Swiss vetoed gold from the Amazon and put pressure on Brazil

RIO DE JANEIRO, BRAZIL – In a decision that reveals the growing trade measures that may be taken against Brazil in the face of pressure from indigenous and environmental groups, Swiss gold refiners have announced their commitment to bar any metal import from indigenous territories in the Amazon.

The companies also criticized the bill that would expand the possibility of mining in prohibited areas, an initiative backed by the government of Jair Bolsonaro (Liberal Party – PL).

The Swiss-based companies are the largest refiners in the world, including Valcambi and Metalor. But the transit of gold through Switzerland is questioned for its lack of transparency.

Officially, Switzerland is the second-largest gold importer in the world. But entities criticize the decision not to detail the origin of each of the shipments.

The gold enters the international market from its refineries, already certified. Switzerland is the world’s largest gold exporter. But the accusations are that this illegal gold is mixed with the metal of legal origin and, thus, enters the global trade.

In the Brazilian case, Switzerland represents the second-largest destination for gold sales, with a trade of US$1.2 billion.

One-fifth of this gold would come from the Amazon region. In one of the preparatory meetings for the agreement, indigenous leaders were harsh.

“The gold that comes here is full of blood,” said Maria Leusa Munduruku, president of the Munduruku Wakobor Association.

The new agreement was closed with the participation of Brazilian indigenous people and entities such as Xingu Vivo para Sempre and APIB, which sent a delegation to Europe.

The hope now is that the commitment by the world’s largest gold trading center will undermine the profits from illegal mining. The measure was considered a victory for the indigenous groups.

But, according to people involved in the negotiating process, everything will depend on how the companies will implement measures to control this import. Today, the agreement is voluntary and not legally binding.

In a press release, the Swiss Association of Manufacturers and Traders of Precious Metals states that:

1. Condemns all illegal mining, including that in indigenous areas of the Amazon region

2. The uncontrolled use of mercury is irreparably destroying the habitat of indigenous peoples and must be stopped.

3. The Brazilian government must protect the indigenous population as well as the environment and ensure that violence against the indigenous population by illegal mine operators is stopped.

4. Indigenous and traditional communities must have the right to free, prior, and informed consultation and consent on projects affecting their territory, their environment, their economic, social, and cultural rights, and their customs;

5. The signatories are also aware of the popular and indigenous opposition to bill PL191/2020 that would open indigenous lands to mining and other commercial activities.

In light of this situation, the refineries announce:

• Their commitment not to handle gold from indigenous territories in the Brazilian Amazon and to take the technically and humanly possible measures necessary not to take, import, or refine illegal gold, including that from Brazil, tracking and identifying this gold;
• To condemn and reject any mining activity linked to the protected areas of the Amazon without the free, prior, and good faith consent of the impacted communities;
• Their critical assessment and fundamental concerns regarding the negative effects of PL191/2020.

With information from UOL

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