Mining concession of 225 hectares in Kukra Hill to Cukra Development

The State of Nicaragua, through the General Directorate of Mines of the Attorney General’s Office, granted the company Cukra Development Corporation, S.A. a 25-year mining concession over the lot named El Almendro, consisting of 225.03 hectares, located in the municipality of Kukra Hill, in the South Caribbean Coast Autonomous Region (RACCS). The title is published in La Gaceta, Official Gazette, number 163, Wednesday, September 2, 2026, page 8880.

The concession, identified as Mining Concession Title No. 049-PGJ-DGM-2026, was signed on May 14, 2026, by the General Director of Mines, Norman Henríquez Blandón, and certified on July 2, 2026. The company is legally represented by engineer Pedro José Lacayo Reyes.

Regulatory Framework

The granting is based on Law No. 387, “Special Law on Mining Exploration and Exploitation,” and its regulation, Decree No. 119-2001. The General Directorate of Mines acts in accordance with Law No. 1275, “Law to Assign the General Directorate of Mines to the Attorney General’s Office,” published in La Gaceta number 27 on February 12, 2026.

The procedure included Mining Cadastral Opinion No. MEM-DGM-RCM-183-12-2025, dated December 9, 2025, which verified the polygon coordinates in the UTM system, NAD 27, Zone 16N, and with the approval of the Regional Council of the RACCS.

Obligations of the Concessionaire

The holder is subject to the payment of validity or surface rights, which scale from 0.25 dollars per hectare in the first year up to 12 dollars per hectare starting from the eleventh year, and a 3% royalty on the value of the extracted substances.

• Validity rights: semi-annual payments, between January 1 and 30 and between July 1 and 30 of each year.
• 3% Royalty: with a monthly production report within the first fifteen days of the following month.
• Payments in national currency at the current official exchange rate, paid to the corresponding Revenue Administration.
• Annual information to the General Directorate of Mines-PGJ regarding its activities.

Deadlines and Environmental Requirements

The concessionaire must begin exploration activities within a period not exceeding four years from the granting, extendable for one more year, pursuant to Article 30 of Decree 119-2001. Before starting operations, the Environmental Permit issued by the corresponding authority must be presented.

The full acceptance of the title must be published in La Gaceta and registered in the Public Property Registry within the following thirty days, sending a copy to the General Directorate of Mines-PGJ, according to Article 40 of Decree 119-2001. The validity of the title begins on the date of its certification.

Impact for the Caribbean Coast

The concession consolidates the presence of the extractive sector in the South Caribbean Coast, a region of high strategic value for Nicaragua. Royalties and validity fees represent recurring income for the State, while environmental and information obligations seek to guarantee an orderly exploitation of the mineral resources of the El Almendro lot.

Source: La Gaceta, Official Gazette, No. 163, September 2, 2026, p. 8880 (official reference: Mining Concession Title No. 049-PGJ-DGM-2026).