Title: The Nexus of Illegal Gold Mining and Human Trafficking in Global Supply Chains
Author/Institution: Verité Publication Year: 2016
The 2016 report The Nexus of Illegal Gold Mining and Human Trafficking in Global Supply Chains by Verité examines the hidden connections between informal gold extraction and severe labor abuses across Latin America. Drawing on field investigations, interviews with workers, and supply chain analysis, the study documents on how illegal mining operations often rely on coerced labor, including children and vulnerable migrants. It highlights that environmental devastation, mercury contamination, and river pollution—is frequently coupled with the exploitation of workers who are trafficked, indebted, or otherwise trapped in mining camps under abusive conditions.
A key contribution of the research is its detailed mapping of how gold tainted by trafficking and exploitation enters formal global supply chains. Gold extracted under coercive conditions is laundered through intermediaries, refineries, and exporters, ultimately reaching international markets where it becomes indistinguishable from legally sourced material. This exposes significant oversight gaps in corporate due diligence and government regulation. The report underscores that multinational jewelry companies, electronics manufacturers, and even financial institutions may inadvertently profit from or perpetuate these abuses when robust traceability systems are absent.
The findings remain highly relevant to current debates on illegal gold trade in the Amazon. The Verité study shows that illegal mining is not only an environmental or criminal issue, but also a profound human rights challenge that undermines the legitimacy of global supply chains. Its emphasis on labor exploitation and trafficking complements more recent analyses of organized crime and governance gaps, reminding policymakers and companies that enforcement must be coupled with worker protections, supply chain transparency, and survivor-centered remedies. In regions like Peru and Colombia, where illicit mining remains entrenched, addressing these abuses is essential for restoring social license to operate in both legal and legitimate extractive industries.