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14/11/2024
Mining News

European gold imports from Amazon face scrutiny: Majority of Brazilian gold linked to illegal mining

A recent study by the São Paulo-based Instituto Escolhas has revealed troubling insights into the origins of Brazilian gold imported by European countries. In 2023, Germany imported 1.3 tonnes of Brazilian gold, all sourced from the Amazon state of Amazonas, while Italy imported 356 kg, with 71% coming from Pará and São Paulo. The surge in illegal gold mining, driven by relaxed environmental regulations under former President Jair Bolsonaro, has exacerbated deforestation and illicit mining activities in the Amazon.

São Paulo, despite producing no gold, has become a major hub for the trade and export of gold with unclear legal origins. The report, titled “Europe’s Risky Gold,” highlights significant gaps in the European Union’s due diligence processes, which fail to fully trace the origins of the gold and ensure responsible sourcing.

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Approximately 94% of the Brazilian gold imported by Germany and Italy has dubious origins, entering Europe through a complex chain of intermediaries from numerous Amazonian gold prospects. Despite efforts by the Brazilian government to address illegal gold sales, over half of the 68 tonnes of gold Brazil exported last year remains untraceable.

While Canada and the United Kingdom import Brazilian gold from legally licensed mines, Switzerland, the second-largest buyer of Brazilian gold, receives significant quantities from wildcat mining sites, much of which ends up in the EU. The report calls for increased scrutiny and transparency in European gold purchasing to combat the influence of illegal mining in the Amazon.

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