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THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

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Why the gold boom is causing a surge in illegal mining

Gold’s soaring value masks its grim toll: illegal mining fuels environmental destruction, human suffering, and lost revenues in resource-rich nations. Communities face poisoned waterways, health crises, and deadly mining conditions. As inequality deepens, ethical sourcing and stronger regulations are urgent, reminding us that gold’s glitter hides a darker, costly shadow.

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The world’s fascination with gold has reached unprecedented levels as its price is predicted to hit $3,000 per ounce by 2025. Widely seen as a “safe-haven” asset during times of economic uncertainty, gold’s allure has brought renewed attention to its investment value. Yet behind the glittering surface lies a far more complex narrative—one that involves environmental devastation, human suffering, and the challenge of illegal mining.

As gold prices climbed in 2024, so too did the scale of illegal mining activities, particularly in resource-rich areas like Africa. Recent reports from Swissaid estimate that over 435 metric tons of gold, worth more than $36 billion, were smuggled out of Africa in 2022 alone. This staggering figure not only illustrates the vast reach of illicit mining operations but also underscores the economic toll on countries stripped of valuable resources and revenues.

In Ghana, the effects of illegal mining, commonly referred to as “galamsey,” reveal a sobering reality. While these operations provide much-needed income to local communities, they leave behind severe environmental and social consequences. Rivers that once supplied drinking water are now contaminated with chemicals like mercury, posing significant health risks. Ecosystems are being ravaged, and communities face growing public health crises. “Illegal mining is much more than a financial matter—it’s a human and environmental catastrophe,” a Ghanaian advocate recently said, underscoring the issue’s profound complexity.

The human cost of illegal mining became tragically evident in January 2025, when at least 87 miners perished in an abandoned gold mine near Johannesburg, South Africa. The miners, trapped underground in precarious conditions, lost their lives in an incident that highlighted the grave dangers of this shadowy industry. Sources revealed that the rescue efforts were hindered by the mine’s poor condition, further illustrating the immense risks for those involved. This was not just a local tragedy—it symbolized the global failure to address the root causes pushing people into unsafe and illegal mining practices.

Industry experts like Marc Ummel of Swissaid emphasize that illegal mining reflects far deeper issues of poverty and inequality in gold-producing regions. “Illegal mining is not just an economic issue; it highlights a failure to tackle poverty at its core,” he remarked. The global gold industry, while thriving, faces mounting criticism for its role in perpetuating exploitation and environmental degradation. Ethical sourcing is gaining traction as consumers and institutional investors alike are encouraged to ask hard questions about the origins of the gold they purchase.

Illegal mining also challenges national economies, depriving governments of critical revenue needed for essential services like education, healthcare, and infrastructure. Resource-rich countries like Ghana and South Africa find themselves in a difficult position, bearing the brunt of environmental degradation and human loss while multinational corporations reap the rewards of soaring gold prices. This imbalance threatens to entrench inequality and stifle economic growth.

As the rush for gold accelerates, the need for accountability along the supply chain has never been greater. Governments in gold-producing nations must strengthen oversight and enforcement of mining regulations. Simultaneously, investors and consumers must recognize their moral responsibility to support ethically sourced gold. Awareness of sustainable practices and fair labor conditions is essential to disrupting the ongoing cycle of exploitation.

 


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