The Shadow of Gold:
The hefty cost of luxury

The hidden costs behind the frenzied pursuit of mineral wealth

By Georges R. Dupras

Edited December 9, 2024

Gold has captivated humanity since time immemorial, occupying a central place in our cultures and traditions. Its value has increased by about 3000% over the past fifty years, attracting investors and speculators alike. In 2024, the price of gold reached a historic peak of $2,788.54 US per ounce, even outperforming the S&P 500. This coveted precious metal is primarily concentrated in five regions of the globe: Southern Australia, China, South Africa, Peru, and the western United States. It is found in various forms, nestled in rocks, quartz veins, riverbeds, and their winding meanders.

In 2024, the price of gold reached a historic peak of $2,788.54 US per ounce, even outperforming the S&P 500.

The geographic distribution of gold resources raises particular concerns for Canadians. Indeed, although Canada is not among the main producers, it plays a central role in the global mining industry. Half of the headquarters of major mining companies are located on Canadian soil, closely tying the country to the environmental and ethical issues of gold extraction on an international scale.

All that glitters…

Recently I was asked to comment on global gold mining practices, and on a documentary called The Shadow of Gold. I was struck by the similarities that exist between that industry and others having a seemingly disproportionate impact on the natural environment. I am referring to the economics, transportation, environmental and health impact behind the production of gold, conflict diamonds, dirty oil (Bitumen) and others.

‘Gold extraction stands out for its particularly devastating impact on populations and the environment, even on a small scale.’

While these industries share certain commonalities, gold extraction stands out for its particularly devastating impact on populations and the environment, even on a small scale. Paradoxically, despite a superficial familiarity with the precious metals sector, most consumers are unaware of the true journey of the gold they wear, from its extraction to its transformation into jewellery. This lack of knowledge about the production chain often masks a reality far darker than the gleam of the precious metal would suggest.

Jewellery fashion show in China

Gold derived from corruption and conflict bypasses the banking system, generating massive unaccounted sums, likely in the billions of dollars. The lack of traceability in the supply chain and insufficient documentation facilitate large-scale money laundering. These illicit funds fuel terrorism and stoke civil wars, particularly in the Democratic Republic of Congo. In some South American countries, the value of illegal gold even surpasses that of drug trafficking. Whether in the gold industry or drug trade, the grip of criminal organizations exposes those involved to considerable risks: violence, environmental degradation, and death threats.

Perils of Gold Extraction

Gold mining ranks among the most hazardous professions, where miners’ safety is frequently sacrificed for profitability. Gold deposits, often located at dizzying depths, present substantial risks. In South Africa, for instance, the most significant gold vein is found more than three kilometres underground.

Gold miners in Peru

Despite the obvious dangers, essential protective equipment, such as respirators, is sorely lacking. This situation particularly affects the most vulnerable workers, predominantly impoverished immigrants. Exposed to harmful working conditions, they develop various lung diseases that compromise their ability to perform their jobs. Without access to medical care, these respiratory conditions often prove fatal, condemning these workers to a grim fate.

‘Gold extraction ranks among the most perilous professions, where miners’ safety is frequently relegated to the background.’

Mercury, recognized as the most potent neurotoxin for humans, is ubiquitous in the gold industry. Its use poses a danger not only to the miners who handle it directly but also to entire surrounding communities. As a global pollutant, it severely affects aquatic ecosystems, contaminating fish destined for consumption, including those used in the preparation of sushi, a favourite dish among many gourmets.

Alongside cyanide, mercury ranks among the most harmful substances to human health and ecological balance. These two compounds represent a major threat, with repercussions extending far beyond the extraction zones, affecting biodiversity and the food chain on a global scale.

The Impact on Indigenous Nations of the Amazon

Robert Lang‘s documentary The Rage of Gold highlights the profound upheaval experienced by Indigenous peoples in the face of a massive influx of prospectors. These communities emotionally express how their traditional way of life has been disrupted by this gold rush. They worry about the growing influx of miners, driven by economic necessity, who are overwhelming the fragile ecosystem of the Amazon basin.

‘Indigenous communities emotionally express how their traditional way of life has been disrupted by this gold rush.’

Their fears for the ecological balance of this region are far from unfounded. The Amazon basin, truly the green lung of the planet, spans a colossal area of 7.5 million square kilometres, representing nearly 40% of South America. This vast territory is home to the majestic Amazon rainforest, which alone covers 5.5 million square kilometres of tropical forests, an ecosystem of invaluable richness and biodiversity, now threatened by intensive gold mining.

Aerial shot showing the impact of artisanal mining on the Amazon Basin

The Amazon is a unique and vital ecosystem, a true cradle of biodiversity that supports a myriad of life forms – human, animal, aquatic, and plant. This exceptional environment plays a crucial role in the global ecological balance. However, its deforestation threatens not only its ability to produce the clean air we all depend on but also risks compromising one of the planet’s most important freshwater reserves.’

