According to a Nicaraguan newspaper, due to lucrative gold mining contracts with the communist government, five Chinese gold mining companies, which are under U.S. sanctions, now manage 6 percent of Nicaragua’s total land.
Nicaragua’s governing regime, led by Daniel Ortega and Rosario Murillo, has established long-term gold mining agreements with at least 15 Chinese firms, effectively giving control of the nation’s gold resources to China. Reports indicate that these companies now oversee more than 1.013 hectares, which translates to around 8.5 percent of Nicaragua’s land area, with the sanctioned companies controlling 6 percent of that.
The analysis from the newspaper noted that between 2023 and February 2026, the Ortega government formalized 52 mining lease agreements with four Chinese companies that are on the U.S. sanctions list. Additionally, one of these companies has been operating in Nicaragua since 2019. These agreements are part of a wider set of favorable policies towards China that Ortega adopted after severing ties with Taiwan in December 2021 and fully aligning with China’s regime shortly thereafter, which included joining China’s Belt and Road Initiative.
One identified company is Grupo Minero Xiloá, also known as Grumixsa. This firm, sanctioned by the U.S. government in mid-April due to its links with the Ortega family, has been highlighted as one benefiting from the government’s favor, despite its limited experience in the area. It’s also reportedly central to the regime’s structure that extorts local miners. The Nicaraguan Attorney General’s Office indicated that the Ortega government made $1.961 billion from gold exports in 2025.
The U.S. Department of the Treasury described Grumixsa as part of a complicated network designed to generate foreign currency, launder sanctioned assets, and reinforce political power for the Ortega regime. The U.S. previously sanctioned Grumixsa along with other companies like Thomas Metals and Brother Metals in April.
Furthermore, it’s reported that the Ortega administration is using mining leases to dodge U.S. sanctions tied to regime-linked firms, such as Cominza, sanctioned in 2024. Initially, Cominza received a large lease, but it was soon transferred to another Chinese firm, which then passed it to Tutuwaka Mining Company.
Nicaraguan biologist and activist Amar Ruiz, a long-time critic of how the Ortega government allocates mineral resources to China, commented on the concerning nature of these transactions. He noted that these leases are being exchanged under dubious circumstances and raised alarms about potential environmental hazards associated with Chinese mining practices, citing insufficient protection measures. There’s considerable collaboration between the Nicaraguan regime and Chinese companies, which obscures the environmental impact assessments that are supposed to be conducted.
“Mining activities are linked to various environmental issues, from pollution to habitat destruction,” Ruiz emphasized. He pointed out the uncertainty surrounding the mining methods to be deployed, stressing that without environmental impact studies, the risks remain elevated.
Jason Pobrete, a U.S. attorney and former congressional advisor, argued that the findings support the need for U.S. sanctions against Nicaragua’s mining industry. He remarked that the Ortega government exploits the gold mining sector to finance its operations, and when companies face sanctions, they tend to shift their assets to new corporate identities that serve the same function.
Pobrete concluded that unless the U.S. addresses the fundamental issue of territorial concessions as a punishable offense, policy responses will lag behind the Ortega government’s activities.
