To better understand the history of gold mining in Peru’s Amazonian region of Madre de Dios — as well as its economic significance and social and environmental challenges — we spoke with Alejandro Portillo, Research Associate at the Wyss Academy, who has extensive experience working on mining and sustainability in the Peruvian Amazon.

In this interview, Alejandro walks us through how gold mining took root in Madre de Dios, explains the critical differences between legal, informal, and illegal mining, and unpacks why mining has become such a central livelihood for tens of thousands of people in the region. He also sheds light on the profound environmental and health impacts of mercury use, the social consequences for local communities, and the structural barriers that make responsible mining difficult to scale.

Finally, Alejandro reflects on what a fairer and more responsible mining sector could look like — from mercury-free technologies to improved labor conditions and access to formal markets — and why meaningful change requires aligning local realities with global demand.

Could you please give us a brief overview of the history of mining in the Madre de Dios region?  

Mining in Madre de Dios began in 1943 with the arrival of Dominican missionaries, who introduced artisanal gold extraction to the Indigenous peoples who had survived the rubber boom. This artisanal activity marked the beginning of what would later become one of the region’s main economic sectors. 

In the following decades—especially between 1950 and 1963—the region’s population tripled due to the arrival of migrants from the southern Andes, drawn by mining opportunities and the newly established road connection to Cusco. 

In 1970, the state-owned Banco Minero opened an office in Madre de Dios, marking the first significant effort to formalize and regulate mining in the region. Despite this, artisanal and small-scale gold mining (ASGM) continued to rely heavily on mercury, a process that has caused severe environmental and health impacts. 

Over the years, the government has intervened multiple times to address the problems associated with mining, such as mercury contamination and illegal operations. In 2016, a state of emergency was declared due to high mercury exposure among the population, and in 2019, “Operation Mercury” was launched to combat illegal mining. 

Today, mining in Madre de Dios faces substantial challenges: the need for further formalization, the fight against illegal mining, and the search for sustainable, mercury-free alternatives. 

Can you please explain the difference between legal, illegal, and informal gold mining? 

Legal mining operates fully within the regulatory framework established by the government. This means miners obtain all required permits, licenses, and concessions and work within authorized mining corridors. Key features include compliance with environmental and labor regulations, payment of taxes, and adherence to human and labor rights protections. Companies operating with official concessions and strictly following safety and environmental standards are examples of legal mining. 

Illegal mining does not comply with administrative, technical, social, or environmental requirements and takes place in prohibited areas such as waterways or protected zones, often using unauthorized machinery. Because of these violations, illegal mining cannot be formalized. It is considered a criminal activity and is punishable by imprisonment. 

Informal mining refers to operations that have begun the state-led formalization process. Activities take place only in permitted areas and use machinery compatible with small-scale production. Unlike illegal mining, informal mining can be formalized. Miners registered in the REINFO formalization system are not subject to criminal liability. 

Why is mining an important economic activity in Madre de Dios? 

Mining is economically significant in Madre de Dios because it represents a large share of the department’s GDP. The sector drives economic growth and creates both direct and indirect jobs. However, most mining activity is informal or illegal, which poses serious challenges for sustainability and long-term development. 

Although Madre de Dios is the second least poor department in Peru in terms of monetary poverty, it has high multidimensional poverty, reflecting significant deficits in basic services and living conditions. Informal and illegal mining also contribute to deforestation and fuel illicit activities such as child labor and human trafficking, worsening social and environmental problems. 

What role does mining play in the local economy and in people’s livelihoods? 

Mining is the leading economic activity in Madre de Dios and contributes substantially to household income. Gold accounts for more than 60% of the region’s exports. With few alternative job opportunities, mining has become the primary livelihood for many families — over 46,600 people are engaged in mining. However, the activity also brings serious environmental, health, and public safety consequences. 

What are the environmental impacts of mining activities in Madre de Dios? 

Mining has caused major environmental damage in Madre de Dios. Between 1985 and 2017, alluvial gold mining led to the deforestation of more than 100,000 hectares of Amazon rainforest. A historical peak was reached in 2017 with 9,860 hectares lost, and between 2021 and 2022 an additional 18,000 hectares were deforested, mainly within the mining corridor. Mining also causes soil erosion, which affects ecosystem services. 

Artisanal and small-scale mining (ASGM) are the greatest source of mercury emissions in the region. Miners use mercury to extract gold, releasing about 181 tons of mercury per year in Madre de Dios. This contaminates water bodies and the atmosphere and accumulates along the food chain, causing severe risks to local communities and ecosystems. 

What are the effects of mercury contamination in the region, considering people, animals, and the environment? 

Mercury contamination in Madre de Dios has serious impacts on people, animals, and ecosystems. In humans, it causes health problems such as neurological disorders and kidney damage. Mercury bioaccumulation in fish contaminates the food chain, affecting everyone who consumes local fish. 

In animals, mercury causes toxicity, disrupts reproduction and behavior, and accumulates in predators, reducing their populations. Environmentally, mercury contaminates soil and water, disrupts aquatic and terrestrial ecosystems, and harms biodiversity. Soil contamination also undermines agriculture, threatening food security. 

What are some of the social impacts of mining on local communities — both positive and negative? 

Mining is one of the region’s main economic activities, providing income for more than 46,000 people and helping sustain the local economy. Women play a notable role in the sector: about 30% of mining concession holders are women. 

On the other side, mining in Madre de Dios brings significant negative effects. Health and safety conditions are poor, mercury use has caused serious health problems, and inadequate labor conditions increase the risk of accidents and disease. Socially, mining is linked to forced labor, human trafficking, gender-based violence, labor rights violations, child labor, and prostitution — affecting especially vulnerable groups, including minors. 

Environmentally, extensive deforestation has left behind large, abandoned mining ponds, degrading the landscape and lowering quality of life. Economically, informal and illegal mining lead to tax evasion, which weakens public revenue. 

How can mining move toward a more fair and responsible activity?  

Achieving fair and responsible mining in Madre de Dios requires implementing environmental and social safeguards that promote sustainable practices. One current example is the gradual elimination of mercury, replacing it with clean technologies such as gravimetric tables, which are not only more efficient at recovering gold but also reduce environmental impacts and improve workers’ health. 

Ensuring efficient and responsible mining operations through well-designed mining plans can reduce deforestation and improve working conditions, minimizing risks, and increasing productivity. Other key initiatives include proper water management and landscape restoration, which can rehabilitate degraded areas and create new economic opportunities, such as tourism or agroforestry. 

Finally, promoting mining operations that are free of forced labor and gender-based violence is essential for protecting human rights and ensuring fair working conditions. These improvements also facilitate access to responsible gold certifications, opening markets with more favorable prices. 

Interview conducted and written by Julia Cunha