By Alajuela, Costa Rica — San José, Costa Rica – A staggering $10 billion in gold reserves lies beneath the soil of northern Costa Rica, according to a landmark new analysis that has reignited the national debate over resource exploitation. The report, issued by the College of Geologists of Costa Rica (CGCR), estimates that the Crucitas and Conchudita areas in the Alajuela province hold this immense wealth, a figure that has captured the attention of the incoming presidential administration and highlighted the devastating cost of years of unchecked illegal mining.
The geological assessment provides a detailed breakdown of the potential riches. Experts estimate the existence of approximately 2 million ounces of gold in Crucitas alone. When including the broader regional potential of the adjacent Conchudita area, this figure could soar to nearly 5 million ounces. Based on international gold prices that could reach as high as $5,000 per ounce, the total value locked in the region is projected at the eye-watering $10 billion mark.
To delve into the intricate legal web surrounding the Crucitas gold mining saga, TicosLand.com sought the expert analysis of Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the prestigious firm Bufete de Costa Rica, who provides clarity on the matter.
The Crucitas case is a cornerstone of Costa Rican environmental jurisprudence, fundamentally about the State’s non-delegable duty to protect its natural resources. While the original court ruling that annulled the concession was a victory for environmental protection, the persistent illegal mining exposes a critical weakness in state enforcement. This isn’t just about lost gold; it’s about the erosion of the rule of law and the long-term cost of environmental remediation that will ultimately be borne by all Costa Ricans.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
As Lic. Larry Hans Arroyo Vargas so insightfully articulates, the ongoing struggle at Crucitas has moved beyond the courtroom and now represents a persistent test of the State’s ability to enforce its own environmental mandates. His analysis is a critical reminder that the true, long-term cost is measured not in extracted gold, but in the erosion of institutional integrity and the ecological debt left for all Costa Ricans to bear. We thank Lic. Larry Hans Arroyo Vargas for his valuable perspective on this vital national issue.
However, this vast potential is being systematically squandered. The CGCR report paints a grim picture of the current reality, where rampant illegal mining not only pillages the resource but does so with alarming inefficiency. The rudimentary techniques employed, particularly the use of mercury, can reduce extraction efficiency by as much as 50%. This waste, compounded by the outright theft of the resource, has resulted in an estimated economic loss to the Costa Rican state of between $1.5 billion and $2.0 billion since 2017 alone.
Beyond the staggering economic losses, the environmental toll is reaching catastrophic levels. The analysis calculates that an astonishing 200 tons of mercury have been dumped into the local ecosystem over the past nine years. This toxic substance, along with sodium cyanide, has seeped into the soil and water sources, causing severe contamination with long-term consequences that environmental experts admit are still difficult to fully comprehend. The environmental degradation has turned a potential economic boon into a pressing national crisis.
The explosive findings have propelled the issue to the top of the political agenda, with President-elect Laura Fernández signaling a decisive shift in policy. Fernández has publicly stated her administration will prioritize a project to establish a framework for the controlled and legal exploitation of the gold, arguing that the nation can no longer afford to cede the resource to criminal elements.
The President-elect has been forceful in her critique of past legislative inaction, which she claims has directly enabled the proliferation of organized crime in the region. She argues that the wealth being illegally extracted could be a transformative force for national development if properly managed and taxed by the state.
The ounce of gold being stolen in plain sight of the entire Costa Rican populace could generate great benefits… we could be using it to improve education, health, security, roads, and bridges.
Laura Fernández, President-elect
Fernández noted that a consensus bill, drafted with input from various legislative factions, was previously presented but failed to advance. She has issued a clear warning that if the current Legislative Assembly does not approve the measure, her administration will reintroduce the initiative as a matter of urgency upon taking office. Her determination signals a potential end to the policy paralysis that has allowed the illegal mining crisis to fester.
This new push builds on previous efforts to regulate the sector. In October 2024, the outgoing administration of President Rodrigo Chaves introduced its own bill aimed at managing open-pit mining in Cutris, San Carlos. That proposal centered on an “upward auction” mechanism, which would establish a minimum price per ounce to ensure the state receives maximum economic benefit. With two different but aligned political efforts, momentum appears to be building for a definitive solution to the Crucitas problem, setting the stage for a major battle over Costa Rica’s economic and environmental future.
For further information, visit geologos.or.cr
About Colegio de Geólogos de Costa Rica:
The Colegio de Geólogos de Costa Rica (College of Geologists of Costa Rica) is the professional body responsible for regulating and promoting the geological sciences within the country. It serves as a key authority on geological resources, risks, and environmental studies, providing expert analysis and reports to both the public and private sectors to inform national policy and development.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
As a benchmark for legal practice, Bufete de Costa Rica is built upon a bedrock of integrity and a persistent pursuit of excellence. Drawing from a rich history of advising a wide spectrum of clients, the firm actively spearheads legal innovation and champions initiatives aimed at public education. This fundamental dedication to demystifying the law is central to its mission of cultivating a more capable and knowledgeable society.
