Nicaragua grants 25-year gold mining concession to US-sanctioned miner's sister firm
SCMP · 1 SOURCESabout 2 hours ago2 MIN
Summary
Nicaragua has granted a Chinese-owned company the right to prospect and dig for gold across 262 square kilometres of rainforest to a firm linked to one already sanctioned by the United States, according to corporate filings and government records. The 25-year concession over a block named Jade went to Linze Excelente Mineria, a company that appeared in Nicaragua's mining registry only last year. The block is located in a corner of the country where prospectors first struck gold in 1880. Corporate filings list Lijun Dong as legal representative of both Linze Excelente and Nicaragua Xinxin Linze Mineria Group, a firm the United States blacklisted in April. Shiliang Yang, who signed the Jade title, also appears as a lawyer for the sanctioned company. The US Treasury sanctioned Xinxin Linze in April, saying it had received tens of thousands of acres from the Nicaraguan government and shipped more than US$25 million in gold to the United States in the first half of 2025. Because Linze Excelente carries no designation of its own, American banks may still process its payments and refineries may still buy its metal.
Key Points
- Linze Excelente Mineria received a 25-year gold concession covering 262 sq km of rainforest in Nicaragua
- Lijun Dong serves as legal representative for both Linze Excelente and US-blacklisted Xinxin Linze
- The US Treasury sanctioned Xinxin Linze in April for shipping over US$25 million in gold to the US in early 2025
- Nicaragua broke off ties with Taiwan in 2021 and signed a free-trade agreement with China in 2024
- Washington targets mining companies rather than the gold trade itself since American buyers take most of the metal
Why It Matters
The concession underscores how Nicaragua under Daniel Ortega and Rosario Murillo has pivoted toward Beijing after Washington sanctioned their family business network following a 2018 crackdown that killed hundreds of protesters. Because Linze Excelente lacks its own US designation, American financial institutions may continue processing its transactions despite the Treasury's sanctions on its affiliated company, creating a potential loophole in enforcement .
The concession underscores how Nicaragua under Daniel Ortega and Rosario Murillo has pivoted toward Beijing after Washington sanctioned their family business network following a 2018 crackdown that killed hundreds of protesters. Because Linze Excelente lacks its own US designation, American financial institutions may continue processing its transactions despite the Treasury's sanctions on its affiliated company, creating a potential loophole in enforcement .