Brazil looking to scotch illegal gold mining

Brazilian authorities are working on a strategy to curtail illegal gold production, creating a more efficient traceability mechanism, which could help many mining companies to improve their reputation among investors. 

As part of this effort, the country's federal police is looking to form partnerships with international institutions to create a database across the country called the 'gold DNA'. The aim is to make production of the precious metal trackable, as is done with diamond mining.

The initiative was announced this week during the international seminar on gold traceability, organized by Brazil's federal police in partnership with the International Criminal Police Organization, Interpol.

"We're attending this seminar and this federal police initiative is extremely important, because currently the main obstacle to combating illegal mining activity is identification of the origin of the gold," Larissa Rodrigues, project manager at sustainability-focused NGO Instituto Escolhas, told BNamericas.

Gold production is the focus of illegal mining activity in Brazil and these activities cause serious environmental impacts, as many of the areas where such operations take place are on indigenous lands and in the rainforest, in addition to fueling corruption, violence and human rights abuses.

Brazil is one of the world’s top gold exporters, but a significant proportion of the metal is produced illegally.

"The mechanisms to combat illegal activity will benefit the entire mining sector, because it will be possible to show what is being produced legally and illegally. Large companies that operate legally still face a reputational impact because of the existing illegal activities of other parties. The whole sector suffers," said Rodrigues.