By Entorno and AFP | 2025-08-05

The Nicaraguan government has granted a new mining concession to Chinese-backed firm Thomas Metal S.A., deepening Beijing's footprint in the Central American nation's extractive sector.

The announcement, published on July 29 in the official gazette La Gaceta, reveals that the company has secured rights to exploit both metallic and non-metallic minerals across 47,410 hectares in the southern Caribbean region.

This new license covers areas within the municipalities of El Castillo and Bluefields, spanning Río San Juan and the South Caribbean Coast Autonomous Region. The concession will last for 25 years, though the specific minerals involved were not disclosed.

Thomas Metal had already received a separate license in June to operate on 3,922 hectares elsewhere in Nicaragua's Caribbean region.

Growing Chinese influence

China's presence in Nicaragua's mining industry has grown significantly since 2021, when the dictator Daniel Ortega's administration severed ties with Taiwan in favor of diplomatic relations with Beijing.

Since then, at least five Chinese firms are reported to be actively mining gold in the country, according to exiled Nicaraguan media outlets.

At the end of July, another Chinese company, Nicaragua Xinxin Linze Mineria Group S.A., transferred its exploitation rights for 10,592 hectares in the departments of Chontales and Nueva Segovia to a new Chinese firm, Linze Excelente Minera.

In the same week, Xinxin was granted an additional 14,869 hectares for mining in the department of León and the South Caribbean Coast Autonomous Region.

Chinese companies have become increasingly influential in Nicaragua, not only in mining but across key sectors including infrastructure, transport, health, security and trade.

The deepening alliance with Beijing underscores Ortega's pivot toward China and its leader Xi Jinping, amid growing international isolation and domestic authoritarianism.