When we talk about Brazil, the first thing that comes to mind is the Amazon and all the natural riches that surround it, such as the rivers, the forest, wild animal species, and fertile soil. Unfortunately, we are also aware that its fauna and flora are being devastated, with some species on the brink of extinction, due to illegal deforestation and, importantly, due to illegal gold mining.
Gold mining in Brazil began during the colonial period with the discovery of gold in the regions of Minas Gerais and Goiás. As the gold deposits in these regions became depleted, the miners started to move to other areas in search of the precious metal and settled in the Amazon region.
Gold mining in the Amazon has a significant impact on the region. Legal mining practices generates wealth and economic opportunities, while illegal practices can lead to deforestation, river contamination, social conflicts and violation of indigenous rights. As a result, police control and legal regulation of gold mining in Brazil have been recurring topics of debate at national and international levels.
Recently, Brazilian law enforcement authorities, along with IBAMA (Brazilian Institute of Environment and Renewable Natural Resources), have carried out operations in various regions of Brazil, including the Amazon, aiming to dismantle criminal organizations suspected of engaging in illegal gold mining. As a result, illegal mines have been shut down and their mining equipment has been rendered useless or destroyed. Additionally, law enforcement agents have focused on identifying leaders and other members of the criminal associations involved in illegal gold mining, as well as seizing their capital.
In order to prevent the trade of illegally extracted gold, the Supreme Federal Court suspended a legal clause, which presumes the legality of acquired gold and the good faith of the acquiring legal entity. This suspension was granted in Direct Actions of Unconstitutionality (ADIs) 7273 and 7345, filed by Political Parties in Brazil.
In these ADIs, the Political Parties question the validity of the norm, which simplifies the commercial process and reduces the responsibilities of Brokerage Firms and Securities Dealers (DTVMs), which are the only entities authorized by the Central Bank to acquire and resell gold from mines in the Amazon region, based solely on information provided by sellers.
According to Minister Gilmar Mendes, the norm that defends the good faith of the gold buyer should be suspended because it is not consistent with the duty to protect the environment provided by the Brazilian Constitution. Furthermore, he also states that the simplification of the process has allowed the expansion of illegal trade, facilitating illegal mining, thus causing deforestation, river contamination, and violence in mining regions, even affecting indigenous peoples in affected areas.
There is no doubt that combating illegal gold mining is essential to preventing irreversible environmental and social damage. However, national and international political pressure to eradicate this criminal activity has led to confusion and indiscriminate police operations, targeting both illegal and legal gold mines.
Legal gold mining, contrary to illegal gold mining, is mechanized with high capital investment and gold yields, and comparatively low labor intensity. While not always the case, legal gold mining typically meets national and international requirements, including the payment of royalties and taxes, the acquisition of mining permits, and compliance with health, safety, social, environmental, and mine closure standards.
In Brazil, specifically in the Mato Grosso region, small and medium-scale miners are dedicated to the production and commercialization of completely legally mined gold. These mines operate sustainably, using methods to minimize environmental impact. For example, during the gold extraction process, mercury, which is highly polluting, is up to 98% reused and the remaining 2% is reprocessed to prevent any amount from being discharged into the environment.
In conclusion, despite the efforts of some miners to follow the laws and ensure the preservation of the environment, legal gold mining has been targeted by police authorities simply because it is mining. Which is why it is crucial for law enforcement authorities and members of the political scene to differentiate illegal from legal gold mining and apply this knowledge when investigating criminal practices. When the regulated and legal operations are recognized by the authorities, the police action can focus on the illegal activities. This will lead to the internationally recognized sustainable growth of the legal gold mining.