African Gold Smuggling Grows. And It Passes Through Dubai

There is a huge illegal market that we knew almost nothing about until now. It originates from artisanal and informal mines in Africawhere the exploitation of the weakest and health risks are the order of the day; it passes through a few countries, first and foremost United Arab Emiratesand from there it legally enters the international market. Potentially, even in Italia. This is about theAfrican gold.

African Gold Production: Data Revealed by Swissaid

The humanitarian foundation Swissaid has been working for three years to reconstruct the routes of thegold from 54 African countries between 2012 and 2022. The numbers are shocking. Africa, in fact, is a heavyweight in gold production, with a total of between 991.4 and 1,144.6 tons in 2022. A share that, depending on the estimates, ranges from a quarter to a third of the global total.

The artisanal and small-scale mining of the Continent extract more than half of it; but, in 72-80% of cases, without a declaration of origin. All things considered, therefore, clandestine production is around between 321 and 474 tons of gold per year, for a commercial value which, at current prices, is between 23.7 and 35 billion dollars. Overall, 32-41% of African gold is of illegal origin (including that produced on an industrial and semi-industrial scale). In the three leading states by volume, that is Ghana, Mali and South Africainformal production far surpasses legal production.

Inhumane working conditions in African informal mines

In the world, Swissaid always reports, gold mines employ more than one hundred million people. On the one hand, however, there are the deposits owned by the grandi corporation; they are not free of critical issues in terms of environmental and safety but, at least, they are managed in a professional manner. For a large portion of the population, however, the only way to earn a living is to dig in the small artisanal mines.

Mines where workers – even very young ones, even children – crawl into cavities up to 50 metres underground, breathing for hours toxic dustin semi-darkness and with poor air exchange. Often without even wearing gloves, helmets or protective glasses. Mines where the mercurio to separate the precious metal from other sediments: it is polluting and dangerous for human health, but it is cheap. Furthermore, in the absence of a license, gold cannot even enter the legal circuits and must therefore be sold below cost.

UAE as hub in international gold smuggling African

But what happens to African gold? It is very rare that it remains in its country of origin and, when it remains on the continent, the first buyer is the South Africa. But the vast majority is exported elsewhere. Taking into account the export of gold extracted from industrial and artisanal mines, whether legally or illegally, we discover that 80% ends up in just three countries: India (12% of the total), Swiss (21%) but above all United Arab Emirates which, alone, represent 47% of the total.

Between 2012 and 2022, 2,569 tons of gold entered the UAE borders that had not been declared for export to the African countries where it had been mined. Its total value, calculated on the basis of average prices for the eleven years considered, is $115.3 billion. In 2022 alone, 66.5% of the gold that the Emirates imported from Africa was contraband. We are talking about 405 tons. That is, the absolute majority of the total. smuggled from Africa in the same year. Which according to Swissaid exceeds the 435 tonsmore than one per day, for a commercial value of 30.7 billion dollars. A market that more than doubled between 2012 and 2022.

Emirati and Swiss gold that actually comes from Africa

It is no coincidence that Dubai has been renamed the “city of gold”, with its twenty or so refineries and its 7 thousand traders of precious stones and metals. Once refined in this transit country, gold is ready to leave for other destinations around the world, first of all Switzerland, Türkiye, Hong Kong and India. Taking advantage of the fact that various legislations, including the Swiss one, consider the last place of processing as place of origin. An intermediate stage that therefore erases with a stroke of the sponge the real origin of the goods, allowing them to be exchanged in legal circuits without any problem.

E It cannot be ruled out that even in Italia gold circles extracted in clandestine African mines, suggests to the newspaper Il Fatto Quotidiano Marc Ummelco-author of the Swissaid report. Our country, with its historic gold districts of Arezzo, Valenza, Vicenza, Milan and Campania, is among the main importers of gold in the European Union, together with Belgium. The main supplier countries? Switzerland and United Arab Emirates.