Illegal Gold Mining in the Amazon: A Threat to Indigenous Lands and Global Markets
Illegal gold mining continues to devastate Indigenous lands in Brazil, with Fenix DTVM recently exposed for its involvement in mining operations on the Kayapó Indigenous Land in Pará. Despite the severity of this environmental crime, global authorities and the mainstream media have largely overlooked the case due to its limited coverage in Portuguese.
This article reveals how gold illegally extracted from Indigenous lands in Brazil is potentially finding its way into global markets, including Switzerland and Dubai, and prestigious international refineries. We will also address the failure of the London Bullion Market Association (LBMA) to investigate and enforce responsible sourcing standards, raising serious questions about the integrity of the precious metals market.
Fenix DTVM’s Involvement in Illegal Mining on Indigenous Lands
According to investigations in Brazil, Fenix DTVM, a Brazilian financial institution involved in gold trading, has been implicated in illegal gold mining activities on the Kayapó Indigenous Land in Pará. This protected area, home to one of the largest Indigenous communities in Brazil, has long been a target for illegal miners seeking to exploit its rich natural resources.
How the Illegal Operation Worked
Investigations have shown that the gold extracted from these protected lands was moved to Mato Grosso’s capital, Cuiabá, where it was processed and then shipped abroad. The sheer volume of gold flowing through this illegal network underscores the scale of the operation. Despite the critical environmental and human rights violations, global recognition has been lacking.
Global Distribution: Singapore, Hong Kong, and Beyond
In an meeting I had with Fenix last year in Singapore, representatives from Fenix DTVM informed me that they were looking to diversify their Brazilian gold distribution network to include Singapore and Hong Kong. On my part I had a coffee with them for over 2 hours and they seemed above board on the surface, I did not conclude to have any further business relations with them besides that.
One good thing that came out of that meeting was our discussion on their “legitimate clients” going illegal and smuggling gold out of the country via Venezuela, you can read the article here that came from that meeting: Venezuela’s Shimmering Secret: Venezuela Gold Rush as US Sanctions Lifted.
This global expansion demonstrates the far-reaching impact of illegal mining, as gold extracted from the Kayapó Indigenous Land finds its way into international markets. The company also claimed to have refinery accounts with multiple refineries in the USA, Dubai, and Switzerland, including some LBMA Good Delivery refineries.
While they refrained from naming specific LBMA refineries, the implications are significant. If LBMA-certified refineries are indeed purchasing gold sourced from illegal operations, it raises serious concerns about the effectiveness of LBMA’s responsible sourcing framework and the due diligence the refineries (and the auditors) are doing.
The Role of the LBMA in Ensuring Responsible Sourcing
The LBMA claims to uphold stringent responsible sourcing guidelines to prevent gold linked to conflict, environmental destruction, or human rights abuses from entering global markets. Yet, cases like Fenix DTVM expose potential gaps in enforcement. While the LBMA promotes its responsible sourcing standards, it must investigate whether its member refineries are unknowingly or willfully dealing with gold from illegal sources.
In fact I personally reported issues related to Brazil to the LBMA back on the 5th of April this year by email amongst many other areas of concern, and despite chasing it has largely been overlooked and ignored! Happy to discuss this with any reporters! with huevos!!
Is the LBMA Failing in Its Mission?
There is growing skepticism about the LBMA’s ability to uphold its standards. The organization has hosted conferences and training programs promoting responsible sourcing, but there are concerns these initiatives serve more as profit-generating ventures than actionable frameworks. Without proper enforcement, these efforts may amount to little more than “hot air.”
The LBMA must urgently launch a comprehensive investigation into Fenix DTVM’s refinery relationships and take decisive action if violations are found. Failing to do so will damage its credibility and, more importantly, contribute to the ongoing devastation of Indigenous lands in Brazil.
Environmental and Human Rights Impacts
The environmental and human toll of illegal gold mining on Indigenous lands is immeasurable. The Kayapó people rely on their land for survival, and illegal mining operations have led to widespread deforestation, river pollution, and displacement of local communities. Mercury, a toxic substance used in gold extraction, further contaminates water supplies, causing long-term harm to both the environment and human health.
According to data from the Brazilian Institute of Environment and Renewable Natural Resources (IBAMA), illegal gold mining in the Amazon has increased by 25% in the last five years, with Indigenous lands like Kayapó being hit hardest.
Why Global Authorities Must Act
Despite these findings, international regulatory bodies and mainstream media have largely ignored this issue. One reason for this is the language barrier—the majority of reports on illegal mining in Brazil are published in Portuguese, preventing global coverage and action.
This lack of attention allows companies like Fenix DTVM to operate under the radar, furthering their illegal activities without international scrutiny. It is crucial for global authorities, including the United Nations and Interpol, to focus their efforts on curbing illegal gold mining and holding perpetrators accountable.
Responsible Gold Sourcing: What Needs to Change?
- Stricter Audits and Transparency: International regulatory bodies must enforce stricter audits on gold refineries, particularly those in high-risk areas such as Brazil. Refineries should be required to disclose their sources of gold, and these disclosures should be subject to third-party verification.
- LBMA’s Role: The LBMA must move beyond hosting conferences and training events and start conducting rigorous audits of its member refineries. Companies involved in gold trafficking and refining should be blacklisted from LBMA membership.
- Global Cooperation: Countries that import large quantities of gold, such as the USA, Switzerland, and Dubai, must work together to implement stringent controls on gold sourcing. This cooperation should include information-sharing and joint investigations into companies like Fenix DTVM. Not the usual finger pointing blame game!
Final Thoughts
Fenix DTVM’s involvement in illegal gold mining on Indigenous lands highlights a much larger issue: the failure of international bodies, including the LBMA, to enforce responsible gold sourcing standards. Gold extracted from protected lands in Brazil is entering global markets, including major financial hubs like Switzerland and Hong Kong, without the scrutiny it deserves.
Immediate action is required to prevent further environmental degradation and to protect Indigenous communities from the long-lasting effects of illegal mining. The LBMA, along with other global regulators, must ensure that the precious metals market remains free from conflict and environmental destruction.
Special Thanks
A special thanks to Pablo Rodrigo for his diligent reporting on this important issue. His work has been instrumental in bringing to light the illegal mining activities taking place on Indigenous lands in Brazil, and it has served as the foundation for this blog post.
Without his thorough investigation and commitment to exposing the truth, this crucial information might have remained unnoticed by global authorities and the public. Thank you, Pablo, for your dedication to protecting the environment and Indigenous communities.
Disclaimer
The information presented in this article is primarily based on reports and findings from external sources, including the website Gazeta Digital (https://www.gazetadigital.com.br). While we have made every effort to ensure the accuracy of the content, this blog post relies heavily on the original reporting and investigations conducted by Gazeta Digital. Any opinions or interpretations expressed are those of the author and do not necessarily reflect the views of Gazeta Digital or its affiliates. We encourage readers to visit the original source for further details and context.