What is 'narco-mining' in the Amazon region?

Narco-mining refers to the connection between illegal gold mining and drug trafficking, where profits from one are used to finance and launder the other.

How has the COVID-19 pandemic affected cocaine production in Peru?

The pandemic accelerated the spread of illegal gold mining and coca production by empowering organized crime during lockdown and pushing people into informal work.

Why is illegal gold mining a lucrative asset for drug cartels?

Illicitly mined gold, once refined, is difficult to trace and indistinguishable from legitimate gold, making it a safer and more lucrative way to launder drug money.

Home / Crime and Justice / Gold Fever Fuels South America's Drug Crisis

Gold Fever Fuels South America's Drug Crisis

22 Nov, 2025

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Summary

Illicit gold mining is now a larger economy than cocaine in Peru.
The pandemic accelerated the spread of illegal mining and coca production.
Criminals launder drug money through untraceable, refined gold.

Gold Fever Fuels South America's Drug Crisis

A potent combination of illicit gold mining and coca cultivation is driving a significant increase in cocaine production across the Amazon region. This "narco-mining" phenomenon is particularly pronounced in Peru, where the illegal gold economy has surpassed the cocaine trade in value. Criminal organizations are leveraging the high price of gold to invest drug trafficking profits, using the refined metal as a more easily laundered asset.

The COVID-19 pandemic exacerbated this crisis, as lockdowns provided criminal groups with opportunities to expand their territorial control and coca cultivation. Many individuals, forced into informal economies, turned to illegal occupations for income, further empowering these illicit operations. Gangs are utilizing existing smuggling routes and logistical networks for both drugs and gold extraction.

This nexus of crime extends across borders, involving powerful groups like Brazil's Comando Vermelho and Colombian FARC dissidents, who control production and distribution. The issue is compounded by corruption and political instability in producer countries, weakening law enforcement and creating fertile ground for transnational criminal enterprises.