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UN Warns of Criminal Surge in Gold Industry

Lawrence Ankutseby Lawrence Ankutse
May 20, 2025
Reading Time: 3 mins read
Lawrence Ankutseby Lawrence Ankutse
in Around the Globe
0
Sahel’s Gold Boom Masks Growing Regional Instability

A sample of gold taken from a mine.

The global push toward renewable energy is sparking an unintended consequence — an alarming spike in crime and corruption across mineral supply chains. 

As demand for critical minerals rises, organized crime groups are increasingly infiltrating the mining industry, posing a growing threat to stability and ethical standards worldwide.

According to a new report by the UN Office on Drugs and Crime (UNODC), criminal organizations are embedding themselves deep within gold supply chains. They are taking over extraction sites, dominating trade routes, and gaining control over refining infrastructure, all in pursuit of profit fueled by soaring gold prices.

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The UNODC warns that this growing entanglement of crime and commerce is no longer just a regional concern but “a serious global threat.” These networks constantly evolve, using sophisticated transportation, financial systems, and digital communication tools to hide illegal activity and maintain their grip on the trade.

Criminal groups have developed ties with legitimate businesses, allowing them to “launder proceeds” and slip illegal gold into mainstream supply chains with relative ease. Their operations are not only clandestine but increasingly brazen, undermining regulatory efforts and drawing sharp criticism from international watchdogs.

Environmental Degradation Spreads Across Gold Routes

Illegal mining is ravaging both human lives and the environment. While legal operations are bound by regulations meant to limit environmental harm, illicit ventures sidestep these protections entirely. Forests are razed to reach mineral deposits, causing irreversible ecosystem damage and accelerating biodiversity loss. The threat escalates in protected areas where oversight is minimal and consequences are dire.

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Of particular concern is the use of toxic and sometimes banned chemicals in these illegal operations. Such substances pollute waterways, endanger wildlife, and pose serious health risks to nearby communities.

Illegal mining in Ghana
Illegal mining on waterways is on the rise in Ghana

The UN further warns that organized criminal involvement in gold mining extends beyond environmental harm. Vulnerable communities face an increased risk of “sexual exploitation, forced labour, and displacement.” In areas where law enforcement is weak or compromised, these abuses often go unchecked.

Geography adds another layer of complexity to the crisis. Most gold mining takes place in sub-Saharan Africa, Southeast Asia, Latin America, and the Caribbean. Yet the bulk of gold refineries are situated in Europe, Asia, and North America. This international movement of gold opens doors for criminal interference at multiple points along the supply chain.

Criminals exploit gaps in oversight and inconsistencies in documentation to introduce illegally sourced gold into legitimate markets. Regulatory loopholes and weak monitoring on trade routes make it easy for these networks to operate undetected.

However, the UNODC report points out a possible avenue for action. Because gold refineries are largely concentrated in a handful of global hubs, targeting these facilities with stricter regulations and enhanced scrutiny could deliver meaningful disruption. By focusing law enforcement efforts on these bottlenecks, authorities could “significantly reduce the flow of illicit gold into the global market.”

The findings serve as a stark reminder that the shift toward clean energy must be matched by robust governance in mineral sourcing. Without it, the pursuit of a greener future risks being tainted by blood gold and environmental ruin.

READ ALSO: Minority’s Demands on Load Shedding Slammed as Hypocritical

Tags: criminal gold tradeenvironmental degradation from miningillegal gold miningorganized crime in miningUNODC gold report
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