NGO Warns of Criminal Interests in Green Minerals
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NGO Warns of Criminal Interests in Green Minerals

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Fernando Mares By Fernando Mares | Journalist & Industry Analyst - Thu, 01/12/2023 - 15:27

The energy transition has resulted in an increased demand for minerals like lithium, cobalt, rare earth elements (REE), nickel, chromium, molybdenum, graphite and copper, which have been labeled as “green minerals.” The Global Initiative Against Transnational Organized Crime (GI-TOC) warns that criminal organizations might also be interested in harnessing the increasing prices of such minerals, which could pose a threat to both government and mining companies.

GI-TOC pointed out that countries ranked on its global Organized Crime Index 2021 have important green mineral reserves, heightening the risks they face. According to the organization, Mexico, Brazil, South Africa, China, Peru, Indonesia, Vietnam and India are the countries exposed to the highest levels of risk.

GI-TOC said organized criminal organizations might turn their focus to green minerals that were heretofore economically unattractive, but this situation has changed now that their prices are skyrocketing due to rising demand. In the case of Mexico, which recently discovered potential lithium deposits, GI-TOC says that the country may be at risk because of incursions in mining activities by cartels. The organization acknowledges that lithium has not been mined yet in the country but argues it has the potential to deliver significant revenues. 

According to reports from the Ministry of Economy (SE), Mexico has not yet produced any lithium. Nonetheless, it identified three areas where exploration works are taking place: Baja California, San Luis Potosi, Zacatecas and Sonora. According to José Gutiérrez, President, The Mexican Mining Chamber (CAMIMEX), the mining sector has been a target of thieves targeting supplies and minerals. According to Gutiérrez, the most affected mining projects are those operating in Zacatecas, Sonora, Durango and Guerrero, as reported by MBN.

Security has been a persistent issue for the mining industry. Mining players welcome government efforts to improve security but argue that the work done is insufficient. Other industry experts are worried that cartels are carrying out illegal mining operations, as reported by the US Treasury Department. 
 

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