UN: Increasing demand for gold and minerals is driving corruption

United Nations: Increasing demand for gold and minerals is driving corruption and instability in Africa and beyond.

The United Nations Office on Drugs and Crime (UNODC) which indicates that the rising demand for gold and critical minerals is fueling crime, corruption, and instability across the mineral supply chain, especially in Africa.

 The report titled "Minerals Crime: Illegal Gold Mining—part two of the Global Analysis on Crimes that Affect the Environment," suggests that organized crime groups, corporations, and individuals are increasingly engaged in illicit gold mining and trafficking. These activities are often linked to money laundering, environmental destruction, and human rights abuses.

Corruption is pervasive in the sector, affecting officials at various levels and contributing to the exploitation of artisanal miners who are often forced to sell gold below market prices or smuggle it across borders to avoid strict regulations. The situation is particularly concerning in the context of Africa's vast reserves of minerals essential for the global energy transition, such as cobalt, manganese, and platinum, which are frequently extracted through artisanal and small-scale mining (ASM) that is often connected to organized crime.

The report underscores the humanitarian consequences of illegal mining, including sexual exploitation, forced labor, and displacement of communities. It also emphasizes the environmental impact, with illegal mining practices leading to biodiversity loss, ecosystem damage, and public health risks.

To combat these issues, the UNODC calls for improved data collection and more robust legal frameworks. It stresses the importance of due diligence and traceability in the minerals trade, as well as stronger international cooperation to address the complex challenges posed by minerals-related crime. The report's findings underscore the urgent need for a comprehensive response to ensure the sustainable and ethical sourcing of critical minerals.