The Amazon is a unique and vital ecosystem, a true cradle of biodiversity that supports a myriad of life forms – human, animal, aquatic, and plant.’

The Amazonian Indigenous peoples, ancestral guardians of these lands, have been rooted there since time immemorial. They strive, like their ancestors before them, to nourish and educate their children, perpetuating age-old traditions. Yet, like their North American counterparts, they face a painful reality. The expulsion from their ancestral lands by successive waves of colonization threatens not only their way of life but also the fragile balance of this irreplaceable ecosystem.

The Impact in North America

The Mount Polley breach¹ in British Columbia starkly illustrates the inherent risks of mining operations. On August 4, 2014, a tailings dam failure released approximately 25 billion litres of mining waste into surrounding waterways, including Quesnel Lake, which flows into the Fraser River. This catastrophe, considered one of the worst in Canadian mining history, has had devastating and long-lasting consequences.

The toxic tailings, laden with heavy metals and fine sediments, contaminated the ecosystem, transforming a once-thriving region into a devastated landscape. A decade after the spill, scientists continue to detect elevated levels of copper in the waters, potentially affecting the growth, reproduction, and survival of fish populations, particularly Pacific salmon.

This disaster underscores that the risks associated with mining operations far outweigh the short-term economic benefits. Indigenous communities along the Fraser River, whose culture and livelihoods are intimately tied to salmon, have been particularly affected. The potential loss of the salmon industry threatens not only their traditional way of life but also the ecological balance of the entire region.

Industrial-scale mining

Zero return on investment for the poor

In open-pit gold mining operations, high-pressure water jets² are used to dislodge rocks containing tiny gold deposits. This devastating method resembles clear-cutting³, ravaging the environment in its wake. The outcome is alarming: to extract enough gold to craft a single wedding ring, this process generates about 20 tonnes of waste.

The consequences are disastrous for the exploited lands. The massive use of mercury and sulphur cyanide in the leaching process, aimed at recovering gold, renders these soils unsuitable for reforestation. The earth, sacrificed on the altar of profit, loses all capacity for natural regeneration.

‘The massive use of mercury and sulphur cyanide in the leaching process, aimed at recovering gold, renders these soils unsuitable for reforestation.’

Once the deposits are exhausted, these areas become ecologically sterile. Large mining companies, having extracted down to the last nugget, then abandon these devastated sites, leaving behind lunar landscapes and irreparably damaged ecosystems. This practice of intensive exploitation and subsequent abandonment illustrates the blatant disregard for environmental sustainability in the gold industry.

Economic greed trumps human rights

Over the past half-century, the value of gold has skyrocketed, climbing by about 3000%. Paradoxically, new gold discoveries remain limited, with only 160 tonnes unearthed globally. This growing scarcity only fuels the frenzy surrounding this precious metal.

Gold mining has evolved considerably since the era of American prospectors in the mid to late 1800s. Although their methods left traces still visible today, notably through the clearing of vast wooded areas, their impact on the environment was relatively limited compared to current practices.

‘Gold mining has evolved considerably since the era of American prospectors in the mid to late 1800s.’

The discovery of massive deposits has radically transformed the industry. Modern extraction now mobilizes an armada of heavy machinery, aggressive chemicals, and advanced technologies. This large-scale industrialization has exponentially increased extraction capacity, but also the scale of environmental and social damage.

This frenzied gold rush tragically illustrates how the pursuit of profit can eclipse human and ecological considerations, sacrificing the rights of local populations and the integrity of ecosystems on the altar of profitability.

In the Democratic Republic of Congo, the Artisanal Gold Council is helping miners eliminate mercury

The gold industry is not condemned to environmental destruction. Ethical and sustainable gold production, beneficial for both investors and Indigenous communities, is not only possible but already underway.

‘Ethical and sustainable gold production, beneficial for both investors and Indigenous communities, is not only possible but already underway.’

This responsible approach is distinguished by the absence of harmful chemicals and respect for topsoil, thus preserving ecosystems. These initiatives, often led by small family businesses, are part of a transparent economy, with financing flowing through the traditional banking system.

Towards a More Responsible Future

Transforming the gold industry requires collective awareness, patience, and firm commitment. Every consumer must question the origin of the gold they purchase, even for small quantities. This approach is not a constraint, but an opportunity to reject current destructive practices.

By adopting this responsible attitude, we encourage the emergence of a viable market for fair trade gold. This new paradigm is based on artistic creation, personal expression, and respect for both producers and the environment. Thus, we can shape a gold industry that shines not only for its brilliance but also for its ethics and sustainability.

Note: Information taken from The Shadow of Gold by Robert Lang and other sources

1. Reservoirs used to contain spent liquids (drainage) from the mining process
2. Aqua jets that can strip hillsides of trees and remove rich topsoil
3. Washes away topsoil prior to the use of chemicals.

Feature image: gold jewellery in Shenzen, China
All images are frames from The Shadow of Gold, courtesy of Kensington Communications and Films à Cinq.

Other articles by Georges Dupras
Other recent articles