Gold Mining Industry Seeks Central Bank's Help to Foil Illegal Mining

SEATTLE (Scrap Monster): The formal mining industry has sought help from Brazil’s central bank authorities in dealing with the threat posed by illegal gold mining activities in the Amazon region.

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The Brazilian Mining Association (IBRAM), after its meeting with central bank chief Roberto Campos Neto, noted that the bank has pledged to look into ways to boost supervision of bank-authorized buyers, so as to contain unregulated flow of gold. In addition, the association has joined hands with the federal police in developing an innovative traceability system using radioisotopes.

According to Raul Jungmann, President, IBRAM, illegal mining is dominated by criminal organizations and big mining companies are eager to differentiate themselves from illegal miners. The rampant illegal gold mining activities have impacted the reputation of the mining sector, he added.

As per estimates, Brazil has commercialized 229 tons of gold linked with illegal mining activities between 2015 and 2020. This accounted for almost half of the country’s gold production during this period. Also, most of the gold comes from wildcat mining in the Amazon rain forest, causing threat to local indigenous people.