abusesaffiliationarrow-downarrow-leftarrow-rightarrow-upattack-typeburgerchevron-downchevron-leftchevron-rightchevron-upClock iconclosedeletedevelopment-povertydiscriminationdollardownloademailenvironmentexternal-linkfacebookfiltergenderglobegroupshealthC4067174-3DD9-4B9E-AD64-284FDAAE6338@1xinformation-outlineinformationinstagraminvestment-trade-globalisationissueslabourlanguagesShapeCombined Shapeline, chart, up, arrow, graphlocationmap-pinminusnewsorganisationotheroverviewpluspreviewArtboard 185profilerefreshIconnewssearchsecurityPathStock downStock steadyStock uptagticktooltiptwitteruniversalityweb
Report

2 Sep 2021

Author:
UFMG & MPF

Brazil: Report "The Prevalence of Illegal Gold in Brazil"

"The Prevalence of Illegal Gold in Brazil", September 2021

...Different studies and journalistic investigations have already pointed to an expansion of illegal mining in the Amazon as well as associated impacts, such as deforestation...

An escalation of the price of gold and the expectation of changes in the law to allow the exploitation of mineral resources within indigenous lands have stimulated the expansion of illegal mining in areas of high ecosystem value and biodiversity...In particular, 28% of gold production was identified as illegal or potentially illegal in 2019 and 2020, totaling 48.9 tons...

Despite representing only 4% of national production, this illegal production is worth USD 262 million and is probably linked to the 21 thousand hectares of deforestation caused by mining detected by DETER between 2019 and 2020 in the Amazon...

...[T]his illegal gold generates social conflicts (36, 37) and the destruction of environmental resources and pollution by mercury used in mining...By considering the water pollution, carbon emissions, contamination by mercury, amongst other impacts, it is possible to estimate that the extraction of 5,9 tonnes have generated a social cost between USD 3,2 (US$ 3.212.203.712,97) and USD 10,1 billion (US$10.124.703.178,29)...In addition to environmental damage, illegal gold is often used to launder money from drug trafficking, weapons, land grabbing, and corruption.

...[L]arge volumes of gold exported from Brazil may have escaped the ANM title and hence not paid tax. Between 2019 and 2020, 13 states exported gold quantities larger than those recorded at CFEM, totaling 17.8 tons of gold. Of these, three exporting states do not hold any gold mining title. A system that guarantees the legal origin of gold should also be adopted by buyers in Brazil and abroad. Given the approval of different “due diligence” laws in 2021 in France, Germany, the United Kingdom, the European Union, and the United States, Brazil may lose its most important export markets...