Central America and the Caribbean: A new horizon for mining Tom Azzopardi is a freelance journalist based in Santiago, Chile. He has written for a range of publications, including AP, Bloomberg Law, Daily Mail, The Economist, Mining Journal, The Northern Miner, and The Times.
S
tretching out between Mexico and South America, the seven nations of Central America and the islands of the Caribbean Sea represent a new frontier for the mining industry in its search for the minerals the world needs. While not as well developed as jurisdictions to the north and south, the region has a centuriesold tradition of mining and is already home to some of the world’s largest metallic mining operations. Decades of political instability and dictatorship mean much of the region has not been explored using modern mineral exploration techniques suggesting there is still significant discoveries waiting to be found. But the launch of First Quantum Minerals’ Cobre Panama copper mine in 2020 has once again highlighted the region’s potential to the world. The US$6.2 billion project is the largest foreign investment in the region’s history. Designed to produce 350,000 tonnes
4 | Focus On Central America & the Caribbean
copper annually, the project has overnight turned Panama into a significant copper producer, bolstering government revenues and stimulating economic activity. As investors grow more interested in the critical minerals which will play a key role in the world’s transition to clean energy, the region can offer some of the world’s largest reserves of cobalt and nickel. Mining companies in Cuba, the Dominican Republic, and Guatemala are all seeking to boost production of these metals to meet growing demand from battery producers. But gold is the main draw. Mined here since pre-Colombian times, it was the mines on the island of Hispaniola – today the Dominican Republic – which convinced the Spanish conquistadores to push further into the continent in search of precious metals. Today the island is home to the giant Pueblo Viejo gold mine (owned by Barrick Gold and Newmont
