As global gold prices soar to all-time highs, illegal gold mining is rampant around the world. From abandoned mines in South Africa to the Brazilian Amazon and war-torn Sudan, criminal organizations, armed groups, and impoverished miners have converged. This has led to a massive criminal economy intertwined with violence, environmental destruction, and money laundering.
◇Minings filled with firearms and explosives... Gold becomes a funding source for wars
On the 21st (local time), according to the Financial Times (FT) of the United Kingdom, the once-prosperous Stilfontein gold mine in South Africa has now become a battleground for illegal miners known as 'zama-zama' and armed gangs. Local residents testified that armed migrants come, stay for days, and then disappear. Mine security expert Louis Nel noted that "a small war is taking place underground, with not just gunfire but also homemade explosives being used."
The situation in the Brazilian Amazon is no different. For a long time, small-scale illegal mining known as 'garimpo' has spread, but recently, drug cartels have become actively involved. Through secret runways deep in the jungle, drugs and gold are exchanged simultaneously, and gang members armed with AK-47 rifles protect the mining sites. In indigenous villages, malaria, alcohol, and drugs are rampant, with rivers and forests contaminated by mercury being destroyed.
In Sudan, illegal gold mining has become a lifeline for civil war. The United Nations reported that the military and the paramilitary group Rapid Support Forces (RFS) have plundered gold to use for weapons and operations. There are estimates that at least 150,000 people have lost their lives due to the flow of gold revenue into war funding. The claim that "gold has become the new oil" is not an exaggeration.
International organizations and non-governmental organizations (NGOs) warn that the scale of illegal gold trading amounts to hundreds of billions of dollars annually. The international NGO SwissAid estimates that in 2022 alone, 435 tons (t), worth approximately $31 billion, of gold was smuggled out of Africa. In Peru, it is estimated that more than 40% of total gold exports are illegal. Experts note that "criminal organizations are making more money from gold than from drugs," clearly illustrating the reality.
In fact, the value of gold has tripled over the past decade and has risen more than 25% just this year. Amid inflation, geopolitical tensions, and trade wars, investors seeking safe assets are hoarding gold, creating a 'golden age' for criminal organizations.
◇Washed in Dubai and Mumbai, then exported to Europe... Environmental destruction also
Illegally mined gold swiftly flows from the jungles of Africa and South America to international hubs like Dubai, Mumbai, and Hong Kong. In particular, the United Arab Emirates (UAE) has faced criticism for its loose regulations and active cash transactions, acting as a 'money laundering machine.' Gold brought in from abroad is refined and disguised as 'Emirati,' then exported to refining and trading hubs such as Switzerland and the UK. Refined gold bullion is chemically identical, making it nearly impossible to distinguish the origins.
The UAE government claims it has recently strengthened crackdowns, but jewelers in the Dubai gold market admit, "We do not know where the gold we sell comes from."
Moreover, this is not merely a criminal issue. It is shaking communities and the environment to their core. In the Amazon, mercury pollution is killing fish and rivers, while indigenous people are losing their livelihoods and traditional ways of life. Alessandra Korap, an activist from the Munduruku tribe in Brazil, appealed, "Garimpo destroys forests, pollutes rivers, and fosters organized crime."
The 'zama-zama' miners in South Africa are mostly migrant laborers fleeing hunger. They enter the mines empty-handed and risk their lives to extract gold, but most of the profits are taken by criminal organizations. In Peru, clashes between gangs surrounding the mines have resulted in 39 workers losing their lives over the past three years.
◇Unstoppable illegal mining... "Homework for the world"
The international community is increasing pressure to block illegal gold trading and laundering. The Brazilian government has claimed to have shut down illegal mining operations in indigenous territories and destroyed equipment, reducing last year's gold export volume by 40% compared to the previous year. However, enforcement remains insufficient in the face of the vast scale of the Amazon, corrupt local administration, and the financial power of criminal organizations.
The World Gold Council has warned that the scale of illegal gold outflows and money laundering has reached "unprecedented levels." Experts point out that "if the international community continues to neglect this issue, the illegal gold industry will grow into a criminal empire more immense than drug cartels."
An international NGO official stated, "Gold is no longer just a precious metal; it has become the fuel that feeds war, crime, and inequality," adding that "the enormous black market generated by the surge in gold prices is ultimately homework that the entire world must tackle together."