GNV News March 23, 2026

Along the Costa Rica–Nicaragua border, the area affected by illegal gold mining has expanded to more than 3,000 hectares, driven by soaring gold prices. In Crucitas, where the mining boom began, development rights were granted to a Canadian mining company 20 years ago, but that decision was overturned in 2011. Since then, with its legal status unresolved, the area has effectively become a lawless zone, and police deployment has remained inadequate. While gold mining used to be small-scale and manual, it has now transformed into semi-industrial exploitation involving organized crime. Deforestation caused by mining and severe water pollution from cyanide and mercury used in gold refining are shrinking wildlife habitats.

Behind this illegal trade is a smuggling route in which gold extracted on the Costa Rican side is transported across the San Juan River to Nicaragua, where it is refined and sold, according to reports. It is said that 90% of the miners in Crucitas, Costa Rica, are Nicaraguan, and it is estimated that mineral resources worth more than US$250 million are being plundered annually from Costa Rica. In particular, Chinese companies based in Nicaragua that have obtained mining concessions from the Nicaraguan government are reportedly purchasing Costa Rica’s “illegal gold” without verifying its origin. The two countries, which have a history of border disputes, are also locked in a geopolitical confrontation—Costa Rica’s government being pro-U.S. and Nicaragua’s government being pro-China—making it even more difficult to resolve the issue. The Chinese embassy, for its part, has denied the allegations, calling them political propaganda by the pro-U.S. administration.

On February 28, 2026, the Costa Rican and Nicaraguan governments agreed on a framework for cooperation, including joint patrols and the establishment of bases for information sharing. However, some argue that the problem cannot be solved unless the Nicaraguan government actively cracks down on these illegal camps and opaque transactions.

Within the Rodrigo Chaves administration in Costa Rica, there are moves to legalize mining, entrust management to foreign companies, and channel part of the profits into the national treasury in an effort to restore order, curb illegal mining, and contribute to regional development. However, opposition parties and environmental groups are strongly resisting, arguing that this would lead to environmental destruction and the continued illegal mining of gold.

Learn more about illegal gold mining in Latin America → “Peru: Illegal Gold Mining with Global Repercussions”

Learn more about Nicaragua and the rule of law → “Is the State Upholding the ‘Rule of Law’?”

An artificial pond used for chemical washing in illegal gold mining in Crucitas (Photo: Julieth Méndez / Wikimedia Commons [CC BY-SA 4.0]