UN: Rising Demand For Gold, Minerals Fuels Crime In Africa, Others

RISING crime, corruption and instability in Africa and Latin America have been linked to increasing demand for gold and other mineral resources, according to a study, which showed that organised crime groups, corporations and individual actors are deeply involved in illegal gold mining and trafficking.
This is according to a new report, titled, ‘Minerals Crime: Illegal Gold Mining- Part Two of the Global Analysis on Crimes that Affect the Environment,’ released on Tuesday, May 20, by the United Nations Office on Drugs and Crime (UNODC), which examined the motivations driving diverse actors to engage in minerals crime and the destinations of the unprocessed metals and minerals, as well as proceeds from their trade.
According to Chief of Research and Analysis at UNODC, Angela Me: “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 face sexual exploitation, forced labour or displacement, noting: “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 study showed that illegal mining was aggravating environmental damage, including via the use of banned or hazardous chemicals, such as mercury, deforestation to enable access to mineral deposits, and illegal dumping of solid waste.
These practices, which bypass environmental regulations, it said, not only degrade ecosystems and accelerate biodiversity loss, but also pose serious threats to public health, adding: “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.”