Illegal gold mining has overtaken drug trafficking as Peru’s most profitable illicit industry, with soaring gold prices fuelling the expansion of criminal mining operations across the Amazon.
In the Madre de Dios region, illegal mining has caused extensive rainforest destruction, including more than 500 hectares inside the Tambopata National Reserve over the past year. Overall, mining has destroyed more than 140,000 hectares in the region.
The illegal gold trade is estimated to be worth as much as $18 billion in 2026. In the first half of the year, illegal gold mining reportedly surpassed legal gold production in value, underscoring the scale of the underground industry.
The surge has attracted organised crime groups and created new challenges for authorities. Unlike cocaine trafficking, the final product can enter legitimate international markets, making illegally sourced gold more difficult to detect and trace.
Environmental damage has also intensified. Miners use mercury to extract gold from sediment, contaminating waterways and threatening communities that depend heavily on freshwater fish. An estimated 180 tonnes of mercury enter Peru’s waterways each year.
Authorities have stepped up military operations, destroying and seizing mining equipment, but officials acknowledge that enforcement remains difficult. Much of the illegal gold is smuggled through neighbouring countries or enters legitimate supply chains through Peru’s informal mining registration system.
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