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Friday, Apr 18, 2025
Mugglehead Investment Magazine
Alternative investment news based in Vancouver, B.C.
Death toll raises after illegal gold mine collapses in Suriname
Death toll raises after illegal gold mine collapses in Suriname
French Guiana state services sent help to Suriname in sight of the mine collapse. Photo via Official account of the State services in the Guiana region.

International

Illegal gold miners buried after Suriname mine tunnel collapses

Rescue operations were predominantly conducted by fellow miners, as government rescuers faced delays in reaching the scene

At least 14 lives have been lost in the wake of a devastating collapse within a gold mine in Suriname. Seven miners are still missing.

The tragic incident unfolded on Tuesday approximately 100 kilometres south of Paramaribo, in the Brokopondo district, close to the Atlantic Ocean coast. Reports suggest that around 20 illegal gold miners were trapped when an improvised tunnel inside the Rosebel mine collapsed.

The area and mine are owned by the Chinese miner Zijin Mining (SHA: 601899) and have been under scrutiny for illegal trespassing. Concerns about safety had been previously reported to authorities.

According to local reports, the company had been meeting with government officials just hours before the accident to address illegal mining in the area. The company had filed an eviction request with the government to remove illegal camps and order people to leave the site. Several hundred miners are believed to be working in the area.

Right after the accident, Suriname’s President, Chandrikapersad Chan Santokhi expressed his condolences as he confirmed the loss of ten lives and warned that this number might rise as rescue operations progress.

President Santokhi assured the nation that efforts to rescue those trapped were underway and acknowledged the possibility of seeking international assistance.

“We continue to study possible options, and if necessary, we will request assistance from Brazil,” Santokhi said during a speech. He added that the accident happened where a gold vein was previously discovered.

The mine was originally owned by Rosebel Gold Mines but was acquired by Zijin Mining in February of this year. Formerly owned by the Canadian company IAMGOLD Corp. (NYSE: IAG).

Rosebel changed hands after a clash between miners and the police prompted its sale.

Read more: Calibre Mining secures largest undeveloped gold resource in Atlantic Canada through $345M Marathon Gold merger

Read more: Calibre Mining reports record year-to-date earnings in Q3 financials

Illegal mining has increased in South America over the past decade

Illegal mining primarily involves the extraction of gold, which is sold at high prices in the transnational market. This practice is carried on by criminal groups which are often linked to drug trafficking.

Illegal mining causes severe environmental damage, such as deforestation and mercury pollution. It is also estimated that illegal mining generates up to $48 billion annually in criminal profits.

Latin America is particularly affected by this criminal activity, experiencing one of the highest rates of illegal gold extraction in the world. The growing demand for gold is an attraction factor for criminals in the region.

In a 2021 investigation, Reuters showed that some tunnels on its Buritica concession in Colombia are controlled by the Clan del Golfo crime gang, which buys output from informal miners.

Illegal mining causes deforestation, loss of biodiversity and habitats, as well as water, air, and soil pollution due to the release of toxic chemicals. Local communities also suffer from forced displacement, corruption, human rights violations, and health issues associated with illegal mining.

The high involvement of sophisticated criminal networks and the transnational dimension of illegal mining pose challenges for law enforcement, which sometimes lacks the necessary resources to combat this criminal threat effectively.

 

natalia@mugglehead.com

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