Brazilian Forum on Responsible Gold

NATIONAL MINING AGENCY in partnership with the WORLD GOLD COUNCIL

Brazil has one of the world's greatest mineral diversities and riches, holding a prominent position in the international mining scene. The extraction of minerals like iron ore, copper, bauxite, manganese, niobium, and gold supports a significant portion of Brazil's trade balance and has a strong impact on job creation, tax revenue, and regional development. This importance is reinforced by the country’s vast territory, which still holds areas with great mineral potential to be explored, often in hard-to-reach regions with limited infrastructure.

Within this scenario, gold plays a central role. In addition to its economic and cultural value, the metal has a historical association with the development of various Brazilian regions, from the gold rush cycle during the colonial period to the present day, with the artisanal mining sector playing a significant part.

Artisanal mining, especially for gold, holds a unique position within the mineral sector. This form of mining, often done on a small scale by small groups, represents an important mechanism for economic inclusion in different regions of the country. In areas where the state has a limited presence, artisanal mining offers work and income alternatives for vulnerable populations, thus playing a social role that goes beyond a purely economic aspect.

However, artisanal mining also presents significant challenges. The lack of proper technology and the informality that still characterizes part of the activity can generate substantial socio-environmental impacts, such as deforestation, mercury pollution, and land conflicts. These problems highlight the need for public policies that can balance the socioeconomic importance of artisanal mining with socio-environmental responsibility and public safety, in order to ensure the sustainability of this activity.

In recent years, the Brazilian government has sought to increase its action on artisanal and illegal gold mining, both through specific regulations and stricter inspection of production and trade. Efforts to improve this monitoring and reduce the use of mercury reflect an attempt to align the sector with international best practices, preventing Brazil from being associated with supply chains marked by illegality and environmental degradation.

The Brazilian mineral landscape can only be fully understood by considering the importance of artisanal mining to the country. While being a source of wealth and livelihood for thousands of Brazilians, this activity requires innovative solutions and integrated policies that reconcile economic development, social inclusion, environmental preservation, and public safety. The future of the sector depends on the country's ability to transform artisanal mining into a responsible and sustainable model, in line with current environmental and commercial challenges worldwide.

It is also important to note that Brazilian gold maintains high demand in both domestic and international markets, whether as a financial asset or a commodity. This reality places Brazil strategically within global trade flows and international value chains, which requires attentive and consistent action on the part of the government.

The governance of gold production and trade in Brazil, carried out by both artisanal miners and large-scale companies, requires a balance between its economic and social importance and the environmental and legal risks resulting from illegal exploitation. In this scenario, the National Mining Agency (ANM) plays a central role by granting Artisanal Mining Permits, technically analyzing requests for Mining Concessions, inspecting activities, and establishing technical parameters, always in compliance with the Federal Constitution, the Mining Code, and Law No. 7,805/1989. The goal is to promote legality within the sector, reduce informality, and align mineral production with the public and national interest.

This governance, at the federal level, is shared with other bodies, such as Ibama, responsible for environmental enforcement, and the Federal Revenue Service and Central Bank, which monitor gold trade and work to ensure compliance in order to curb illegal practices. States and municipalities also play relevant roles in environmental licensing and inspection, making federal coordination essential to avoid overlapping responsibilities and regulatory gaps. The absence of this integration favors the expansion of clandestine extraction and the actions of criminal organizations.

In recent years, traceability initiatives, along with the adoption of international best practices, have been strengthening the sector’s governance. The major challenge is to transform artisanal and small-scale mining into a transparent and sustainable activity, capable of generating income and social inclusion without harming the environment or feeding organized crime. In this sense, good governance is fundamental to establishing Brazilian gold as a legitimate, competitive product that respects environmental rules and distances itself from criminality.

The extraction of gold in Brazil is undergoing transformations that reflect technological advancements and the pursuit of greater efficiency. While rudimentary practices once predominated, today we see the incorporation of resources that increase productive capacity and reduce losses, even as pressure grows to mitigate the environmental impacts associated with the activity.

This modernization process also extends to mineral processing and production management. Gradually, alternatives considered safer and more sustainable are replacing traditional practices, although a major challenge remains in making these technological solutions accessible to small-scale producers. At the same time, digital technologies are beginning to be developed to strengthen the monitoring of the production chain and ensure greater transparency in the gold trade.

The monitoring of gold trade is a strategic factor for directing the activity towards legality, sustainability, and competitiveness. The future of the sector will depend on the ability to expand access to these innovations, reconciling productivity with responsibility.

Artisanal gold mining in Brazil presents a series of socio-environmental and public safety issues that challenge the reconciliation of economic development with the preservation of natural resources. The main impacts include deforestation, the degradation of watercourses, and pollution from chemical substances like mercury—which affect ecosystems and communities dependent on these environments—in addition to an increase in crime, as criminal organizations use this metal to commit other illicit acts.

Beyond environmental damage, there are also social tensions linked to land conflicts and disputes with indigenous peoples and traditional communities.

