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.
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.
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%'."
The Assembly is preparing to approve a bill that creates the Nicaraguan Mining Company (Empresa Nicaragüense de Minas), which will be able to participate in exploration and exploitation activities carried out by companies who have received concessions.
In addition to the possibility of participating directly in activities carried out by concessionaire companies, once the law is approved, the Nicaraguan Mining Company (ENIMINAS), "...
In the first four months, gold sales abroad generated $110 million, an increase of 8% compared to the same period in 2016.
The mining companies' association attributes the good results achieved between January and April to stability in the international price of gold and an increase in production.Sergio Ríos, president of the Nicaraguan Chamber of Mining (Caminic), pointed out thatat the end of last April the price of gold remained at an average of US $1,255 per troy ounce.
The union of mining companies is promoting the arrival of new foreign investments in order to achieve greater development and formalization of metal mining in the country.
The president of the Mining Chamber of Nicaragua (Caminic), Sergio Rios, presented to foreign businessmen the characteristics and conditions offered by the country's for mining investments and invited them to invest in the country and take advantage of its geological potential.
The union anticipates a positive year for the international price of gold, whose exports generated $357 million between January and November 2016, 12% more than in the previous year.
The stability of the international price of gold in 2016 was the main reason behind the good results achieved by the sector dedicated to metal mining in Nicaragua. Gold exports exceeded $357 million, according to data at CETREX and better results are projected for this year.
The arrival of foreign investment to the west of the country is being promoted, in places where there are already companies interested in developing the potential for metal mining in the area.
The Mining Chamber of Nicaragua projects growth of 5% in exports this year compared to 2015, driven by a rebound in gold prices internationally and investments in the sector.Sergio Rios, director of the union, also attributed the positive growth projection to the approximate 5% achieved in production.
Up to 150 tons per day of materials extracted from artisanal mines will be processed by the new plant, which is the result of an agreement between the State and the private sector.
The Mining Chamber of Nicaragua explained that the plant will operate under the"Mining for All"program, agreed between the business sector and the Nicaraguan government, in order to cater exclusively to artisanal workers.
Mining companies anticipate good results for 2016, not only because of the expected improvement in international prices but also due to the dynamism of local construction.
Non-metallic mining is the category, in the view of representatives of the sector, which achieved the best performance this year because of the construction boom in the country, which is demanding ever more limestone, sand and other essential materials used for building.
The new federation is made up of chambers and associations, and suppliers of goods, services and consultancy services in countries in the region and the Dominican Republic.
From a statement issued by the Chamber of Mining in Nicaragua:
Representatives from the organizations that make up the Mining Federation of Central American and the Caribbean (FMCC), elected Mr. Sergio Rios, as president of the Mining Chamber of Nicaragua.
Low gold prices and weaker external demand account for 14% of the annual fall in the export of metal products for March.
In the first quarter of 20,700 ounces of gold were exported, down from the 73,800 ounces sold in the same period in the previous year. The main reason behind this decrease is the fall is the international price of gold, which has remained low over the past year and part of this year.
Conflicts over environmental protection and excessive bureaucracy in the process of granting concessions are the factors that limit the great mining potential in the region.
The mining sector in Central America represents great potential for investment and business, however, it has so far contributed only 0.75% to the Gross Domestic Product (GDP), averaged from the six countries in the region, between 2008 and 2012.
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