Tag Archives: gold trade

Demand for Gold Causes Deforestation

gold mine

The global gold rush, driven by increasing consumption in developing countries and uncertainty in financial markets, is an increasing threat for tropical ecosystems. Gold mining causes significant alteration to the environment, yet mining is often overlooked in deforestation analyses because it occupies relatively small areas. As a result, we lack a comprehensive assessment of the spatial extent of gold mining impacts on tropical forests.

The study Global demand for gold is another threat for tropical forests published in Environmental Research Letters provides a regional assessment of gold mining deforestation in the tropical moist forest biome of South America. Specifically, we analyzed the patterns of forest change in gold mining sites between 2001 and 2013, and evaluated the proximity of gold mining deforestation to protected areas (PAs)….Approximately 1680 km2 of tropical moist forest was lost in these mining sites between 2001 and 2013. Deforestation was significantly higher during the 2007–2013 period, and this was associated with the increase in global demand for gold after the international financial crisis….In addition, some of the more active zones of gold mining deforestation occurred inside or within 10 km of ~32 PAs. There is an urgent need to understand the ecological and social impacts of gold mining because it is an important cause of deforestation in the most remote forests in South America, and the impacts, particularly in aquatic systems, spread well beyond the actual mining sites.

Excerpt from Abstract, Global demand for gold is another threat for tropical forests

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The Natural Resource Curse, Central African Republic

Rebel in Northern Central African Republic. Image from wikipedia

Gold and diamond sales are being used to finance conflict in Central African Republic and United Nations peacekeepers should monitor mining sites to clamp down on illicit trade, a U.N. panel of experts * [pdf]said.In a report, the panel also said the peacekeeping mission (MINUSCA) should deploy troops to the remote north of the country and use drones to monitor the rebel-controlled region to put an end to simmering violence there.  The mission, which launched in September, is operating at only two-thirds of its planned 12,000-strong capacity.

Central African Republic was plunged into chaos when northern, mostly Muslim Seleka rebels seized control of the majority Christian country in March 2013, prompting a vicious backlash by the largely Christian ‘anti-balaka’ militia.  The panel said that some 3,000 people had been killed between December 2013 – when the U.N. Security Council imposed an arms embargo – and August 2014.  The Kimberley Process – a group of 81 countries, including all the major diamond producers, formed to prevent ‘blood diamonds’ from funding conflict – imposed an export ban on raw gems from Central African Republic in 2013.  But since then, an additional 140,000 carats of diamonds, valued at $24 million, had been smuggled out of the country, the panel estimated…..

In their northern enclave, the former Seleka fighters are imposing taxes on a wide range of goods from gold mining to coffee, livestock, and diamonds to fund their operations, the report found.  Former Seleka fighters were issuing mining licences to gold miners at the Ndassima mine near the rebels’ headquarters of Bambari, in the centre of the country, it said…

It suggested that interim President Catherine Panza’s decision to name representatives of the armed groups to cabinet roles may have fuelled conflict.”Competition among political representatives of armed groups for ministerial positions, as well as among military commanders for control of resources, accounts for of the recent infighting between former components of Seleka and rival factions of anti-balaka,” said the report, dated Oct. 29 but only made public this week.

Excerpts, Gold, diamonds fuelling conflict in Central African Republic, Reuters, Nov. 5, 2014

*Letter dated 28 October 2014 from the Panel of Experts on the  Central African Republic established pursuant to Security Council  resolution 2127 (2013) addressed to the President of the Security Council [S/2014/762]

The Fight for Gold: central bank of Sudan against the Militias

central bank of sudan

Jebel Amer, Darfur, Sudan:  Fighting between rival tribes over the Jebel Amer gold mine that stretches for some 10 km (six miles) beneath the sandy hills of North Darfur has killed more than 800 people and displaced some 150,000 others since January 2013. Arab tribes, once heavily armed by the government to suppress insurgents, have turned their guns on each other to get their hands on the mines. Rebel groups that oppose the government also want the metal.

The gold mine death toll is more than double the number of all people killed by fighting between the army, rebels and rival tribes in Darfur in 2012, according to U.N. Secretary General Ban Ki-moon’s quarterly reports to the Security Council.  U.N. officials and diplomats told Reuters the government has been complicit in the violence by encouraging at least one militia group to seize control of mines, a charge the government denies.  Until last year the Darfur conflict pitted the government and its Arab militias against three large rebel groups. The Jebel Amer attack changed that, dividing Arab tribes against each other.  But international peace efforts are still focused on bringing the main rebel groups into a Qatar-sponsored deal Khartoum signed with two splinter groups in 2011.

At the last meeting to discuss the Qatar deal in September, Qatar’s deputy prime minister, Ahmed bin Abdullah al-Mahmoud, expressed concern about the recent tribal violence, but stressed a key factor in bringing peace to Darfur would be to get the rebels to the negotiating table, according to Qatari state media….

