Calibre Mining Co. Merges with Equinox Gold Amid Growing…

Calibre Mining Co. has merged with Equinox Gold, forming New Equinox Gold, expected to produce significant gold outputs by 2025. The merger aligns with increasing gold prices and additional concessions awarded to Chinese firms in Nicaragua. Environmentalists raise concerns regarding the impact on indigenous communities and natural resources affected by these developments, emphasizing the need for careful management of mining activities.

Calibre Mining Co., a Canadian firm operating in Nicaragua, has confirmed a merger with fellow Canadian company Equinox Gold, leading to the formation of New Equinox Gold. This newly established entity aims to become the second-largest mining company in Canada based on combined investments. Calibre currently manages the El Limon and La Libertad mines in Nicaragua through its subsidiaries, maintaining existing operations under the Equinox Gold Corporation name.

The merger is projected to produce a combined total of 950,000 ounces of gold by 2025, excluding outputs from two mines under development anticipated to yield an additional 590,000 ounces. In an announcement on January 29, Darren Hall, President and CEO of Calibre, proudly noted the company’s achievement of producing its one millionth ounce of gold in Nicaragua since 2019, contributing to substantial gold export revenues totaling approximately US$1.354 billion in 2024 as reported by the Central Bank of Nicaragua.

An industry professional, speaking anonymously, stated that the merger would not alter day-to-day operations significantly, asserting, “It all continues to function normally.” Calibre’s gold production in Nicaragua was recorded at 242,109 ounces in 2023 but saw a decline of 34,889 ounces in 2024, as indicated in their financial report. Sales from both U.S. and Nicaraguan operations generated an income of approximately $574.4 million, with gold prices soaring to a notable $2,954.4 per ounce by February 24.

The rising gold prices are believed to have spurred the acceleration of mining concessions in Nicaragua, particularly benefiting Chinese mining companies. In a span of six months, thirteen new concessions were awarded, covering 11.66% of the land allocated for metallic mining, according to an analysis by Confidencial. Environmental concerns have emerged, particularly regarding the impact on indigenous communities from some of these concessions.

Environmentalist Amaru Ruiz, President of the confiscated Fundacion del Rio, described the cancellation of previous contracts as an effort to streamline territories for new concessions, calling the process “arbitrary” as he lamented the loss of rights for formerly awarded companies. He pointed out the challenges in confirming these claims due to potential repercussions faced by those affected.

Moreover, recent concessions awarded to Calibre and Zhong Fu Development Co. spurred alarm among environmentalists and indigenous leaders, who argue that these developments could exacerbate environmental degradation and increase territorial conflicts. The approvals led to the allocation of over 240,000 hectares, heightening fears of illegal land occupation by armed groups in indigenous areas.

Calibre Mining Co.’s merger with Equinox Gold represents a significant consolidation within the mining sector in Canada, positioning the newly formed entity for substantial gold production in the coming years. However, alongside this merger, there is growing concern regarding environmental impacts and indigenous rights related to new mining concessions, particularly those awarded to Chinese companies. The dynamics of Nicaragua’s mining landscape will require careful monitoring to balance economic benefits with social and environmental stewardship.

Original Source: havanatimes.org