Brazil Takes Initiative to Build a Better Gold Supply Chain

In September, the Brazilian Forum for Responsible Gold was launched under the leadership of the National Mining Agency. The event was held at the Ministry of Mines and Energy in Brasilia and jointly hosted by the Brazilian National Mining Agency together with the World Gold Council and Intergovernmental Forum on Mining. The event marked the country’s commitment to leading the charge in formalizing artisanal and small-scale gold mining (ASGM), enhancing traceability, and combating illegal mining and illicit financial flows.

The Forum’s agenda was both ambitious and urgent. Discussions focused on strengthening regulatory oversight, implementing digital traceability technologies, eliminating mercury use in gold processing, and dismantling criminal networks that exploit the informal mining sector. The human and environmental toll of illegal mining was laid bare—particularly its impact on indigenous communities such as the Yanomami and Munduruku peoples, and being a major reason for deforestation together with causing devastating mercury pollution affecting the Amazon’s ecosystems and vulnerable populations. Brazil’s unique position within the Amazon Basin, which spans nine countries with porous borders, underscores the complexity of monitoring gold flows and the need for regional cooperation. In particular, in Brazil, wildcat mining on Indigenous reservations increased by an estimated 1,217% from 1985 to 2020.

Participants in the Forum included representatives from the World Gold Council, Ministry of Mines and Energy, the National Mining Agency (NMA), the Environment Agency, the Central Bank, the Federal Police, the National Mint, IBRAM (the mining industry’s leadership body which campaigns against illegal mining), civil society organizations, and the voice of small-scale miners. The Foreign Ministry’s efforts to update the Palermo Convention on Organized Crime were also highlighted, aiming to make it more effective in addressing environmental and natural-resource-based crimes. The elimination of the assumption of “good faith” in gold trading and the push for traceability back to source concessions were recognized as major steps forward in sector reform.

The Brazilian Federal Police are world leaders in the development of gold traceability technologies and have pioneered the development of a national database which catalogues gold samples from different regions in the country. This has allowed the authorities to bring prosecutions against individuals suspected of being involved in illegal mining and transporting stolen gold. The Federal Police are now looking to expand the database to include samples from neighboring countries to help tackle cross-border crime involving gold.

As Brazil positions itself at the forefront of responsible gold sourcing, the World Gold Council is committed to supporting this transformative journey. The WGC looks forward to working with Brazil to support its programmes. We call on governments, industry leaders, NGOs, and financial institutions worldwide to join this movement. Together, we can ensure that gold becomes a driver of sustainable development, economic empowerment, and environmental stewardship.

By Edward Bickham

Source: World Gold Council