Image Courtesy of Ojo Publico
“The London Bullion Market is the union that sets the price of gold and concentrates
the biggest metal traders in the world.”
Ojo Publico, the well-respected online investigative journal based in Lima, Peru, recently reported on the companies financing the multi-million dollar trade of illegal South American gold in the article, Dirty Gold: Chasing the Trail Of the London Bullion Market.
These traders hail from the US, Switzerland, Italy, and the United Arab Emirates, and the kicker– some are ALSO members of the Responsible Jewelry Council (RJC), which is the only real third party auditing system for large companies in the jewelry industry. RJC, you had one job.
Ojo Publico’s investigation traces the routes of illicit gold trafficking in South America. It also takes a deeper look into how the companies from Switzerland, the US, Italy, and the UAE are responsible for the pollution and destruction of riverbeds in Bolivia that also affect rivers in the Brazilian rainforest, rivers and forests in Colombia, the Namija mountains of the border of Peru, as well as other vast areas of Peru. The damning report documents the amount of illegal gold being exported, where it’s coming from, and where it goes. OP investigators traveled to illegal mining camps in Hueptuhe and La Pampa, the largest illegal mining camps and area of deforestation in Peru. A boat trip up the Madre de Dios, Beni and Madeira rivers, discovered that Bolivian and Brazilian gold dredged there was exported illegally, mostly to the US. They found their way to mines in the mountains of the Cordillera del Condor, near the Peru-Ecuador border, where the gold is smuggled to the US. Peru, listed as the world’s fifth largest supplier of gold, exports such a large percentage illegally, that it’s likely it should actually be listed as the second largest supplier, after China. They were able to get in touch with some higher-ups in the importing companies from the US, Switzerland, and UAE, but most requests resulted only in promises to provide more information.
That this corruption is public knowledge with no consequence to their membership with the RJC is particularly disturbing. From the RJC website:
“RJC Members commit to and are independently audited against the RJC Code of Practices – an international standard on responsible business practices for diamonds, gold and platinum group metals. The Code of Practices addresses human rights, labour rights, environmental impact, mining practices, product disclosure and many more important topics in the jewelry supply chain.”
There are many questions still to be answered, but this report reveals an impressive amount of corruption destructive gold market.
Ojo Publico, reports on transnational organized crime, governmental corruption, threats to public interest, environmental issues, and human rights issues. You can read their in-depth report here. If you want to join the cause, fill out this petition telling the RJC to clean up its act.