US measures target Nicaragua gold sector

The US government is targeting Nicaragua’s gold mining industry in new measures aimed at ramping up pressure on President Daniel Ortega’s authoritarian regime.

The treasury department announced new sanctions on Nicaragua’s directorate of mines, while President Joe Biden signed an executive order giving the treasury the authority to target US companies and individuals that operate or have operated in the Central American nation’s gold sector.

The order also provides expanded sanctioning powers that could be used to ban new US investments in key industries.

“Ortega and his cronies continue to use proceeds derived from the production and sale of gold to line their own pockets and to pay off those who keep the regime in power,” the treasury department said in a release.

President Ortega (in photo) secured a fourth consecutive term following elections last November, which Western nations denounced as unfair, with opposition leaders jailed or forced to flee the country.

The US imposed sanctions on Nicaraguan state gold mining company ENIMINAS in June over concerns the government is using revenue from the precious metal to oppress its people.

Gold was Nicaragua’s second highest export behind coffee in January-July at US$561mn, compared to US$877mn in full-year 2021.

Gold mining companies active in the country include Vancouver-based firms Calibre Mining, which operates the Libertad and Limón mines and satellite deposits, and Mako Mining with the San Albino mine.

Colombia's Mineros also has the Hemco Nicaragua operations, while London-based Condor Gold is advancing its La India gold project toward production.