political risk2 May 2021 23:32
: What is the situation for miners in Nicaragua?
Thomas: The mining sector has been doing really well since the political crisis started in 2018, and you don’t see that in the rest of the economic sectors.
Since President Daniel Ortega took office he has been open to mining and investment in the sector, and we don’t think that is going to change anytime soon.
On the contrary, now that the country is facing a more severe economic slowdown he is probably going to continue relying on mining for pushing economic activity.
That’s a very good thing for the sector. It’s a priority for the government, so they can actually operate, but at the same time the political environment as a whole continues to be very challenging, and there’s no sign it will improve.
Authoritarian proclivities of the government continue to increase and the repression of the opposition and civil society continue to be issues of concern.
At this moment we haven’t seen significant changes put forward by the government to change its stance toward the sector.
BNamericas: Is there a risk of further protests?
Thomas: Civil society has been refraining from protests for the past year, since the pandemic started, but now given that we have the pandemic and elections coming in November, protests could become an issue again, maybe when we get closer to the election date, especially as the government hasn’t promoted electoral reforms.
On the contrary, efforts to repress civil society continue and have grown in recent months.
BNamericas: What is the situation regarding community relations for mining companies in Nicaragua?
Thomas: There is some degree of community activism in Nicaragua, with the difference that the government tends to repress it very violently.
It doesn’t always make it to the news, as the media is very restricted, but it is something that as a company you cannot rule out either.
This is a Central American issue. You will find it in Guatemala, Honduras and Panama. The difference is that the government’s approach to it in Nicaragua might be more hard line.
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