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Major US financial services firm StoneX has reportedly purchased millions of dollars’ worth of gold from a company allegedly connected to illegal mining operations in the Amazon rainforest, as revealed by investigative reports from The Bureau of Investigative Journalism and Repórter Brasil. Documents suggest that a Brazilian supplier for StoneX sources gold from a network of informal miners, some of whom have been sanctioned by Brazil’s environmental agency. The Amazon, a vital shield against climate breakdown, has seen a surge in unregulated "wildcat" mining due to soaring gold prices, driven by global economic uncertainty and geopolitical tensions.
Click through the gallery to find out more about the shadowy supply chain of metal trade.
The allegations against StoneX trace back to a September 2023 incident when customs officers in São Paulo intercepted a US$4.6 million shipment of gold.
The cargo was bound for a StoneX subsidiary in Dubai and has since drawn attention to the company’s links with suppliers allegedly involved in illegal mining and environmental violations in the Amazon rainforest.
Coluna, the supplier tied to the intercepted gold shipment, filed a legal challenge seeking the release of the $4.6 million cargo. In the process, the filing exposed a vast network of wildcat miners operating across the Amazon, further linking the controversial gold supply chain to illegal mining activities and environmental destruction.
Wildcat mining activity in Brazil saw a significant increase following Jair Bolsonaro's presidency in 2019. This surge has been closely associated with toxic pollution, the destruction of Indigenous lands, and heightened threats to local communities.
In 2023, the new Brazilian government implemented robust measures to address the issue of wildcat mining. Key reforms included the digitization of invoices—a step that significantly enhanced the traceability of supply chains.
Despite reforms, the origin of gold from the Amazon remains difficult to pinpoint. Wildcat miners, who are not authorized to export gold directly, rely on a web of intermediaries to sell their produce.
These intermediaries, in turn, supply a small group of precious metal exporters sanctioned by Brazil’s central bank, complicating efforts to map the supply chain and ensure ethical sourcing.
Ane Alencar, director of science at the non-governmental organization Instituto de Pesquisa Ambiental da Amazônia (IPAM), emphasized the ease with which illegally mined gold infiltrates the formal system.
Alencar stressed the importance of making gold traceable, highlighting a critical step toward addressing environmental destruction and ethical concerns in the Amazon's gold supply chain.
In response to the allegations, StoneX stated that it is a responsible participant in the global precious metals industry and affirmed that "it follows stringent policies and procedures to verify the legitimacy of the origins of all precious metals it purchases."
StoneX clarified that the gold shipment blocked in Brazil had already entered the country's banking system before the company acquired it.
The company further emphasized that it had obtained all necessary certificates of origin and supporting documentation as part of its due diligence process, underscoring its adherence to regulatory requirements.
StoneX stated that Coluna, its Brazilian supplier implicated in the controversy, is licensed by Brazil’s Central Bank and continues to export gold. However, when approached for comment regarding the allegations and its operations, Coluna did not provide a response.
Documents submitted by Coluna to authorities reveal nearly 1,200 invoices from wildcat miners directed to two intermediaries that supply the company. Over 12.2 kg of the invoiced gold—valued at more than 2.9 million Brazilian Reais (US$614,471)—was tied to environmental crimes.
Over 200 of the invoices submitted by Coluna trace back to a wildcat cooperative that was fined R$2.2 million (approximately US$450,000) in 2022. The penalty was imposed for a range of environmental crimes, including deforestation, unauthorized operations on protected land, and mercury contamination.
Mercury, frequently used in the gold extraction process, is a highly toxic substance with devastating environmental consequences. Its misuse can contaminate local water supplies, endanger aquatic life, and cause long-term harm to surrounding ecosystems.
Ana Claudia Vasconcellos, a researcher at the Joaquim Venâncio Polytechnic School of Health in Rio de Janeiro, explained that mercury-contaminated fish do not remain confined to the mining areas but can spread its effects up to 100 kilometers (63 miles) away.
