(Photo: Daniela Nunes) The state of Minas Gerais has an old problem with gold mining. Still during the colonial period, steel was one of the main requirements of the cities and the king of Portugal at the time. Nowadays the crown has disappeared, but the demand for gold continues to grow.However, despite its importance for the state of Minas Gerais, not only gold, but also mining in general, greatly harmed the cities of Minas Gerais. In contrast to this, the wealth generated by gold miners and others contributed to the development of the country's smaller towns.
In this complex transition from the gold standard, Minas Gerais should not abandon mining or deny its importance for the country. However, it is necessary to know the new challenges so that the challenges can be overcome by cities and regions that extract natural resources.
Today we prepared this special article and we will talk about the development of gold mining in Minas Gerais, celebrating the gold cycle and providing the modernization of mining in Minas Gerais cities!
What is the golden circle? Gold today is a reserve asset and serves as an alternative in times of political crisis and war. However, it wasn't always like that. During the colonial period, gold was used as currency for direct exchange between countries. So, whoever had the most gold was the richest.
During almost the entire 18th century, colonial Brazil was the Portuguese Empire's main gold producer. Furthermore, Minas Gerais played an important role in industry during that period, leading to the rapid development of agriculture in Brazil.
Led by Minas Gerais, Goiás and Mato Grosso were also strong regions rich in gold. Because of this, Brazil produced 50% of the world's manufactured goods at the time, according to historians. Production was so high that the Portuguese began to migrate to the then colony in search of the fortunes associated with the gold market.
How long did the golden rule last in Brazil? The gold industry in Brazil lasted throughout the 18th century and ended with the departure of the mines. With the collapse of production in Minas Gerais, there was an exodus of workers. The implication is that mining lost space to livestock and agriculture, resulting in the progressive mobility of the Café com Leite system and exchange between the São Paulo and Minas Gerais oligarchies.
Gold mining in Minas Gerais today Gold mining in Minas Gerais remains strong. The country is the largest producer of these metals in all of Brazil, surpassing even those in the Amazon rainforest. However, the industry is far from representing a positive cause for the State.
This is because, despite extensive gold mining, Minas Gerais is the region with the least transparency regarding the origin of the metal. According to a study carried out by the Federal University of Minas Gerais (UFMG), of the 48.7 tons of gold produced in the country and not classified, 88% come from the state of Minas Gerais. As it is illegal mining, environmental risks increase, as does the lack of urban revenue.
The lack of serious action by the Government against illegal mining means that since the gold standard in the 18th century, little change has been observed. Thus, despite the availability of advanced technologies, new methods do not seem to be used in favor of mining.
Best Advanced Examples in Gold Mining Gold remains one of the most important commodities in the world. Therefore, although only the state of Minas Gerais and Brazil are notable in terms of best practices, other countries show experience in innovating and driving progress in the gold mining industry.
Among the best examples are:
International certifications: production of reinforcing bars in metal drilling equipment; Reforestation strategies: with the end of the reserve, reforestation work begins in the area affected by mining; Decarbonization: use of net zero initiatives to reduce carbon emissions, with regard to renewable energy; Leverage technology: Implement automation tasks in gold mining in order to reduce the risk of worker injuries. Conclusion – Will gold mining in Minas Gerais become more competitive? Gold mining in Minas Gerais is slowed by illegal mining. As long as this evil persists in the country, there is no way to guarantee the progress of the industry, nor to obtain benefits for the cities and the country itself.
As a solution, it is important to prevent mining operators from coming and encouraging companies to explore legally. To achieve this, the Government must create public policies that encourage illegal mining companies to operate legally!