To face these challenges, it is essential for the Brazilian government to advance governance measures that strengthen enforcement, expand the monitoring of the entire production chain, and reduce the operating space for criminal networks. In this context, gold traceability emerges as a viable path from both an economic and technological standpoint.

It is the State's responsibility, as a regulating and fostering agent of mineral activity, to guarantee environmental protection and combat criminality. This imposes the need for integrated action by the State and its agencies, in cooperation with municipalities and states, through the adoption of a traceability system that ensures the interoperability of systems and consolidates an institutional presence in gold extraction regions.

The path to aligning gold trade with societal demands therefore requires an approach that unites regulation, technological innovation, and good practices. Building a safe environment, with firm and coordinated State action, is fundamental to transforming this activity into a vector of responsible development. This will make it possible to reconcile the creation of income and opportunities with environmental protection, the valuing of human rights, and the fight against crime, aligning gold extraction with the demands for sustainability and transparency.

The gold trade involves a complex financial dynamic, marked by the coexistence of legal and illegal flows. As a high-value and liquid asset, gold circulates quickly in the market, functioning both as an export product and a store of value. However, this characteristic also makes it vulnerable to use in illicit chains, such as money laundering, arms, and drug trafficking, which strengthens organized crime.

In the formal model, production must be authorized by the National Mining Agency and traded by financial institutions accredited by the Central Bank of Brazil, which issue invoices and register the metal's origin. Nevertheless, this model still has weaknesses, as it does not guarantee the state full tax collection, transparency, or international credibility. In practice, a significant portion of production escapes these mechanisms and is traded irregularly, using fraudulent documents that lend an appearance of legality to gold extracted from unauthorized areas.

This parallel trade generates fiscal losses, weakens state action, and compromises Brazil's image in the global market. Countries and companies that purchase gold are increasingly demanding proof of responsible sourcing, and the absence of robust mechanisms like traceability creates room for trade barriers and distrust regarding the sustainability of the Brazilian gold supply chain. At the same time, this illegality finances criminal activities and aggravates socio-environmental impacts, especially in the Amazon region.

Faced with this situation, the state has been developing initiatives to strengthen control mechanisms for the gold production chain. The adoption of digital traceability systems, combined with alignment to international governance and sustainability standards, represents a significant step forward. What was once a challenge—integrating regulation, enforcement, technology, and public safety in the sector—is now shown to be possible through traceability, ensuring the regularity of traded gold and creating a more reliable financial chain.

A relação entre o garimpo de ouro e a segurança pública tem ganhado destaque em razão da presença crescente de atividades ilegais associadas ao setor. Em áreas remotas, especialmente na Amazônia, a ausência de fiscalização contínua favorece a instalação de grupos organizados que se aproveitam da extração mineral para obter recursos financeiros e consolidar redes de influência. Esse contexto amplia os desafios de governança e exige maior atenção das instituições estatais.

Um dos mecanismos mais recorrentes nesse processo é o chamado “esquentamento” do ouro, prática em que a produção ilegal é inserida na cadeia formal por meio de documentação fraudulenta ou da utilização de permissões regulares como fachada. Dessa forma, torna-se difícil distinguir a origem do metal, fragilizando o controle estatal e criando pontos de vulnerabilidade no sistema de comercialização.

Outro aspecto relevante é a presença de logística clandestina que sustenta a operação de extrações ilegais. O transporte aéreo irregular de insumos, equipamentos e do próprio ouro conecta regiões de difícil acesso a centros urbanos, reforçando a atuação desses grupos e intensificando disputas por áreas de extração, o que contribui para o aumento da violência.

Nesse cenário, incumbe ao Estado exercer atuação decisiva na prevenção de ilícitos relacionados à cadeia produtiva do ouro. Isso exige a criação e a efetiva gestão de instrumentos de monitoramento, articulados com mecanismos de fiscalização mineral, controle financeiro e vigilância das rotas logísticas. Tal integração não apenas restringe a atuação de organizações criminosas, como também reduz as oportunidades de utilização do ouro em práticas ilícitas. Com isso, garante-se maior transparência, confiabilidade e regularidade no setor.

A governança da cadeia do ouro no Brasil requer abordagens integradas e multidimensionais, que articulem órgãos públicos, sociedade civil, setor privado e organismos internacionais. A repressão, isoladamente, e ações tradicionais de comando e controle não são suficientes para reduzir a atratividade da ilegalidade. É necessário estruturar soluções que promovam a formalização, aprimorem a rastreabilidade do ouro e fortaleçam mecanismos de cooperação institucional em nível nacional e internacional.

It is within this context that the Brazilian Forum for Responsible Gold is inserted as a strategic space for dialogue and cooperation, aimed at formulating concrete solutions for the challenges of the gold supply chain. By reconciling economic development with socio-environmental protection, social and productive inclusion, and the strengthening of public safety, the Forum becomes an essential instrument for Brazil to align its gold production with the contemporary demands for legality, sustainability, and transparency in the global scenario.