegucigalpa to take part in business roundtables and conferences on sustainable mining, water and climate change.
The III edition of the international congress will be held in Tegucigalpa.
The thematic axes of the event are: geological and geophysical explorations, mining processes, software and technological advances, sustainable mining, water, climate change and extractive industries.