World

Pandemic panners: Indonesians hunt for gold in desperate times

Because of the pandemic, consumers and investors around the world have been snapping up gold, sending its price to a record above US$2,000 an ounce last month.

Updated 5 years ago · Published on 23 Sep 2020 12:30AM

Pandemic panners: Indonesians hunt for gold in desperate times
This picture taken on July 7, shows two miners panning for gold along a stream near Korowai, Papua province. – AFP pic, September 23, 2020

TIMIKA – With the coronavirus devastating jobs across the country, desperate Indonesians are flocking to illegal gold mines as the soaring price of the precious metal overrides the risk to their lives and the environment.

Spooked by the economic destruction wrought by the pandemic, consumers and investors around the world have been snapping up gold, which is seen as a hedge against volatility, sending its price to a record above US$2,000 (RM8,280) an ounce last month.

The surge in demand has fuelled a boom in mineral-rich Indonesia's illegal mining industry, with workers ignoring the threat of arrest, mercury poisoning or being caught in the middle of gun battles.

Father-of-two Mustafa is among the hundreds who play a daily game of cat-and-mouse with authorities in the restive Papua region as they pan for nuggets in a river near US-based Freeport's sprawling Grasberg site – one of the world's biggest gold mines.

On a good day, Mustafa collects a gram of gold by sifting through the mud with a fabric filter, which he can sell to a local trader for about 800,000 rupiah (US$55) – no small sum in one of Indonesia's poorest regions. 

The miners here don't use mercury, he said, but there are plenty of other dangers lurking in Indonesia's rugged easternmost territory.

Fear of arrest is ever-present and so is being caught in the middle of deadly fights between security forces and independence-seeking rebels locked in a decades-old insurgency.

"There are more of us here now during the pandemic because the price of gold has jumped," Mustafa told AFP in a telephone interview.

"We're risking arrest by security forces, but we don't have any option because we need money to support our families."

The arduous job also carries the risk of catching the coronavirus or skin infections from wading through waters chock full of waste from the nearby mine.

"This is very dangerous for our health. Me and some of my friends have skin diseases," Mustafa said. "But thank god, so far no one has got the virus."

'Ecological disaster'

Thousands of kilometres to the west in Kalimantan – Indonesia's section of Borneo island – police this month arrested 400 gold miners accused of operating illegally in a conservation area, a crime punishable by up to 15 years in prison.

Here, the dangers of mercury to both miners and the environment is severe, said Sustyo Iriyono, the environment ministry's director of prevention and forest protection.

"The recent arrests in Kalimantan show that illegal activity was huge," he said.

While the ministry does not yet have hard data, Iriyono said illicit mining has spiked nationwide, including on the densely populated Java island and remote Sumbawa.

"The high price of gold during the pandemic is the stimulus behind this... illegal activity," he said.

"They're making profits by destroying the environment. We're trying to find a solution."

Environmental activist Aiesh Rumbekwan said the "massive increase" in unsanctioned mining was being driven by people desperate to feed their families in the pandemic-battered economy.

Government aid has been slow to reach many parts of the sprawling archipelago nation.

"Illegal miners (often) use mercury to speed up the process and that will harm the environment and places where this activity connects to water sources like lakes or rivers," said Rumbekwan, who heads the Papua chapter of environmental network Walhi.

"It could lead to an ecological disaster."

Indonesia banned the use of mercury for artisanal miners in 2017. But the dangerous metal, which can affect the nervous system and cause disabilities in newborn children, can still be purchased on the black market.

The livelihoods of at least one million Indonesians are supported by small-scale mining, according to the United Nations Development Programme (UNDP), which promotes mercury-free technologies.

Despite pandemic restrictions, there are reports of unlicensed operators bringing scores of domestic migrants to makeshift mines sites across the country, which have long been prone to fatal accidents.

"There's no control from the authorities," Rumbekwan said. – AFP, September 23, 2020

Related News

World / 3y

AFP journalist killed in rocket attack in Eastern Ukraine

World / 3y

Turkiye-Syria quake deaths to top 50,000: UN relief chief

Entertainment / 4y

'Strange' reigns but 'Downton' shows class on N.America screens

Entertainment / 4y

Depp lawyers wrap up cross-examination of Amber Heard

Tech / 4y

'Like family': Japan's virtual YouTubers make millions from fans

Entertainment / 4y

Will Smith banned from Oscars ceremonies for 10 years

Spotlight

Malaysia

Jana Wibawa: Muhyiddin's instructions were to consider, not approve the project - Tengku Zafrul

World

Trump declares Iran peace accord 'over'

Malaysia

Rembau Undang’s office ordered to vacate premises within 24 hours amid adat dispute

By Alfian Z.M. Tahir

Malaysia

Don't repeat old mistakes, five ships must be completed according to cost and schedule – PAC

Malaysia

Friends in Putrajaya, rivals in Johor: Election exposes new realities of coalition politics

By Alfian Z.M. Tahir

World

Search intensifies off Karachi after Pakistan cargo jet vanishes following mid-air navigation failure

Malaysia

Salesman gets 10 years jail for slashing motorcyclist with meat cleaver

Malaysia

Thai PM Anutin to make first official visit to Malaysia with border connectivity in focus

Malaysia

Young voters could decide Johor election outcome as parties battle for new electorate

You may be interested

World

Tehran retaliates against US bases in the Gulf

World

61 passengers leave Bangladesh airport after visa checks halt Malaysia-bound flight travellers

World

Fresh US strikes on Iran deepen ceasefire crisis as Trump warns of escalation

World

Bomb blasts near Damascus hotel during Macron visit highlight Syria’s fragile security

World

Amnesty calls for war crimes probe into Israeli strikes in Lebanon that allegedly killed entire families

World

Cargo plane wreckage found off Pakistan as search for 5 crew members continues

World

US-Iran ceasefire under renewed strain as Washington launches fresh strikes

World

Search intensifies off Karachi after Pakistan cargo jet vanishes following mid-air navigation failure