Calibre Mining has merged with Equinox Gold to create Canada’s second largest mining company. They aim to produce 950,000 ounces of gold annually by 2025. The merger raises concerns about new mining concessions granted to Chinese firms and their impacts on indigenous communities and the environment.
Calibre Mining Co., a prominent Canadian mining company operating in Nicaragua, recently announced its merger with fellow Canadian entity Equinox Gold. This strategic alliance is poised to create the second largest mining organization in Canada based on their combined investments. Calibre oversees the El Limon and La Libertad mines in Nicaragua and will operate under the New Equinox Gold name, while still identified as Equinox Gold Corporation.
The merger is expected to enhance production, aiming to yield approximately 950,000 ounces of gold by 2025. Furthermore, two additional mines in development are anticipated to contribute an additional 590,000 ounces once they reach full operational capacity. Earlier this year, Calibre reported reaching a milestone of producing one million ounces of gold in Nicaragua since commencing operations in late 2019.
In 2024, gold exports from Nicaragua accumulated to $1.354 billion, reflecting the industry’s significance to the national economy. A source within the mining sector indicated that daily operational practices will remain unchanged following the merger, ensuring stability in extraction activities. Calibre’s production figures for 2023 were 242,109 ounces, which fell to 207,220 ounces in 2024, marking a decline of 14.4%.
The merger comes at a time when gold prices are soaring, leading to an increase in mining concessions awarded, particularly to Chinese companies. Concerns have been raised regarding the impact of these new concessions on indigenous communities and environmental sustainability. Between October 2023 and April 2024, thirteen mining concessions were allocated to Chinese firms, which represented a significant portion of Nicaragua’s mining territory.
Environmental advocates argue that these rapid concessions may endanger local ecosystems and indigenous territories. Amaru Ruiz, an exiled environmentalist, emphasized the arbitrary nature of rescinding prior concessions, which appears to facilitate the swift approval of new permits. Ruiz expressed concern over the risk of reprisals faced by those whose concessions were revoked, noting reluctance to report such issues openly.
Significant concessions were awarded rapidly in late July 2023, which raised alarms among environmentalists and indigenous leaders alike. Both groups contend that the new mining projects threaten their lands, further escalating tensions involving armed invasions of indigenous territories.
In summary, Calibre Mining’s merger with Equinox Gold marks a significant development within the mining sector in Nicaragua and Canada. This partnership is poised to boost gold production significantly while raising critical concerns regarding the environmental and social impacts of increased mining activities. The rapid allocation of new mining concessions, especially to foreign entities, poses risks to indigenous communities and local ecosystems, highlighting the need for responsible governance in the mining sector.
Original Source: havanatimes.org
