US-Nicaragua tensions over mining and property rights

The United States has condemned the Ortega-Murillo administration in Nicaragua for seizing luxury properties belonging to American citizens and investors. U.S. Assistant Secretary of State for Western Hemisphere Affairs, Juan Pablo Segura, labeled the confiscation of nine luxury homes in Tola, Rivas, as “unacceptable,” noting the properties were transferred to the Nicaraguan Social Security Institute without prior notification.

Concurrently, reports from the U.S. Embassy in Costa Rica indicate that Chinese mining companies in Nicaragua are allegedly engaging in abusive practices against artisanal miners, including forcing them to sell gold below market rates. This coercion has reportedly driven miners to cross into Costa Rica to engage in illegal gold mining, increasing irregular migration and pressure on the northern Costa Rican border. Investigations indicate the Nicaraguan government has granted approximately 85 mining concessions to Chinese firms, covering roughly 10% of the country's territory.

Recent data indicates a significant escalation in illegal mining activities within Costa Rica. The surface area affected by illegal mining grew by over 230% during 2025, expanding from 900 to more than 3,000 hectares. Authorities report that clandestine extraction and smuggling toward Nicaragua are causing severe environmental damage and an estimated annual economic loss exceeding $250 million.

China has rejected these accusations, with the Chinese Embassy in Nicaragua stating that the claims “lack factual basis” and asserting that Chinese companies do not operate near the Nicaragua-Costa Rica border. Beijing further argued that the focus on Chinese firms is a “double standard” intended to discredit cooperation between China and Nicaragua, noting that most mining companies in the country are funded by North and Latin American capital. The Nicaraguan government has expressed support for China’s position.