Journal Article

Gold Mining in the Peruvian Amazon: Global Prices, Deforestation, and Mercury Imports

Swenson, Jennifer J., Delgado, Cesar I., Carter, Catherine E., Domec, Jean-Christophe

2011

Overview

Many factors such as poverty, ineffective institutions and environmental regulations may prevent developing countries from managing how natural resources are extracted to meet a strong market demand. Extraction for some resources has reached such proportions that evidence is measurable from space. We present recent evidence of the global demand for a single commodity and the ecosystem destruction resulting from commodity extraction, recorded by satellites for one of the most biodiverse areas of the world. We find that since 2003, recent mining deforestation in Madre de Dios, Peru is increasing nonlinearly alongside a constant annual rate of increase in international gold price (∼18%/yr). We detect that the new pattern of mining deforestation (1915 ha/year, 2006-2009) is outpacing that of nearby settlement deforestation. We show that gold price is linked with exponential increases in Peruvian national mercury imports over time (R(2) = 0.93, p = 0.04, 2003-2009). Given the past rates of increase we predict that mercury imports may more than double for 2011 (∼500 t/year). Virtually all of Peru's mercury imports are used in artisanal gold mining. Much of the mining increase is unregulated/artisanal in nature, lacking environmental impact analysis or miner education. As a result, large quantities of mercury are being released into the atmosphere, sediments and waterways. Other developing countries endowed with gold deposits are likely experiencing similar environmental destruction in response to recent record high gold prices. The increasing availability of satellite imagery ought to evoke further studies linking economic variables with land use and cover changes on the ground.

• Publisher: Public Library of Science,Public Library of Science (PLoS)
• Subject: Aeronautics / Biodiversity / Biology / Business metrics / Cellular Biology / Commerce - economics / Commodities / Conservation of Natural Resources / Contamination / Data mining / Deforestation / Destruction / Developing countries / Earth Sciences / Economic factors / Environmental changes / Environmental degradation / Environmental education / Environmental impact / Environmental impact analysis / Environmental impact assessment / Environmental law / Environmental regulations / Geography / Gold / Gold - economics / Gold industry / Gold mines & mining / Impact analysis / Imports / Institutions / International economic relations / International trade / Internationality / Land use / Laws, regulations and rules / LDCs / Life Sciences / Mercury / Mercury - economics / Mercury surface / Mining / Mining - economics / Multilingualism / Natural resources / Permits / Peru / Poverty / Prices and rates / Remote sensing / Satellite Communications / Satellite imagery / Satellites / Sediments / Time Factors / Topography / Waterways