- A new study concludes that nearly all of the gold imported into the European Union from Brazil comes from Amazonian areas with a high risk of illegality.
- That amounts to 1.5 metric tons of the precious metal in 2023, sourced from wildcat mines known as garimpos, which have a long history of illegality and opaqueness.
- The Brazilian government implemented a series of measures in 2023 to increase oversight of the gold trade, but experts say much of the trade continued underground.
Gold Imports and Illegality in the European Union
The European Union is leading global efforts to curb the imports of deforestation-linked products, issuing a regulation in 2023 banning the import of such goods across a range of commodities, including beef, timber, and soy. Despite these efforts, a recent report from the Escolhas Institute revealed that 94% of the EU’s gold imports from Brazil in 2023 were at high risk of illegality, totaling 1.5 metric tons valued at $93 million.
The high-risk areas where the gold is produced, primarily in garimpos, lack stringent rules and oversight, particularly in Amazonian states like Amazonas and Pará. This creates challenges in tracing the origin of the gold and raises concerns about illegal mining activities within Indigenous lands and conservation units.
Implications of Illegal Gold Mining
Illegal gold mining in Brazil drives deforestation, contaminates rivers with mercury, and poses health risks to traditional communities dependent on water sources. Furthermore, the economic costs associated with illegal gold mining far outweigh the market value of the metal, highlighting the urgent need for stricter regulations and oversight in the gold trade.
Challenges in Regulating Gold Supply Chains
Tracking the origin of gold from garimpos is complex due to the involvement of various intermediaries in the supply chain. The lack of transparency in the gold trade poses a significant challenge for European buyers, who need to ensure that their gold purchases do not support illegal mining activities.
Additionally, despite efforts to crack down on illegal gold mining in Brazil, challenges persist in regulating garimpos, with only a small percentage of gold mining sites being deemed legitimate. Coordination among government agencies and transparency in the gold trade are crucial to addressing the ongoing issues related to illegal gold mining.
Future Prospects and Legislative Measures
Proposed legislation in Brazil aims to tighten regulations on the gold trade, similar to measures taken in the timber and cattle industries to combat deforestation. Implementing mechanisms such as a “gold guide” to track the movement of gold could provide greater transparency in the supply chain and help address the issue of illegal gold mining.
- A new study concludes that nearly all of the gold imported into the European Union from Brazil comes from Amazonian areas with a high risk of illegality.
- That amounts to 1.5 metric tons of the precious metal in 2023, sourced from wildcat mines known as garimpos, which have a long history of illegality and opaqueness.
- The Brazilian government implemented a series of measures in 2023 to increase oversight of the gold trade, but experts say much of the trade continued underground.
Gold Imports and Illegality in the European Union
The European Union is leading global efforts to curb the imports of deforestation-linked products, issuing a regulation in 2023 banning the import of such goods across a range of commodities, including beef, timber, and soy. Despite these efforts, a recent report from the Escolhas Institute revealed that 94% of the EU’s gold imports from Brazil in 2023 were at high risk of illegality, totaling 1.5 metric tons valued at $93 million.
The high-risk areas where the gold is produced, primarily in garimpos, lack stringent rules and oversight, particularly in Amazonian states like Amazonas and Pará. This creates challenges in tracing the origin of the gold and raises concerns about illegal mining activities within Indigenous lands and conservation units.
Implications of Illegal Gold Mining
Illegal gold mining in Brazil drives deforestation, contaminates rivers with mercury, and poses health risks to traditional communities dependent on water sources. Furthermore, the economic costs associated with illegal gold mining far outweigh the market value of the metal, highlighting the urgent need for stricter regulations and oversight in the gold trade.
Challenges in Regulating Gold Supply Chains
Tracking the origin of gold from garimpos is complex due to the involvement of various intermediaries in the supply chain. The lack of transparency in the gold trade poses a significant challenge for European buyers, who need to ensure that their gold purchases do not support illegal mining activities.
Additionally, despite efforts to crack down on illegal gold mining in Brazil, challenges persist in regulating garimpos, with only a small percentage of gold mining sites being deemed legitimate. Coordination among government agencies and transparency in the gold trade are crucial to addressing the ongoing issues related to illegal gold mining.
Future Prospects and Legislative Measures
Proposed legislation in Brazil aims to tighten regulations on the gold trade, similar to measures taken in the timber and cattle industries to combat deforestation. Implementing mechanisms such as a “gold guide” to track the movement of gold could provide greater transparency in the supply chain and help address the issue of illegal gold mining.
