Case Study: Transfer of Finca Miranda from MLR Forestal to Mayangna Sauni Arungka (Matumbak) Territory

The return or transfer of land from a company to a community has the potential to bring about positive outcomes for all parties. But this practice—also known as land divestment or land relinquishment—may present risks to the communities that would stand to benefit, including elite capture, increased land conflicts, and the loss of economic benefits from the cessation of a company’s operations on the returned land. A responsible land transfer process, built on robust community consultation and consent, can help mitigate these risks and ensure that communities are able to participate in decisions that result in a positive outcome for both the community and company.

This case study describes the successful transfer of land from MLR Forestal de Nicaragua S.A. (MLR), an agroforestry company operating in northeastern Nicaragua, to the Mayangna Indigenous communities of the Mayangna Sauni Arungka (Matumbak) Territory, through a multi-year free, prior, and informed consent (FPIC) process. The findings confirm the importance of a robust consultation and consent process to address risks associated with land transfer, while illuminating the challenges, lessons learned, and considerations for future instances of land transfer from companies to communities.