Illegal Gold Mining: A Growing Threat to the Peruvian Amazon

Illegal gold mining has become one of the biggest threats to the Peruvian Amazon and important region to the world because of its role in regulating the climate and its extraordinary biodiversity. This illicit activity is expanding rapidly across several departments in the region, including Loreto, Madre de Dios, Amazonas, Huánuco and San Martín, and has already affected more than 30 districts in the country.

Distinguishing informal mining —which is undergoing a legal formalization process, from illegal mining—which operates entirely outside the law, often operating in prohibited areas using toxic substances and disregarding environmental and safety regulations—is crucial.

A highly profitable but deeply destructive activity

Illegal gold extraction is an extremely lucrative business. A single dredge can generate over USD 135,000 per month, which explains the rapid growth of this illicit trade. However, behind this profitability lies a trail of increasingly severe environmental, social, cultural and economic destruction.

In recent years, the situation has particularly worsened in Loreto, Peru’s largest department, whose geography facilitates the expansion of illegal mining along its rivers. While oil extraction was historically the main economic driver in Loreto, illegal mining has shown steady growth, fueled by rising gold prices, weakened territorial control and unclear formalization policies.

Today, much of this activity is concentrated in the Nanay River basin, one of Loreto’s five major watersheds and the main water source for its capital, Iquitos. By the end of 2024, 210 dredges were operating there out of the 280 identified across the department.

Criminal networks and weakened state control

Illegal mining in Loreto is not an isolated activity. It is closely linked to broader criminal networks and other illegal economies controlled by transnational criminal organizations. These groups influence public decision-making through political pressure, media manipulation and corruption.

Between 2021 and 2024, 25 legislative bills related to informal mining were submitted, 23 of which promoted the deregulation of the sector and weakened the state's ability to control it. While Loreto has not yet experienced full state capture, there are growing concerns that certain private interests are shaping public policies to their advantage.

Impact on communities

The expansion of illegal mining impacts local populations and Indigenous communities directly. While some communities maintain effective territorial control and denounce illegal activities, others have become involved, either by providing labor or by offering support services.

This creates internal tension, weakens social cohesion and fosters economic dependence on illicit activities.

An urgent challenge, a possible opportunity

Loreto faces a significant challenge. However, there is still an opportunity to reverse the situation and strengthen governance across its territories. This requires firm commitment from the Government, national institutions, clarity in formalization policies, and substantial improvements to monitoring and enforcement mechanisms.

The future of Loreto—and of the Peruvian Amazon—must be based on sustainable development that respects life, the rights of communities and the integrity of ecosystems.