Rising crime, corruption and instability in Africa and Latin America have been linked to increasing demand for gold and other mineral resources.
This was revealed in a new report released on Tuesday by the United Nations Office on Drugs and Crime (UNODC).
The report titled ‘Minerals Crime: Illegal Gold Mining— Part Two of the Global Analysis on Crimes that Affect the Environment ’ examines the motivations driving diverse actors to engage in minerals crime, as well as the destinations of the unprocessed metals and minerals and the proceeds from their trade.
Organised crime groups and corporations, as well as individual actors, are involved in illegal gold mining and trafficking, the study finds.
“Organised crime groups have increasingly embedded themselves in gold supply chains, attracted by the sector’s high profitability and the rising value of gold.
“Drug trafficking organisations in Latin America have expanded into illegal gold mining, taking advantage of established drug smuggling routes and infrastructure. Revenues from gold are then reinvested into other criminal operations.
“In Africa, however, some organised crime groups operate exclusively in gold, while others use gold profits to fund armed activity, challenge state authority or fuel conflict,” the report said.
It added that local populations in both regions may face sexual exploitation, forced labour or displacement as a result.
“All types of actors involved in illegal mining and trafficking use fraud, corruption and money laundering to enable their crimes and bring illegally-sourced metals and minerals into licit global markets.
“Organised crime groups, corporations, and traders alike exploit legal loopholes and weak regulatory oversight to conceal the origin of minerals and metals. They may bribe officials to obtain mining concessions or avoid legal consequences for violations, or forge permits and other documentation,” the report further explained.
Illegal mining is intensifying environmental damage, the study emphasises, including via the use of banned or hazardous chemicals like mercury, deforestation to enable access to mineral deposits, and illegal dumping of solid waste.
These practices, which bypass environmental regulations, the humanitarian organisation said, not only degrade ecosystems and accelerate biodiversity loss, but also pose serious threats to public health.
“We need better data to quickly spot and respond to the criminal exploitation of the mining sector, together with more globally harmonised legislation and standards.
“Due diligence and traceability of critical minerals are essential, alongside targeted law enforcement responses to ensure the security of supply chains of critical minerals,” noted Angela Me, Chief of Research and Analysis at UNODC.
