Calibre Mining Co. is merging with Equinox Gold to create New Equinox Gold, the second largest mining company in Canada. This merger aims to boost gold production to 950,000 ounces by 2025. Concerns are being raised regarding the surge in mining concessions granted to Chinese firms and the impact on indigenous communities and the environment.
Calibre Mining Co., a Canadian mining company operating in Nicaragua, has confirmed its merger with Equinox Gold, another Canadian entity. This partnership will form the second largest mining company in Canada, bolstered by their joint investments. Calibre operates the El Limón and La Libertad mines through its subsidiaries, and the merged company will be referred to as New Equinox Gold while continuing to function under the name Equinox Gold Corporation.
Headquartered in Vancouver, British Columbia, the merger is projected to yield a combined production of 950,000 ounces of gold by 2025 from their existing operations and two additional mines under development, which could produce an extra 590,000 ounces. In January 2023, Darren Hall, Calibre’s CEO, celebrated the achievement of one million ounces of gold produced in Nicaragua since their operations commenced in 2019.
Calibre’s gold exports generated substantial revenues of $1.354 billion in 2024, according to the Central Bank of Nicaragua. An industry expert commenting on the merger indicated that it would not disrupt daily operations within the office or mining zones, assuring that everything will proceed as usual.
In 2023, Calibre produced 242,109 ounces of gold, which decreased by 14.4% to 207,220 ounces in 2024. The combination of gold extracted from their Nevada and Nicaragua mines resulted in sales generating $574.4 million, reflecting an average market price of $2,369 per ounce of gold.
The surging price of gold has led to a surge in mining concessions in Nicaragua, particularly benefiting Chinese firms. Recent developments have seen cancellations of earlier mining contracts, which often leave indigenous communities vulnerable. Activists are raising concerns over the impact these concessions may have on the environment and local populations.
From October 2023 to April 2024, thirteen mining concessions were allocated to three Chinese companies, covering approximately 11.66% of the metallic mining area in Nicaragua. Amaru Ruiz, an exiled environmentalist, voiced concerns over the arbitrary nature of these concessions and the resultant rights undermined for previous holders. He suggested this was part of a larger scheme to clean up territories for new mining interests.
The haste with which new concessions are being granted has sparked alarm, especially among environmental advocates and indigenous groups. In July 2023, councils in Nicaragua’s Caribbean regions fast-tracked a series of concessions over 240,000 hectares to Calibre Mining and Zhong Fu Development Co. Such initiatives threaten both the environment and the rights of indigenous communities, intensifying fears of armed encroachment into their lands.
The merger between Calibre Mining and Equinox Gold marks a significant development in the Canadian mining landscape, positioning the newly formed New Equinox Gold as a major player. While the merger is poised to increase gold production and generate substantial revenues, there is mounting concern about the implications of new mining concessions, particularly relating to environmental impacts and the rights of indigenous communities. The swift allocation of mining rights, especially to Chinese companies, raises ethical questions and highlights the need for responsible governance in resource management.
Original Source: havanatimes.org
