Rising gold prices provoke a global surge in illegal mining - World Gold Council
Kyiv • UNN
Rising gold prices lead to an increase in informal and illegal mining, which has devastating environmental consequences and contributes to the growth of organized crime. The World Gold Council calls for the creation of official processing centers to legalize this sector.
The global gold market is facing a serious problem: rising prices for the precious metal are leading to a rapid increase in informal and unregulated, and often illegal, mining, which has devastating consequences for the environment and contributes to the growth of organized crime. This was reported by the World Gold Council (WGC), calling for the creation of official processing centers to legalize this sector, writes UNN.
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According to WGC Chief Financial Officer Terry Heymann, small-scale gold mining has likely grown to approximately 30% of global supply. In many gold-rich countries, such as Ghana, rural populations are actively shifting from farming to such small-scale mining.
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Unregulated mining activities cause significant mercury pollution and provide criminal groups with a new source of income. Although a 2021 World Bank report used a more conservative estimate of 20% of global supplies, Heymann considers it outdated. Total gold reserves in 2024, according to the WGC, amounted to 3591.29 tons, which at current prices is worth more than $480 billion.
As a solution to the problem, Heymann recommends the construction of official facilities, such as Dynacor Group's Veta Dorada plant in Peru. At such enterprises, artisanal miners could process their ore, minimizing environmental pollution and gaining access to the official market.