Latin America Advisor

Latin America Advisor

A Publication of The Dialogue

What Is the Impact of Illegal Mining in Latin America?

Illegal mining operations are present in several countries of Latin America. An illicit mining site in Peru is pictured.

Authorities in Venezuela said April 23 that they had expelled some 10,000 people from the illegal Bulla Loca gold mine in Bolívar state. At least 16 people were killed in a collapse at the mine last February. How big of a problem is illegal mining in Venezuela as well as in other countries of South America? What are the economic effects and security concerns around illegal mining in the region? Who is behind illegal mining in the region, and where is the money derived from it going?

Maiah Jaskoski, professor in the Department of Politics and International Affairs at Northern Arizona University: “Illegal mining is entrenched in Latin America. For example, it contributes nearly 70 percent of Colombian gold and outranks all other criminal activities in Venezuela. Illicit mining, which disrupts topsoil and riverbanks, and employs and disperses toxic chemicals, has devastated areas of the Brazilian, Colombian, Peruvian and Venezuelan Amazon. State strategies to check the sector consist of a combination of repression and alternative development initiatives. This approach has yielded dismal results, due largely to the extraordinary promise of income from illegal mining. Powerful criminal organizations secure mine sites and transport routes, using payoffs and coercion. For locals, the labor-intensive sector generates considerable wealth relative to other occupations. Indeed, widespread involvement in unregistered mining in Peru’s Madre de Dios region—and the anticipated negative electoral repercussions of…”

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About the Latin America Advisor

The Inter-American Dialogue publishes the Latin America Advisor every business day for a distinguished membership of informed corporate leaders, scholars, and government officials invested in Latin America’s development and future. The Advisor‘s highly regarded Q&A section covers questions submitted by subscribers themselves. Commentators regularly include heads of state, business leaders, diplomats, economists, analysts, and thought leaders from around the world. Many of the world’s largest and fastest-growing companies subscribe to the Advisor. To subscribe, click here. For terms and conditions, click here. For more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.


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Gene Kuleta

Editor
P. 202.463.2920
E. gkuleta@thedialogue.org

Carl David Goette-Luciak

Reporter

Nili Blanck

Reporter