International action needed to address human rights abuses, criminal financing, and environmental harm linked to gold mining.
The global gold trade faces mounting scrutiny as criminal networks, armed groups, and corrupt officials exploit the vulnerabilities of the artisanal and small-scale gold mining (ASGM) sector, according to a newly released report. Co-authored by Dominic Raab, former UK Deputy Prime Minister, and the World Gold Council, the report calls for immediate international intervention to address the systemic challenges posed by illicit gold trade.
Report Exposes Illicit Gold Trade Risks
Titled Silence is Golden, the report highlights the dangers of the ASGM sector, which accounts for 20% of global gold production and employs 80% of the workforce in gold mining. The report warns that the sector has become a hub for illegal profiteering, fueling terrorism, armed conflicts, and human rights abuses while widening economic disparities.
The report identifies key challenges driving the crisis, including poor enforcement of legal standards, disjointed compliance efforts, and the exploitation of miners through forced labor and hazardous working conditions.
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Global Scope of the Problem
ASGM operations are active in more than 80 countries, predominantly in Africa, Asia, and Latin America. The informal nature of the sector often leaves workers exposed to dangers such as mercury poisoning and unsafe mining practices, with little recourse to justice or protection.
Dominic Raab underscored the international security threats posed by the illicit gold trade, stating that funds from illegal mining operations are being used to sustain global conflicts. “These illegal activities fund wars in Ukraine and support extremist groups like Al Qaeda and Islamic State to regroup in Africa,” he said. “Governments and international organizations must act now to dismantle these profiteering networks.”
Strategic Plan to Combat Illicit Gold Trade
The report outlines a four-pronged approach to tackle the crisis, supported by 24 specific recommendations for governments, international bodies, non-governmental organizations (NGOs), and the private sector. The proposed objectives include:
- Disrupting Criminal Networks: Enhancing international cooperation to prosecute offenders and dismantle illegal gold trade channels.
- Enhancing Legal Compliance: Creating transparent frameworks to integrate ASGM activities into the formal gold supply chain.
- Fostering Global Cooperation: Sustaining focus by key global entities like the G7 and G20 to address gold-related crimes and illicit financial flows.
- Empowering Local Economies: Supporting economic alternatives to reduce reliance on unsafe and unregulated ASGM practices.
David Tait, CEO of the World Gold Council, emphasized the human and environmental costs of inaction. “Without sustainable alternatives, millions of the world’s poorest people are driven into life-threatening conditions in artisanal gold mining,” Tait said. “Redirecting illicit gold flows while promoting responsible practices can generate widespread benefits.”
Economic and Environmental Stakes
The report highlights the urgent need for international collaboration to curb the illicit trade, promote accountability, and support sustainable development. By addressing these challenges, stakeholders aim to disrupt criminal networks and create pathways for safer, regulated gold mining practices that can foster economic growth and environmental restoration.
The World Gold Council and global leaders urge governments to prioritize this issue, warning that failure to act could exacerbate global security risks and deepen the humanitarian crisis tied to illegal gold mining.
