Case Studies

The Brazilian Federal Regional Court of the 1st Region convicted three companies for the illegal logging and subsequent transportation and trade of wood from the Rondônia region of the Legal Amazon. The companies involved are Celia Ceolin EPP, BV Indústria e Comércio de Madeiras Ltda ME, and Madeireira Mil Madeiras Ltda EPP. Each company was fined US$100,000 and ordered to plant 10 hectares of the protected Brazilian tree that had been illegally exploited. The conviction followed Operation Guardians of the Mountains in 2008, where authorities were able to seize 600 cubic metres of timber illegally logged in the Amazon, as well as 17 trucks. The wood had been sawn without authorisation, whereas Mil Madeiras had falsely advertised on their website that they operated in an environmentally conscious manner, claiming certification from Brazilian environmental authorities. However, the exploitation of Brazilian nut wood, found during the Operation, has been prohibited since the early 1990s. The court also found that, in addition to the illegal cutting of protected trees in the Amazon, the companies laundered the timber by mixing the illegally logged wood with legal logs, and their records never mention the Brazil nut. 
  

Keywords: Latin America, Brazil, timber, primary production, environmental crime, illegal timber trade
  

Sources:  https://www.occrp.org/en/daily/16100-brazil-sentences-three-companies-for-timber-laundering 

https://www.mpf.mp.br/regiao1/sala-de-imprensa/noticias-r1/empresas-sao-condenadas-pelo-transporte-e-comercio-ilegal-de-madeira-de-castanheira-extraida-da-amazonia-legal 

Jacobs Douwe Egberts' assessment of Honduras reveals significant environmental crimes linked to coffee production, specifically illegal deforestation and land degradation. These practices are driven by the expansion of coffee farms into protected areas and forests, exacerbated by weak enforcement of environmental regulations and insufficient monitoring. The report highlights how illegal logging and land conversion for coffee cultivation contribute to the loss of biodiversity and climate change. Moreover, environmental crimes are often tied to broader socio-economic issues, such as land tenure conflicts and the exploitation of indigenous communities. These activities not only threaten the ecological balance but also undermine sustainable development efforts in the region.  

Keywords: Latin America, Honduras, coffee, primary production, environmental crime, illegal deforestation, indigenous rights

Source: https://www.jacobsdouweegberts.com/siteassets/cr/common-grounds---om/origin-issue-assessment---honduras.pdf  

Chinese national Gao Feng has been indicted by Liberian authorities for leading a large-scale illegal mining operation, depriving the Liberian government of over US$29 million in revenue. The indictment accuses Gao Feng and several associates of economic sabotage, tax evasion, and criminal conspiracy.

In response to complaints, the Ministry of Mines and Energy launched investigations, resulting in raids on Gao Feng’s mining sites. While seven associates were apprehended, Gao Feng and many others managed to escape. A writ of arrest has been issued alongside a travel ban to prevent them from fleeing the country.

However, the case faces challenges due to alleged corruption and interference from some government officials. Illegal mining has had a devastating impact on Liberia’s environment and economy, with unregulated mining practices leading to deforestation, soil erosion, and water pollution.

Keywords: Sub-Saharan Africa, Liberia, minerals, illegal mining, tax evasion, corruption and bribery, environmental crime

Source: https://www.liberianobserver.com/news/cartel-leader-gao-feng-indicted-for-illicit-mining-tax-evasion/article_6cf617a6-4288-11ef-8b4b-3b9fa771583e.html

A six-month investigation by Global Witness has revealed that the illegal mining of heavy rare earth minerals in Myanmar has led to severe human rights abuses and environmental devastation. Rare earth minerals have started to be predominantly sourced from Myanmar following the closure of many Chinese mines due to environmental concerns. These mining operations are largely illegal and occur in the semi-autonomous Kachin State, controlled by militias with ties to the Myanmar military junta. This situation has led to severe human rights abuses. Employees work in conditions of exploitation, with local workers, including children, employed in hazardous conditions without proper permits or legal protections. In addition, employees face discrimination, with Chinese workers occupying skilled positions, while Burmese workers do manual labour. Locals also face threats and violence from militia groups if they resist giving up their land for mining. Illegal mining in Myanmar also leads to environmental degradation, as the mining techniques used have poisoned local water sources and caused deforestation. Communities are losing access to clean drinking water, and their agricultural products are contaminated, causing illness. This has created a situation of significant displacement of local populations.  

Keywords: South East Asia & Pacific, Myanmar, minerals, primary production, illegal mining, human rights violations, labour rights violations, environmental crime

Sources:  https://www.globalwitness.org/en/campaigns/natural-resource-governance/myanmars-poisoned-mountains/ 

https://www.globalwitness.org/en/campaigns/natural-resource-governance/addressing-risks-supply-chain-heavy-rare-earth-minerals-illicit-mining-myanmar/   

According to a report by Global Witness, the military junta in Myanmar heavily relies on the country’s gemstone industry for funding, including through rubies, sapphires, and other coloured stones. The military’s exploitation of these minerals is illegal, since all mining licences expired in 2020. Despite this, mining has surged since the coup in 2021, with tens of thousands of informal miners exploited by the military and armed groups. In addition, the military systematically collects bribes from informal miners in key extraction areas. The complex supply chains obscure the origins of the gemstones, making it difficult for buyers to monitor ethical sourcing. Consequently, multinational jewelers may be exposed to rubies that are linked to the funding military abuses; only four of over 30 allegedly implicated companies have publicly declared that they have stopped sourcing from Myanmar.  

Keywords: South East Asia & Pacific, Myanmar, minerals, primary production, illegal mining, human rights violations, labour rights violations, environmental crime

Sources:  https://www.globalwitness.org/en/campaigns/natural-resource-governance/conflict-rubies-how-luxury-jewellers-risk-funding-military-abuses-myanmar/