Calibre Mining Co. merges with Equinox Gold to form New Equinox Gold, the second-largest mining company in Canada, projected to produce 950,000 ounces of gold by 2025. The merger occurs amid rising gold prices and increasing concessions awarded to Chinese firms, sparking environmental and indigenous rights concerns.
Calibre Mining Co., a major player in Nicaragua’s mining sector, has announced a merger with Equinox Gold, another Canadian company. This merger will result in the formation of New Equinox Gold, making it the second-largest mining firm in Canada based on their joint investments. Calibre operates the El Limon and La Libertad mines in Nicaragua, while the new entity will maintain the Equinox Gold Corporation name.
The merger is expected to boost gold production significantly, with projections estimating a combined output of 950,000 ounces by 2025. Additionally, two new mines in development are anticipated to generate an additional 590,000 ounces. Calibre’s president, Darren Hall, celebrated a milestone of producing one million ounces of gold since the company’s operations began in 2019.
In 2024, gold exports yielded substantial revenue of $1.354 billion in Nicaragua. Despite a slight decline in production from 242,109 ounces in 2023 to 207,220 ounces in 2024, Calibre’s overall activities continue to be profitable, aided by rising gold prices, which reached a remarkable $2,954.40 per ounce recently.
Moreover, there is a growing trend of new mining concessions being granted to Chinese firms in Nicaragua. Following the spike in gold prices, authorities have awarded multiple concessions, signifying a strategic shift. Environmental activists have raised concerns regarding the impact of these concessions, particularly on indigenous communities.
Between October 2023 and April 2024, thirteen mining concessions were granted to Chinese companies, accounting for 11.66% of the total metal mining area in Nicaragua. Environmentalists such as Amaru Ruiz express concerns about the rapid awarding of concessions and the cancellation of existing contracts, labeling it a process of arbitrary dispossession of rights from previous companies in favor of new entrants.
The merger between Calibre Mining and Equinox Gold represents a significant consolidation within the mining industry, poised to enhance gold production and revenues. However, the ongoing allocation of mining concessions to foreign companies, particularly those from China, raises critical concerns about environmental degradation and the rights of indigenous communities. It is essential to scrutinize these developments to balance economic interests with social and environmental responsibilities.
Original Source: havanatimes.org
