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[Nico Ibarguen] The
Peruvian government,
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is waging a new war.
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They are fighting
illegal miners
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sifting the earth for the world's
most precious metal: gold.
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Illegal mines have
turned forests like this...
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...to this.
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A Univision investigative report
reveals that narco traffickers
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are now in the
gold business.
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[Quinn Kepes] In Peru,
which is the largest
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cocaine producer
in the world,
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gold has now surpassed
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cocaine as Peru's
largest elicit export.
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[Ibarguen] Quinn Kepes
wrote a report
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about illegal gold
mining for Verite,
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a group that tracks
global supply chains.
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The Verite's report
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found slave labor
conditions,
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human trafficking,
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and other criminal
activities
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in Peru's gold
mining industry.
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[Kepes] The Peruvian
government recently
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said that 60 percent of
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all crime could
be linked to
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drug trafficking
and illegal mining.
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And they lump
both of those
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together because both of
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them generate
a huge amount
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of crime and violence.
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[Ibarguen] Peru is the fifth
biggest gold producer in
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the world worth $10
billion a year.
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But very little
of that money
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trickles down to
Alberto Perez who works
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the dirt in this
illegal gold mine in
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that protected area of
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the Amazon called
Madre de Dios.
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[engine starts up]
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[foreign language]
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[interpreter for Perez]
We start working
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from six in the morning
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until the following day,
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we work 24 hours.
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[Ibarguen] Here, miners have
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cleared trees to extract
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the gold out of the mine.
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[foreign language]
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[interpreter for Perez] The
sand flows down slowly here
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and it leaves
the gold behind.
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[Ibarguen] Alberto
is just one of
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more than 30,000
prospectors
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who have marched
through this region of
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the Amazon with the
hopes of striking it rich.
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And the miners have left
a devastating mark.
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Nearly 370 thousand acres
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of the Peruvian Amazon
has been destroyed.
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Illegal gold mining's
toxic companion,
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mercury, has left an
even bigger footprint.
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[Luis Fernandez] There
is an invisible aspect,
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which is the contamination
with mercury of
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the waterways and
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the ecosystems
of the region.
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[Ibarguen] Luis Fernandez
is the director of
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the Carnegie Amazon
Mercury projects.
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They discovered that
Mercury has seeped
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into the rivers and
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worked its way up
the food chain.
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[Fernandez] What we've found
through testing the hair of
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more than 1,000
people is that
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the residents of
Madre de Dios are
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highly contaminated
with mercury.
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76 percent of the population
of Madre de Dios has
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mercury levels above
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World Health Organization
maximum limits.
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[Ibarguen] Mercury
is a toxic substance
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that affects the brain
and nervous systems.
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But Alberto says
he's not affected.
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[foreign language]
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[interpreter for Perez]
I'm 54 years old.
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I've been working
in the mines for
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20 years and
I've never felt sick.
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I'm as lucid as
a 20-year-old man.
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[Ibarguen] Alberto
says he can earn
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up to $900 a week,
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much more than he
would as a taxi driver.
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Most of the profits in
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these mines end up in
hands of the gangs,
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that own the pumps
and machines.
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[Kepes] In Madres de Dios,
really it's controlled by
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large familial
base groups,
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which, you know,
could really
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be considered criminal
organizations. [gun shots]
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[foreign language]
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[interpreter for Tania Quispe]
There's evidence that people
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engaged in
criminal activities,
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like narco trafficking
and terrorism,
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are involved in
illegal gold mining.
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[Ibarguen] Tania Quispe
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is the director of Peru's
equivalent of the IRS.
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[interpreter for Quispe]
We know that 20% of the
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gold exported in
2013 is illegal gold.
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[explosions]
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[Ibarguen] The Peruvian
government is showing
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its commitment to stop
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illegal gold
mining with force,
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but prosecutors have only
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sent the handful of
illegal miners to prison.
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Illegally mined gold
is melted with legally
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mined gold and flows
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virtually undetected
to Switzerland,
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Canada, and the
United States.
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In 2013, the Peruvian,
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special prosecutor
for money-laundering,
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ceased $11 million
worth of gold
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from a mining company
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with a history of
drug trafficking.
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[Kepes] A lot of the
narco traffickers
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use gold to
launder drug money
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because they can purchase
gold or interests
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in illegal gold mines
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or even legitimate
gold mines.
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[indistinct conversation]
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[Ibarguen] But that mining company
managed to get the gold out
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of Peru with the help
of a corrupt judge.
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[Kepes] You've heard
about narco politicals
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because we have
the "oro politicals"
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we have politicians
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who are funded by gold
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who use gold mining
to foment corruption.
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[Ibarguen] Security
video obtained
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by Univision's
investigative
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unit shows members of
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that mining
company collecting
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$11 million worth
of illegal gold.
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It eventually made its way
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to importers in
Miami, Florida.
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[Kepes] This gold
makes its way
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into a lot of
our products.
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So whether that's
jewelry or electronics,
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cell phones, laptops,
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gold is in all of those.
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And so I think that
there's really a need to
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expand the definition of,
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of conflict minerals to
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include these
types of issues in
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Latin America where gold
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is really fueling slavery,
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violence, corruption,
organized crime.