‘All that glitters is not gold’: the effects of the COVID-19 pandemic on artisanal and small-scale gold mining and supply chains in Peru

Abstract

This article explores the impact of COVID-19 on artisanal and small-scale gold mining (ASGM) supply chains in Peru between spring 2020 and early 2021. This analysis delves into the effects of the pandemic on the ASGM sector and the illicit flow of gold, including the effect of the mandated lockdown on the Peruvian economy, the price of gold and its impact on artisanal and small-scale mining communities, the socio-economic consequences of the quarantine on Peru's ASGM population, and the impact of lockdown on the gold supply chain. This study suggests the artisanal and small-scale mining formalization process in Peru was greatly impacted by the coronavirus pandemic, which brought complications such as increased criminal activity and violence along the gold supply chain. Similar trends can be seen in ASGM populations around the globe, and case studies from Zimbabwe, Colombia, Bolivia, and Chile explore how different governments have handled the effect of COVID-19 on the ASGM sector. This article highlights recommendations for governments and other key stakeholders to consider for supporting and strengthening ASGM communities, the gold supply chain, and the pursuit of formalization in Peru and worldwide.