Georgetown, Guyana — Guyana has suspended gold mining licenses of 107 Brazilian permit holders and threatened deportation of more than 100 Brazilians as part of a crackdown on suspected gold smuggling, according to the Associated Press.
The Geology and Mines Commission said it acted after accusing the miners of producing large amounts of raw gold but not declaring or failing to sell most of it to the government or authorized buyers. Authorities said some miners were using powerful river and land dredges in the Amazon jungle and sending production back to Brazil while ignoring local laws requiring sales to a state-run gold board and buyers with state permits.
The commission announced late Monday the immediate suspension of licenses it said had been awarded to 107 miners. Commissioner Newell Dennison told AP on Tuesday that summonses were sent to all permit holders, adding, “come in to us and let us examine their records.” He said that if they do not come, the commission will suspend operations because, when it tries to reach some of the miners to discuss compliance, “the information they have given us usually proves to be bogus.”
AP reported that the commission is acting on an edict issued by President Irfaan Ali late last week. The edict gave miners 24 hours to comply or face license suspension and deportation from the South American nation. Gold is Guyana’s number two foreign exchange earner after offshore oil, AP said.
Both the commission and a miners association told AP it is unclear how many thousands of Brazilians operate in the sector. AP said much of the work occurs in remote western and southwestern areas near the Brazilian border, with miners crossing with little or no state oversight.
Previous studies by Guyana’s special organized crime unit suggested that up to 15,000 troy ounces of gold are smuggled out of the country weekly to Brazil. AP said the studies described a route that runs through the river border with Suriname before the gold is moved on to the United States, Europe and the Middle East.
The report also pointed to related U.S. enforcement. In mid-2024, the U.S. Treasury sanctioned Guyanese businessmen Nazar and Azruddin Mohamed for allegedly smuggling more than 22,000 pounds (10,000 kilograms) of gold to the U.S. AP said the Treasury alleged the operation evaded more than $50 million in taxes.
AP said the father-and-son duo were fighting extradition efforts to the U.S. after a South Florida grand jury indicted them late last year on charges linked to mail fraud and money laundering. AP reported that Azruddin Mohamed formed a political party in May that won 16 of the 65 seats in general elections in September, and that he was waiting to be sworn in as the opposition leader while awaiting an extradition verdict.
The AP report cited figures on formal declarations in Guyana, saying gold declarations for 2024 reached 423,000 troy ounces compared with 641,828 ounces in 2019. It also said global gold prices have risen sharply in recent years, hovering around $4,500 per ounce—an environment that, AP reported, has contributed to increased production activity elsewhere.