The Ugly Underbelly of Critical Mineral Mining
- Illegal mining for critical minerals is on the rise globally, driven by the green energy boom.
- Criminal gangs are profiting from the extraction of minerals like tin, copper, and manganese in regions like Brazil's Amazon.
- Governments and international organizations must collaborate to combat illegal mining and ensure sustainable mineral supply chains.
As the demand for critical minerals increases, so too does the amount of illegal mining activities taking place. There is a mining boom like we have not seen in decades, as governments and energy companies pursue new mining projects to extract the critical minerals needed to support the global green transition. Companies are looking to mine a wide array of metals and minerals, such as lithium, cobalt, and zinc, for the manufacturing of lithium-ion batteries, renewable energy equipment and other clean technologies. The increase in mining worldwide is also attracting unwanted attention from criminals looking to get their piece of the critical minerals pie by conducting illegal mining.
Brazil has long suffered from illegal mining, and it is becoming even more prevalent as the demand for valuable metals and minerals rises. One of the recent crackdowns caught criminals extracting large quantities of cassiterite, which is the main ore of tin. Although it is less talked about than other critical minerals, tin is a key component for the coating of solar panels, lithium-ion batteries, and solder for a wide range of electronics. The price of tin rose by 29 percent in the first six months of this year and Brazil is one of its biggest exporters.
Illegal mining activities in Brazil’s Amazon region have increased, as more companies have invested in conventional mining activities in the area. As well as cassiterite, criminal gangs are also looking to extract manganese and copper. The number of mining projects has risen following the recent introduction of initiatives to attract critical mining investment by the Brazilian government.
The government has long tried to quash Illegal gold mining activities across Brazil, but criminal gangs continue to search for gold as well as other critical minerals now. While the price of cassiterite is significantly lower than gold, at around $14 to $21 a kilo, it is much more abundant. Gangs can extract up to 300kg of cassiterite a day on the land of the Indigenous Yanomami people, compared to just 4kg or so of gold a month. The mining of cassiterite can help finance illegal gold mining, making it a vital activity for criminal gangs. These gangs pay truck drivers to illegally smuggle the cassiterite across Brazil’s state borders, hidden among other products, such as fruit and fish. In 2022, 60 tonnes of cassiterite en route to China were seized in one single operation at Manaus port.
The police continue to seize huge quantities of illegally mined critical minerals hidden in trucks on Brazil’s highways every day. In June this year, the police seized 23,000 tonnes of manganese that was in the process of being exported to China. This led federal police to close an illegal mining site in Pará state. Authorities in the state also raided several copper and gold sites, where they reported that workers were operating under slave-like conditions.
Caio Luchini, the federal police chief in Roraima, the northernmost state of Brazil, emphasized the difficulties in cracking down on new illegal mining activities. Luchini said it is easier to hide the illegal origins of cassiterite and similar minerals than of gold, which has “more rigid controls”. He added, “With this boom of cassiterite and other minerals, it is worth re-analysing our legislation.”
Brazil is not the only country in Latin America battling illegal mining. In the ‘Lithium Triangle’, a region of abundant lithium reserves located across Argentina, Bolivia and Chile, there are fears of a rise in illegal mining activities as gangs look to profit from the extraction of one of the most sought-after critical minerals. Meanwhile, in Panama this month, the government warned of an increased risk of illegal mining following the closure of operations at the Cobre Panamá copper mine in November last year. Panama's security minister, Frank Ábrego, stated “Inappropriate methods and highly dangerous chemicals such as cyanide are used for these practices. There is information that organized criminal groups are involved in this illegal business.”
The market for these critical minerals is huge, as countries worldwide work on strengthening their supply chains to ensure they have enough steady enough supply of metals and minerals to meet the growing demand. Criminal leaders have found innovative ways to use legitimate trade routes to export illegal minerals, making it harder to track their activities. For example, recent reports suggest that freeports, originally aimed at providing tax-free storage and transit of goods, have been used by criminal leaders to sell illegally acquired critical minerals worldwide.
In April this year, the UN led a panel that aimed to support over 100 countries to establish guidelines to prevent some of the environmental degradation and human rights abuses linked with the mining of critical minerals. The guidelines would address the increase in instances of illegal labor and human rights violations linked with the industry. However, significantly more still needs to be done to tackle the rise of illegal mining activities in key mining regions worldwide. While governments attempt to quash illegal mining within their borders, the introduction of more rigorous international mineral exportation standards could help reduce the problem by encouraging greater supply chain transparency to track minerals from extraction to export.
By Felicity Bradstock for Oilprice.com
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