The use of mercury in gold mining in Brazil is strictly regulated and only permitted with a valid license, adhering to national guidelines. However, one of the fines imposed on the wildcat cooperative was linked to the unlawful acquisition of 100 kilograms (220 pounds) of mercury.
Another instance of mercury misuse was documented in the production of at least 148 kilograms (326 pounds) of gold, which violated Brazil’s environmental regulations. This case underscores the persistent challenges of enforcing compliance in the gold mining sector.
Coopemiga, the cooperative involved in the Amazon gold controversy, informed Repórter Brasil that it implemented a management overhaul at the close of 2023. The organization stated that it is gradually adopting safer and more environmentally sustainable techniques for gold extraction.
Following the 2022 investigation, StoneX highlighted its membership in the London Bullion Market Association (LBMA), an organization that advocates for the responsible sourcing of precious metals and establishes industry standards for ethical practices.
Alan Martin, the head of responsible sourcing at the London Bullion Market Association (LBMA), emphasized the organization’s commitment to ethical practices.
Alan Martin stated that LBMA actively investigates any potential violations brought to its attention, and noted that Brazilian authorities are still conducting their investigation into the blocked gold cargo tied to Coluna, with no definitive findings of wrongdoing reported so far.
Martin explained that LBMA, in its preliminary investigation, has not found evidence of any violations of its rules by members. He also acknowledged the complexities and challenges posed by wildcat miners in the Brazilian Amazon.
While StoneX's Dubai operation was the official recipient of the US$4.6 million gold consignment blocked in Brazil, it was revealed that the gold was intended to be transported via a Swiss International Air Lines commercial flight to Zurich.
The Bureau of Investigative Journalism's analysis of trade records reveals intricate gold trade patterns involving StoneX’s operations. The company’s Dubai branch frequently moves gold directly from Switzerland to Turkey, bypassing the UAE.
Mark Pieth, a lawyer and author of 'Gold Laundering,' highlighted that a cargo’s actual destination often differs from its listed one. “In this world of transit trade,” he remarked, “goods often travel in one direction, while the accompanying paperwork takes an entirely different route.”
In just one year, StoneX’s Dubai branch facilitated the transportation of over US$400 million worth of gold from Switzerland to refining companies in Turkey. These firms either process the metal into bullion, a form of high-purity gold frequently held by banks as a reserve asset, or sell it to jewelry manufacturers.
The Istanbul Gold Refinery claims that it has not purchased any gold doré—unrefined gold bars—from StoneX sourced from Brazil. At the same time, Swiss International Air Lines emphasized that it upholds the highest security standards and strict adherence to trade regulations in handling sensitive cargo like gold.
Sources: (The Bureau of Investigative Journalism) (Repórter Brasil) (LBMA) (EPSJV)
See also: An indigenous tribe's struggle to protect their land in the Amazon
Wildcat mining, locally known as "garimpo" in the Brazilian Amazon, involves small-scale gold extraction activities mostly carried out in isolated areas. Operating outside legal systems, these mining practices result in significant environmental destruction, such as deforestation and mercury contamination, as well as social repercussions for communities nearby.
The dark side of the Brazilian gold trade
From “wildcat” miners to corporate giants
LIFESTYLE Mining
Major US financial services firm StoneX has reportedly purchased millions of dollars worth of gold from a company allegedly connected to illegal mining operations in the Amazon rainforest, as revealed by investigative reports from The Bureau of Investigative Journalism and Repórter Brasil.
Documents suggest that a Brazilian supplier for StoneX sources gold from a network of informal miners, some of whom have been sanctioned by Brazil’s environmental agency. The Amazon, a vital shield against climate breakdown, has seen a surge in unregulated "wildcat" mining due to soaring gold prices, driven by global economic uncertainty and geopolitical tensions.
Click through the gallery to find out more about the shadowy supply chain of metal trade.