The recent resurgence in violence is rooted in Sudan’s loss of a huge chunk of its territory in the south two years ago. When South Sudan seceded in 2011, the rump state of Sudan lost most of its oil production – worth some $7 billion in 2010 – sending the economy into a spin. Sudan’s GDP contracted by 10 percent last year, according to the World Bank.

To replace the oil the government in Khartoum has encouraged people to dig for gold. Now half a million diggers roam Darfur and the north of the country with mine detectors and sledgehammers, according to the mining ministry. The gold rush helped boost output by 50 percent last year to around 50 tons, making Sudan Africa’s third-largest producer, equal with Mali after South Africa and Ghana, according to official data and expert estimates. Gold exports have become Sudan’s lifeline, providing the government with $2.2 billion (net) last year and making up more than 60 percent of all exports.

Sudan’s central bank, desperate for anything to secure foreign currency, pays artisanal miners up to 20 percent more than the global market price, several gold trading sources told Reuters. The central bank denies this.

At the same time, around a quarter of Sudan’s annual gold output is smuggled abroad, industry sources inside and outside Sudan said. If that figure is right, the government lost up to $700 million last year – money it badly needs.  “The government is so desperate for the gold that they are willing to stoke conflict to get artisanal mines under its control,” said Magdi El Gizouli, a fellow at the Rift Valley Institute, a think tank based in London and Nairobi.

On a sunny morning in early January 2013, dozens of Land Cruisers surrounded the town of El Sireaf near the Jebel Amer gold mine. Men readied themselves behind mounted machine guns and mortars and started firing.  “I saw 30 cars. They came from all sides and fired randomly into houses,” said Fateh, a worker who hid in his house as the attack began. “They shot women, children, even cattle, anything they spotted,” he said, asking for his full name to be withheld as he fears the gunmen might come back.  The attackers, members of the Arab Rizeigat tribe appeared to locals to have one goal: to seize control of the mines from the Bani Hussein, a rival Arab tribe…

Until the fighting began, the area was dominated by small artisanal miners. Over the past couple of years, gold diggers arrived from neighboring Chad, the Central African Republic and even far-flung West African countries such as Nigeria and Niger, Darfur residents said.”There were even some Libyans, Syrians and Jordanians,” said Suleiman Dubaid, a Bani Hussein leader who said seven members of his family were killed during the fighting. “Some people made 6,000 (Sudanese) pounds ($800) a day.”

The gold is smuggled out in bags or underwear, to middlemen on the other side of the Chad border. From there it goes to the capital N’Djamena where it is loaded onto commercial flights or stashed in the baggage of courier firms, Sudanese gold sources and Darfur residents say. The final destination is often Dubai, the Middle East’s main gold market.Some gold is also smuggled to Cameroon, where it is exported and shipped to gold markets in India and China, a Sudanese gold source said.

Nonetheless, gold revenues are expected to fall as low as $1.5 billion this year due to declining global prices… That may be one reason, say Western diplomats, tribal leaders and international peacekeepers working in Darfur, why government officials encouraged the Rizeigat tribe to break the Bani Hussein’s control of the Jebel Amer mine. “They wanted the Rizeigat to shake up things a bit so that at least some of the gold goes to the central bank,” said a Western diplomat.

Khartoum has used the Rizeigat before: The tribe provided the core of the feared “Janjaweed” militias, armed and unleashed by the government in 2003 to put down the rebel insurgency, according to rights groups such as Human Rights Watch.The Rizeigat were also Khartoum’s allies during the 1983-2005 civil war with the south, sending fighters armed by the government.

The Rizeigat had their own reasons to seize the mine, according to Western diplomats and tribal leaders. Many of them had been integrated into state forces such as the border guards or central reserve police, but Khartoum has slashed funding to those forces.  Since the January attack, Rizeigat tribesmen have mined Jebel Amer on their own, residents said. Guards have sealed off roads and banned anyone from the Bani Hussein or even some government forces from approaching the site. They attacked a nearby army base in June, according to an internal report from the UNAMID peacekeepers seen by Reuters.

Darfuri rebels want gold, too. Tribesmen from the Zaghawa, the backbone of the rebel Sudan Liberation army (SLA), until recently operated its own mine in Hashaba to the east of Jebel Amer. There is no data on how much rebels make from gold sales but locals and UNAMID staff say Hashaba’s output was much smaller than Jebel Amer.  The potential spoils are huge. To the south of Jebel Amer, for instance, there is an area called “Shangil Tobaya”, which is Sudanese Arabic for “turn a brick and you find gold.” Rebels and Arab militias are vying for control for a strip of low-rise mountains. “People say there is gold up there but we cannot check it because the armed militias are there,” said Adam Saleh, a local farmer.

Excerpts, Special Report: The Darfur conflict’s deadly gold rush, Reuters, Thursday, Oct. 10,  2013