Tag Archives: mercury and gold mining

The Global Gold Rush and Plunder of Congo

Since March 2020, record amounts of gold dug from artisanal mines in the conflict zones of Eastern Congo have been smuggled across the porous border with Uganda, where it is being stamped with fake certifications before being shipped to international markets in Dubai, Mumbai and Antwerp, according to Ugandan security officials, smugglers and traders. Much of the gold is reaching these overseas markets using cargo planes returning from Uganda after delivering Covid-19 aid and other essential supplies, according to plane manifests seen by The Wall Street Journal.

The trade in conflict gold isn’t new, but it has perhaps never been more lucrative: Gold prices at illegal and unregulated Congolese mines, where supply chains have been disrupted by coronavirus shutdowns and renewed violence between militant groups, have dropped over 40% since April 2020, according to local traders, while on global markets, prices are up by almost a third…Activists and U.N. investigators have long accused Uganda and several of Congo’s neighbors of being complicit in the plunder of Congolese gold…The calls to end the illicit trade grew louder last year after Uganda’s gold exports overtook coffee to become the leading export commodity for the first time—despite the country producing very little bullion.

U.N. investigators estimate that each month between 2 tons and 3 tons of Congo’s conflict gold—with a market value of over $100 million—is crossing the Ugandan frontier, passing border crossings patrolled by heavily armed guards, with metal fencing and razor wire erected to reduce the flow of people due to coronavirus fears…

Smugglers and police say the gold is secreted in trucks that are allowed to bypass coronavirus restrictions to deliver “essential goods” from fuel to food supplies. The yellow bars, weighing between 5 to 20 kilograms, are stuffed underneath truck cabins, inside battery compartments and emptied gasoline tankers. Once inside Uganda, the truckers sell the bars to traders who purchase forged documents in Kampala that disguise the gold’s origin.

The scramble is fueling violence in the eastern Congolese province of Ituri…Fresh spasms of violence have left more than 1,300 civilians dead since March 2020, in what the U.N. says may amount to war crimes. Some six million people are displaced. Armed groups are carrying out predatory raids on mines in search of gold.

In the meantime on Wall Street, on July 24, 2020, gold futures were priced at $1,897.50 a troy ounce eclipsing their August 2011 peak of $1,891.90. The coronavirus has ignited a global gold rush, with physical traders around the world trying to get their hands on more metal and individuals around the world ordering bars and coins.

Excerpts from Nicholas Bariyo and Joe Parkinson, Under Cover of Coronavirus Lockdown, a Booming Trade in Conflict Gold, WSJ, July 9, 2020, Gold Climbs to a High, Topping Its 2011 Record, WSJ, July 24, 2020

Cutting Trees, Digging Gold and Mercury Pollution – Amazon

The past two decades have seen a sharp increase in illegal and informal gold mining in Peru‘s southern Amazon region of Madre de Dios. These small-scale operations typically involve cutting down all of the trees in a particular area, digging a large pit and then using mercury to extract gold from the excavated soil… The mercury binds to any gold in the soil, creating a large chunk that can be easily removed. This chunk is then burned, evaporating and releasing the mercury into the air while leaving behind pure gold

Besides releasing mercury into the atmosphere, miners typically add three to four times more mercury… than is actually needed. While this ensures all of the gold is extracted, it also means there is a large amount of leftover mercury in the slurry that is inevitably dumped back into the excavated pit. And because the whole process started with the clearing of trees, there’s nothing to stop the mercury-laden soil from eroding into nearby rivers.

“This means mining practices can hit people three times with mercury — once from direct contact, once from atmospheric transport and deposition, and once from soil mercury mobilization due to land clearing,” said William Pan,Professor of Population Studies at Duke. “The scenarios we run demonstrate that even if mining were to end today, since vegetation is unlikely to return for several decades, the cleared land will continue to release mercury.”

For more details see Duke University

Excerpts from Deforestation, erosion exacerbate mercury spikes near Peruvian gold mining, Science Daily, Dec. 12, 2019