Organized Crime and the Environmental Gold Rush in South America
South America’s mineral wealth has always been a source of opportunity, but today it is also a source of profound instability. Across the continent, organized criminal groups have turned illegal mining—especially gold—into one of the most profitable environmental crimes in the world. This shift is transforming economies, destroying ecosystems, and fueling violence on a scale that rivals the narcotics trade.
From Cocaine to Gold: A Strategic Pivot
For decades, drug cartels dominated the criminal economy of South America. Cocaine was king, and entire regions were shaped by its production and trafficking. But as global gold prices soared—reaching an unprecedented USD 3,500 per ounce in 2025, nearly five times higher than in 2008—criminal organizations began to diversify. Gold offered advantages that narcotics never could: it is legal once laundered, easy to transport, and extremely valuable. Unlike cocaine, gold can slip seamlessly into legitimate supply chains, making it the perfect commodity for organized crime.
The Scale of Illegality
Illegal gold mining is no longer a marginal activity. According to INTERPOL and UNEP, it generates USD 48 billion annually worldwide. In South America, the numbers are staggering. In Peru, illegal gold accounts for 40 percent of national production, worth an estimated USD 12 billion per year. Ecuador saw illicit gold revenues between USD 800 million and 1 billion in 2022, facilitated by more than 500 shell companies created in just three years. Colombia is even more alarming: 85 percent of gold exports are illegal, and 70 percent of extraction is controlled by armed groups. These figures reveal a criminal economy that rivals, and in some cases surpasses, traditional narcotics trafficking.
Hotspots of Criminal Control
The geography of illegal mining tells its own story. In Venezuela, the Arc Minier de l’Orénoque covers 12 percent of the country and has become a lawless zone dominated by “sindicatos” and guerrilla groups such as the ELN and FARC dissidents. Extortion rates reach 30 percent, and reports include trafficking of children as young as nine. In Peru’s Madre de Dios region, more than 100,000 hectares of forest have been destroyed, mercury poisoning is rampant, and the government declared a state of emergency in 2024. Violence is escalating: in May 2025, 13 security guards were killed in Pataz during an ambush by the gang known as Poderosa. Colombia’s Buriticá mine is another flashpoint, where the Clan del Golfo and ex-ELN factions dominate tunnels, causing mercury contamination and bloody clashes. In Brazil, the Tapajós basin has become synonymous with illegal dredging, human trafficking, and sexual abuse, while in Amazonas and Roraima, gangs like Comando Vermelho and PCC control river routes and clandestine airstrips. Their presence expanded from 260 municipalities in 2024 to 344 in 2025, a sign of their growing territorial grip.
Networks Behind the Gold
The actors driving this criminal economy are as diverse as they are ruthless. Comando Vermelho, Brazil’s most powerful gang, now controls half of Amazonian municipalities and partners with Peruvian and Colombian cartels. Its rival, the First Capital Command (PCC), manages logistics and clandestine airstrips to sustain operations. In Venezuela, ELN and FARC dissidents finance their activities through coltan, tungsten, and gold, while Colombia’s Clan del Golfo invests heavily in alluvial mining and extortion schemes. These groups use violence, corruption, and sophisticated laundering networks to integrate illegal gold into global supply chains, making it nearly impossible to distinguish illicit metal from legitimate exports.
The Human and Environmental Cost
The human toll is devastating. In Venezuela, 149 people have died in mining conflicts over the past four years, with reports of decapitations and mutilations. Ecuador’s homicide rate surged by 574 percent, reaching 47.25 per 100,000 inhabitants in 2023. Brazil recorded 8,603 murders in the Amazon region in 2023, a rate of 32.3 per 100,000, largely linked to gang expansion. Peru’s massacres, such as the Pataz attack, highlight the growing militarization of illegal mining zones. Meanwhile, the environmental consequences are catastrophic: deforestation, mercury contamination, and biodiversity collapse threaten ecosystems and indigenous communities. In Madre de Dios alone, mercury levels in rivers have reached toxic thresholds, poisoning wildlife and human populations alike.
Why This Matters
Environmental crime is no longer a fringe issue—it is a strategic threat. It destabilizes regions, funds armed groups, and accelerates ecological collapse. For businesses, NGOs, and governments, understanding these dynamics is critical to designing effective risk mitigation strategies. The fight against illegal mining is not just about protecting forests; it is about safeguarding governance, human rights, and global security.
Green Ghost Insight: Combating this threat requires advanced OSINT and GEOINT capabilities. Mapping illegal mining hotspots, tracking supply chain anomalies, and analyzing criminal networks are essential steps to anticipate risks and protect both ecosystems and corporate integrity.