Earlier this month, 50 agents dismantled the illegal mine in Canaa dos Carajas, which is located near Sossego, the largest copper mine in Vale. Ezequias Martins, the head of the working group, said through his press office that there were signs that the metals had been shipped to China. He said that this case may lead to the conviction of environmental crimes and criminal organizations.
In recent years, with the progress of technology and the rising demand for battery metals from fossil fuels to copper prices, unlicensed miners (known as garimpeiros in Brazil) have diversified their business and entered the copper industry. At the same time, large mining companies are also seeking to increase copper assets. Vale hopes to raise funds to develop its base metal business.
Although illegal production accounts for only a small part of the total supply of copper, it may have a huge impact on the environment and indigenous communities. The government led by Brazilian President Luiz Inacio Lula da Silva has vowed to crack down on the illegal gold rush in Brazil. MapBiomas, a non-governmental organization, estimates that the illegal gold rush currently occupies an area larger than industrial mines in Brazil.
The secret copper mine dissolved this month is the so-called tunnel-type copper mine, in which ores containing copper and gold are blasted with explosives. Some galleries can extract 30 tons a day. The copper price in London is about $9,000 per ton, compared with less than $5,000 three years ago.
The environmental and community damage caused by this practice damages the general reputation of mining and poses a threat to formal industry.
Illegal mining activities have begun to encroach on the land of Vale. Vale is the second largest iron ore producer in the world and a major supplier of nickel and copper. In response to a question from Bloomberg, Vale said that as illegal miners are looking for copper mines, the company has stepped up monitoring and provided information about secret activities on its land to the regulatory agency ANM.
Vale said: "In addition to constituting a crime, this practice will also have a serious impact on the environment, public finances, security, attracting investment and the implementation of new enterprises."