The Development of Gold Mining in Minas Gerais: From the Golden Age to the Present

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O Desenvolvimento da Mineração de Ouro em Minas Gerais: Da Idade de Ouro aos Presentes(Photo: Daniela Nunes) The state of Minas Gerais faces a long-term gold mining problem. Already in the colonial period, metal was one of the most important desires of cities and the Portuguese crown at the time. Today, the crown is gone, but the search for gold remains high.

Despite its undeniable importance for the state of Minas Gerais, not only gold, but mining in general caused great losses to the cities of Minas Gerais. At the same time, the wealth generated by garimpeiros and other miners influenced the development of the state's smaller cities.

In this development that continued after the gold cycle, Minas Gerais should not abandon mining or deny its importance for the state. However, lessons must be learned from the most recent problems in order to overcome the challenges in cities and regions of Minas Gerais.

Today we prepared this special article and commented on the development of gold mining in Minas Gerais, remembering the gold cycle and presenting the modernity of mining in Minas Gerais cities!

What is the gold cycle? Today, gold is a reserve asset and serves as an alternative during geopolitical crises and conflicts. However, it wasn't always like that. During the colonial period, gold was used as currency for direct exchange between nations. So whoever had more gold was richer.

During practically the entire 18th century, colonial Brazil was the largest producer of gold for the Portuguese crown. Furthermore, Minas Gerais played a decisive role in production during this period, which led to the rapid development of infrastructure in Brazilian states.

Led by Minas Gerais, Goiás and Mato Grosso were also regions with strong gold production. Therefore, according to historians, Brazil produced 50% of world production at that time. Production was so great that the Portuguese began to move to the then colony in search of fortune related to the gold market.

How long did the golden cycle last in Brazil? The gold rush in Brazil lasted throughout the 18th century and ended when mining deposits were exhausted. When production in Minas Gerais declined, workers left. So much so that mining lost space to livestock and agriculture, leading to a future of Café com Leite politics with alternating oligarchies in São Paulo and Minas Gerais.

Gold mining in Minas Gerais today Gold mining in Minas Gerais remains strong. The state is the main producer of the metal in all of Brazil, surpassing even the production of the Amazon forest. However, production is not a win-win situation for the state.

This is because, despite the high rates of gold mining, Minas Gerais is the region with the least transparency regarding the origin of the metal. According to a study by the Federal University of Minas Gerais (UFMG), of the 48.7 tons of unclassified gold extracted in the country, 88% come from the state of Minas Gerais. Because it is illegal mining, environmental risks increase and there is no income for the cities.

The lack of stricter government measures to combat illegal mining means little has changed since the 18th century gold rush. This is why new solutions do not seem to be used even with high technology in mining.

Good examples of modernity in gold mining Gold is still one of the most important commodities in the world. Therefore, while the state of Minas Gerais and Brazil itself are surprising in terms of best practices, other countries show expertise in innovation and advancement of the gold mining industry.

The best examples are:

International certifications: creation of sustainable development seals related to metal mining; Afforestation policy: after the end of the deposit, afforestation of the target mining area will begin; Reduction of the carbon footprint: use of initiatives to reduce the carbon footprint, prioritizing renewable energy; Use of technology: implementation of automation functions in gold mining to reduce worker contamination risks. Conclusion – Will gold mining in Minas Gerais become more competitive? Gold mining in Minas Gerais is lagging behind due to illegal mining. As long as this evil continues in the state, no concrete progress can be made in the countryside and no positive effects can be found in the cities and the state itself.

As a solution, it is important to prevent the entry of miners and encourage companies to mine legally. To achieve this, the government must create a public policy that convinces illegal mining companies to comply with the law!