Africa: Wagner Generated More Than $2.5 Billion From Illicit Gold Mining
Russian paramilitary group Wagner has raked in more than $2.5 billion from illegal gold mining in several African countries, a report released by the World Gold Council (WGC) on November 18, 2024 , reveals . Since the start of the war in Ukraine, this windfall has come from mines and refineries under Wagner’s control in conflict zones such as the Central African Republic , Mali , Libya and Syria , as well as from payments made by African regimes in exchange for security services.
An economic model based on gold
An organized and internationalized trade
Illegally mined gold is often shipped to Russia directly through the Latakia military base in Syria or through international trading hubs such as Hong Kong , India , Turkey , Switzerland and the United Arab Emirates . This trade directly feeds the Russian war machine , which is partly funded by profits from the precious metal.
Expansion in Mali
Despite the disappearance of its founder, Yevgeny Prigozhin , and his integration into the Russian army, Wagner continues to expand its influence, particularly in Mali . In February 2024 , the group took control of an artisanal mine in Intahaka , strengthening its hold on local gold resources.
An exploited and vulnerable artisanal mining sector
Alarming figures
The artisanal and small-scale gold mining ( ASGM ) sector accounts for approximately 20% of the global gold supply and employs 80% of the global mining workforce . In 2022, an estimated 15–20 million people work directly in the sector, indirectly supporting nearly 270 million people . However, 80% of this activity takes place in the informal economy , exposing miners to immense risks.
Risk to governments and miners
Criminal gangs , terrorist groups and corrupt officials exploit this channel to finance their activities and deprive states of essential tax revenues. For example, in Sudan , the dispossession of artisanal miners cost the government an estimated $2 billion in a single year.
Human and environmental consequences
The use of chemicals such as mercury and cyanide to separate gold from ore leads to serious health problems:
- Neurological damage , kidney and respiratory diseases.
- High mortality rates due to collapses and landslides.
Moreover, children continue to be exploited in these mines, as revealed by Human Rights Watch in Ghana in 2015.
Lack of transparency and coordination of actions
Existing but ineffective legal instruments
Despite tools such as the UN Guiding Principles on Human Rights, European legislation on conflict minerals or the US Dodd-Frank Act , their implementation remains insufficient. Governments and companies lack transparency, and the most serious violations often remain unpunished .
A concerted approach is necessary
To protect mining communities and combat illicit gold mining, coordinated action between national and international actors is required:
- Dismantling criminal networks : seizure of assets, visa restrictions and strengthening judicial cooperation.
- Integration of ASGM into legal supply chains : formalization of the sector, gold purchasing programs by central banks and awareness-raising among buyers on the origin of gold.
- Development of early warning systems to protect vulnerable minors.
Conclusion
The illicit exploitation of gold by the Wagner group illustrates the excesses of a fragile mining sector, where the most vulnerable are exploited while billions finance international conflicts . Faced with these challenges, the formalization of the sector, transparency of trade flows and international cooperation appear as urgent solutions to put an end to this destructive exploitation and preserve regional peace.t allow Benin to further strengthen itself in the regional port landscape.
