Legal Security for Mining Investors in Nicaragua: Key Strategies to Protect Your Investment
Nicaragua has established itself as one of the most attractive destinations in Central America for mining investment. However, operating in this sector requires more than capital and technical expertise—it demands legal security for investors, full regulatory compliance, and specialized legal guidance.
At Cala Lawyers, we are specialists in mining law, and we share the key aspects every investor should understand before committing resources to mining projects in Nicaragua.
Currently, Nicaragua has a comprehensive legal framework governing mining activities, providing investors with all the necessary tools to develop their projects within the country. Among the most important laws are:
Law No. 387 – Special Law on Mining Exploration and Exploitation, which establishes the State’s ownership over all mineral resources found in the soil and subsoil of the national territory. It also provides that exploration and exploitation activities are to be granted through concessions issued by the Ministry of Energy and Mines (MEM). This law was reformed in 2022 to regulate artisanal and small-scale mining, ensuring the protection of both sector workers and the environment.
Law No. 953 – Law Creating the Nicaraguan Mining Company (ENIMINAS), which designates ENIMINAS as the state entity responsible for the administration and exploitation of mineral resources, with the authority to grant concessions and enter into joint ventures with private entities.
In addition, Nicaragua offers a range of fiscal incentives for foreign investors in the mining sector, including:
- Exemption from Income Tax (IR) and Value Added Tax (VAT) on related goods and services.
- Exemption from Import Duties (DAI) on machinery and equipment.
- Exemption from Selective Consumption Tax (ISC) on inputs and materials.
- Improved access to financing from local banks and guaranteed legal security.
At CALA, we ensure that our mining sector clients secure the legal safety of their investments through the following measures:
- Preliminary Legal Evaluation:
- Verification of the mining concession’s validity and legal registration.
- Review of land-use restrictions and third-party rights.
- Assessment of compliance with environmental and social regulations.
- Solid Contractual Structure: Drafting of concession contracts and agreements with suppliers or local communities.
- Environmental and Social Compliance: Environmental Impact Assessments, community consultations, and sustainability programs to mitigate impacts.
- Conflict Prevention: Regulatory monitoring, conflict resolution strategies, and arbitration preparedness when necessary.
Our firm operates throughout the Central American region and has over 15 years of experience advising both domestic and foreign investors. We specialize in Mining Rights, Concessions, and Legal Security, as well as comprehensive permit management, regulatory compliance, and arbitration, ensuring our clients’ peace of mind and investment protection.
In conclusion, investing in the Nicaraguan mining sector offers unique opportunities but also significant legal challenges. Legal security is the cornerstone of any successful project. Having a specialized legal team from planning to operation is what makes the difference between a safe investment and an unnecessary risk.
At Cala Lawyers, we are ready to support you through every stage of your mining project, protecting your investment and ensuring regulatory compliance, stability, and confidence.
📞 Contact us today and secure the legal protection your mining investment in Nicaragua deserves.