Illegal gold mining has become Peru's most profitable illicit industry, driven by skyrocketing international gold prices. This activity has now surpassed drug trafficking, despite Peru being the world's second-biggest producer of cocaine after Colombia.
According to Peru's financial supervisory body, illegal gold mining represents the top illicit finance threat to the country. The Peruvian Economics Institute estimates the illegal trade could reach $18 billion in value by the end of 2026, having already exceeded legal gold production in the first half of this year. Between 2021 and 2025, the country's Financial Investigation Unit found that illegal mining accounted for nearly 60% of all investigations by value, significantly higher than drug trafficking (8%) or tax crimes (4%).
The increase in illegal mining has led to significant environmental damage, particularly in the Madre de Dios region. Over 140,000 hectares of rainforest have been lost to mining in this area, which accounts for 97.5% of all deforestation caused by mining in Peru's Amazon rainforest. In the Tambopata National Reserve alone, more than 500 hectares of rainforest have been destroyed in the last year, according to satellite mapping data from Amazon Conservation.
Military crackdowns are underway to combat this destructive activity. General Víctor Cotrina, military commander of Madre de Dios, noted that high gold prices mean miners quickly replace destroyed equipment. While raids have destroyed an estimated $500 million in machinery and supplies, prosecutors admit they can only slow the pace of destruction, often apprehending low-level operatives rather than the owners of these illicit enterprises.