Case Study
Brazil
Associated commodity
Associated commodity
Associated commodity
Associated crime
Source
American and South Korean machinery implicated in illegal mining operations on Indigenous and protected lands

A 2023 investigatory report by Greenpeace reported that 75 excavators made by Hyundai Construction Equipment were found to be in use by illegal gold miners to deforest land within the Indigenous lands of the Yanomami, Munduruku, and Kayapó. Illegal mining activities have led to a humanitarian crisis in these areas and companies, by selling equipment to these operations, risk being complicit in these crimes.  One year later, in June 2024, the Business & Human Rights Resource Centre stated that Hyundai and Caterpillar Inc. are facing significant reputational risks as reports of their machinery being used in illegal mining activities in the Amazon continue to come to light. Between April 2023 and 2024, for or example, 90 backhoes were seized on Indigenous and protected land – 26 of which were manufactured by Hyundai – with the use of such heavy machinery being tied to escalating illegal mining activities in the region.  In response to questions from reporters, Hyundai clarified that it has a rigorous internal sales process in place to block customers suspected of involvement in illegal mining activities, and that it requires all customers to declare that the equipment will not be used for illegal mining purposes. However, Hyundai is reliant upon local distributors – in this case BMC Máquinas – to operationalise its standards, and as highlighted by other equipment manufacturers, it becomes difficult to monitor machinery as operators frequently remove trackers from them when entering protected areas. This highlights the importance of transparency and dedication to tackling illegal mining at all points of the supply chain.

Keywords
Latin America, Amazon, Brazil, North America, United States, South Korea, Minerals, Mining, Gold, Commodity Supply, Supply Of Machinery/Equipment, Illegal Mining, Fraud, Human Rights Violations, Iplc’s Rights