Gold Rush Sparks National Chaos, Threatens New Crisis

JAKARTA, CNBC Indonesia — A gold rush in Brazil has caused chaos, particularly in the Adat Bau region of Pará state in the Amazon rainforest. Indigenous chief Bepdjo Mekragnotire, wearing a red feather headdress, led efforts to expel nearly 200 illegal miners over the past four years. ‘The miners are stubborn. They enter by any means necessary. Gold prices are currently very high,’ said Bepdjo, quoted by AFP on Friday, 29 May 2026. ‘We must expel them, otherwise they will keep breaking in,’ he added. Gold prices have reached record highs amid global instability, driving illegal miners into relatively untouched areas like Bau. In February alone, weapons were brandished on both sides when Bepdjo and a group of Kayapo warriors confronted miners on a canoe. He stated they expelled 24 individuals. ‘We don’t know how many miners are inside; we just arrived and saw,’ he added. Amazon Mining Watch reports that 223,000 hectares have been affected by mining in Brazil between 2018 and 2025, with nearly 80% of it illegal. Mining activities ran rampant under former President Jair Bolsonaro, who fostered an environment of impunity in the Amazon. Since President Luiz Inacio Lula da Silva took office in 2023, the government has cracked down on illegal mining, but efforts remain incomplete. Mining entrepreneurs have adapted quickly, shifting from artisanal operations to multi-million-dollar ventures using heavy machinery and small aircraft fleets. The government describes the ‘new gold rush’ as fueling illegal mining across the Amazon. ‘Miners are retreating deeper into the forest,’ said Nilton Tubino, appointed by Lula’s government to lead indigenous territory protection operations. ‘We constantly struggle with the challenges posed by this vast territory… and the organisation’s capacity to quickly rebuild what we have destroyed,’ he added. Brazil is working on new legislation to strengthen gold tracking, alongside police initiatives such as an ‘emerald DNA’ library to trace ore back to specific Amazon locations. However, the Escolhas Institute warns that government crackdowns have triggered a new crisis: gold previously exported legally is now being smuggled through countries like Guyana or Venezuela. Other loopholes exist for ‘washing’ gold, such as ‘ghost mines’ — sites with artisanal mining permits that claim to sell gold but show no visible activity when viewed from above. Danicley de Aguiar, Greenpeace Brazil’s campaign coordinator, said gold extracted from protected areas is likely laundered through such schemes. Brazil produced 71 tonnes of gold in 2025, exported to Canada, Switzerland, and the UK. Meanwhile, Fernando Lucas, president of the Para Gold Miners Cooperative Federation, expressed frustration over miners being labelled ‘criminals’. He said many wish to operate legally but are trapped in bureaucracy, calling for a more organised and sustainable model.