Brazil's Struggle Against Illegal Gold Mining

By Ricardo Brito and Anthony Boadle

BRASILIA (Reuters) – Harley Sandoval, an evangelical pastor, real estate agent, and mining entrepreneur, was arrested in July 2023 for illegally exporting 294 kilos of gold from Brazil's Amazon to the United States, Dubai, and Italy.

Despite being licensed to mine legally in Tocantins, authorities found no gold had been mined there since colonial times. Brazil's Federal Police utilized advanced forensic technology and satellite imagery, revealing that the exported gold originated from wildcat mines in neighboring Pará, some within protected Indigenous lands.

This case represents one of Brazil's first prosecutions leveraging new technology against clandestine gold trading, which may constitute up to half of the country's gold output. Illegal gold mining has surged throughout the Amazon, triggering environmental destruction and increased criminal violence.

According to Federal Police records, seizures of illegally mined gold have risen seven-fold in the last seven years. Sandoval, awaiting trial and actively preaching at a Pentecostal church in Goiania, refutes the allegations, asserting the difficulty of tracing gold once it is melted down.

THE DNA OF GOLD

Gold's traceability is challenging, particularly when sourced from different locales. However, a new police program called "Targeting Gold" is creating a comprehensive database of gold samples tested with isotope scans and fluorescence spectroscopy, allowing scientists to trace its origins.

This technique, traditionally used in archaeology, was adapted to mining by University of Pretoria geologist Roger Dixon. The partnership with university researchers employs advanced analysis methods to detect impurities in gold that reveal its source.

Humberto Freire, director of the Federal Police's Environment and Amazon Department, noted that the innovation enables tracking illegal gold before it is refined for export. Under President Lula's administration, gold seizures have surged by 38% in 2023 compared to 2022, credited to stringent regulations and monitoring efforts.

INDIGENOUS TENSIONS

The gold rush intensified under Lula's predecessor, Jair Bolsonaro, who relaxed Amazon environmental protections, spurring a surge in gold prices due to geopolitical tensions.

Brazil has a history of gold rushes, but the current wildcat mining trend has reached unprecedented levels, with 80,000 locations mapped in the Amazon. Industrial-scale mining practices have emerged, with criminal organizations operating heavy machinery and infrastructure.

Recent invasions of the Yanomami Indigenous reservation have led to violence and humanitarian crises, prompting military intervention. Lula’s administration aims to eradicate illegal mining through the deployment of environmental protection forces.

Investigating organized crime is crucial in combating a trade that feeds global markets, primarily in countries like Switzerland, which imports around 70% of Brazil's gold.

Other Amazonian nations are considering using Brazil's analysis methods to combat their illegal gold trades, while European nations are interested in ensuring traceability of imported gold.

In Brazil, roughly 52% of gold exported from the Amazon is thought to be illegal. Proposals to legalize informal mining persist in the Conservative Congress.

Brazil's forensic police continue to collect and analyze gold samples to build a comprehensive national database to enhance traceability and enforcement efforts.