According to Sao Paulo-based Instituto Escolhas, engaged in study and analysis of fundamental sustainable development themes, reported that all Brazilian gold imports by Germany and 71% by Italy come from Brazilian state of Amazonas, where illegal mining activities are notoriously active.
The study shows that in 2023, the European Union imported approximately 1.7 tonnes of gold from Brazil worth almost $100 million, while 1.5 tonnes come from Brazilian areas exposed to a high risk of illegality.
The main buyer was Germany with a share of 1.3 tons (1289 kg) in 2023, all of which came from the state of Amazonas. Italy imported 356 kg, while 254 kg came from the states of Pará and Sao Paulo, making 71% of exports legally dubious, the study shows.
Illegal gold miners (called garimpo in Portuguese) have been active in Brazilian states of Amazonas and Para in recent years as former president Jair Bolsonaro relaxed environmental controls and encouraged development in the Amazon rainforest, leading to increased deforestation. Sao Paulo state produces no gold, but is the major hub for sales and export of the precious metal, especially of unclear legal origins.
The European Union has strict rules to curb the sale of ores from dubious or illicit origins, but the due diligence process has many blind spots, said Larissa Rodrigues, director of research at Instituto Escolhas. More than half of the 68 tonnes of gold exported by Brazil last year has dubious origins that cannot be traced, despite the current government's measures to crack down on illegal gold sales.
Theodor Lisovoy, Managing Editor, Rough&Polished
