With Yanomami crisis, jewelers seek gold from mining companies – 02/12/2023 – Panel SA

After the exposure of the crisis of the Yanomami, affected by illegal mining, the mining giant AngloGold Ashanti says that it was approached by jewelers interested in buying gold directly from the mining company. Today, the company has a contract only with Vivara, since 2019, to sell gold directly, but the number could increase.

According to the company, the jewelry retailer has sought to increase the purchase of gold from mining companies that have the entire extraction chain certified by inspection bodies, considered safer.

The IBGM (Institute of Gems and Precious Metals, which brings together brands such as Vivara and HStern) also claims to have verified the movement. According to the president of the institute, Carla Pinheiro, the negotiations are still in their infancy and come up against issues such as taxation, distribution logistics and minimum purchase volume.

Currently, jewelry stores buy gold from DTVMs (dealers of bonds and securities). Despite having certifications, the process for issuing banknotes and gold traceability is still considered precarious.

The IBGM says it will seek, together with the federal government, a way to re-discuss taxation on gold operations and make the business with jewelry stores more attractive for mining companies. According to Pinheiro, the high value of a kilo of gold is another problem, as small brands find it difficult to spend around R$ 320,000 on a kilo of the metal, which encourages purchases in smaller quantities outside the mining companies.

Demand from jewelry companies in Brazil is still very low, less than 10% of mining companies’ extraction, according to the IBGM. Most are exported

According to Pinheiro, jewelry stores were not aware of the problem and were frightened by the explosion of illegal mining in Yanomami lands. She claims that the discovery of so-called “legalized” gold —maneuvering some DTVMs to clean the material extracted illegally— has raised the alarm in companies.

“The sector buys from DTVM, where gold is presumed to have a legal origin. Now, we discover that ‘legalized gold’ exists and we ask that it be completely legal. We begin to demand transparency, regulation and protocols from these DTVMs to be followed”, said the president of IBGM.

According to Lauro Amorim, vice-president of sustainability and corporate affairs at AngloGold, the mining company is committed to the proposal by Ibram (Brazilian Mining Institute) to move forward with the control of the origin of gold mined in the country. The organization’s idea is to increase the traceability of gold, which can help in the fight against illegal mining.

At AngloGold, the operation is carried out in Goiás and Minas Gerais with research, licensing, extraction and preservation of the area, according to the company.

Joana Cunha with Paulo Ricardo Martins It is Diego Felix

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