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Peru's Illegal Gold Trade Tops Region as Police Destroy Major Madre de Dios Camps

Seizures show active enforcement but do not address weak oversight, registry abuse and cross‑border laundering that sustain the illicit industry

Overview

  • Police environmental units destroyed illegal mining camps in Madre de Dios and confiscated machinery, boats and fuel valued at S/64.5 million during two coordinated operations, including large hauls in the Isla Córdova and Zorro Valencia sectors.
  • Analysts say the raids are short of a solution because illegal gold has grown into an organized criminal industry that now concentrates about 44% of South America’s illicit gold exports and was valued at an estimated US$12 billion in 2025.
  • Over the last decade the commercialization chain ballooned, with processing plants rising to about 13,876 and exporters to roughly 1,253, while exports of gold concentrate jumped to US$880 million in 2024.
  • The metal is moved in hard‑to‑trace forms—concentrate, powder, recycled metal and crushed e‑waste—which, together with gaps in destination‑country rules, lets illicit gold enter formal markets and hide its origin.
  • Experts warn that expanded use of the Reinfo formalization registry, weak enforcement capacity, reduced formalization budgets and limited intelligence‑led operations leave environmental damage, illicit profits and macroeconomic costs largely unchecked.