Nicaragua has handed mining concessions covering more than a tenth of its land to Chinese companies in the past three years, expanding Beijing’s foothold in the gold-rich country as it tussles with Washington for influence. The Central American autocracy has awarded 80 concessions that together cover land roughly the size of Northern Ireland to Chinese miners since 2023, according to FT analysis of government data. The concessions deepen China’s relationship with its closest partner in the region at a time when the US is expanding its reach into overseas mining and claiming dominance of the western hemisphere under the so-called 'Donroe Doctrine'.

For Nicaraguan dictator Daniel Ortega, the mining concessions are part of projects designed to curry favour with Beijing, which include ports on its Pacific and Atlantic coasts and a major airport redevelopment. While individuals in Ortega’s regime have been under US sanctions since 2017, China says its partnership with Nicaragua has enjoyed 'tremendous development' since they re-established bilateral relations in 2021. Meanwhile Nicaragua has received more than $1bn in Chinese financing for infrastructure, energy and telecoms projects.

Since 2023, 16 Chinese companies, mostly small and medium-sized, have won more new concessions than all other miners combined, according to Nicaraguan state data. The licences cover exploration and development of 1.4mn hectares, equivalent to 11 per cent of the country. Nicaraguan non-profits say they are concerned about Chinese miners’ reputation for low environmental standards, particularly since Ortega has also gutted his country’s protections.