Latest news with #YuHao
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First Post
4 days ago
- Business
- First Post
Report says China a 'global mining mafia': At least 15 gold-rich nations complain about illegality
Illicit mining operations in nations like Indonesia, where oversight is frequently compromised and enforcement is lax, are now contributing to meeting that demand A growing network of Chinese-led syndicates is fueling an increase in illicit gold mining throughout Indonesia, turning small-scale, traditional operations into large-scale businesses and igniting concerns about corruption, environmental damage, and geopolitical risk. Demand for gold has surged as a result of China increasing its gold reserves as part of a larger plan to lessen reliance on the US dollar. Illicit mining operations in nations like Indonesia, where oversight is frequently compromised and enforcement is lax, are now contributing to meeting that demand, according to a recent Washington Post investigation. STORY CONTINUES BELOW THIS AD Local communities pushed aside What were formerly unofficial, artisanal mining sites have evolved into highly mechanised areas controlled by Chinese investors and operators in areas like West Kalimantan and West Nusa Tenggara. These syndicates extract gold on a scale well beyond the law, frequently without the necessary permits or safety precautions, using imported heavy machinery, chemical leaching systems, and a large number of local workers. In one instance, Chinese investors allegedly made over $5.5 million a month from illicit mining in Lombok's Sekotong district before local communities rebelled due to contaminated water and disappearing farmland. Only after villagers set fire to the mining site in August 2024, forcing authorities to step in, was the operation shut down. Yu Hao, a Chinese national, was arrested in Ketapang, West Kalimantan, for running a gold mine without a license in another well-known case. According to the prosecution, his company used shell corporations and falsified documents to unlawfully extract more than $67 million worth of gold and silver. Despite being found guilty and given a prison sentence, a local court controversially reversed the decision; however, in response to public outcry, Indonesia's Supreme Court later upheld the verdict. Environmental Damage and Global Supply Chain Risks These mining mafias sometimes operate under dormant mining licenses, bribe local officials, and take advantage of legal grey areas. Investigators caution that the criminal networks responsible for them are cross-provincial and could be connected to international smuggling rings and money laundering schemes. According to analysts, the illicit gold trade now generates more than $30 billion a year worldwide. The effects on the environment are dire. Gold processing uses cyanide and mercury, which have ruined crops, contaminated groundwater and rivers, and increased health problems in the communities around them. Due to corruption or the influence of well-funded foreign actors, local authorities frequently do nothing. Despite international concerns, China has refused to engage in multinational efforts to regulate illegal gold flows, and its gold import practices remain opaque. Analysts warn that without coordinated global action, tainted gold will continue to enter legitimate markets, undermining supply chain integrity and fueling further environmental damage.
South China Morning Post
27-01-2025
- South China Morning Post
Indonesian court's acquittal of Chinese national over gold mining sparks anger
A decision by a court in the Indonesian province of West Kalimantan to acquit a Chinese national accused of illegally mining tens of millions of dollars worth of gold has been questioned by legal experts, with one calling it an injustice for the affected community. Yu Hao was initially convicted in October by a lower court for mining without permits from February to May last year and was handed a jail term of three and a half years and a fine of 30 billion rupiah (US$1.9 million), lower than the prosecution's request for five years' imprisonment and a 50 billion rupiah fine to be imposed on Yu. Following an appeal by Yu, the Pontianak High Court on January 13 acquitted the defendant due to a lack of 'valid and convincing evidence'. The Attorney General's office has said that it would appeal the decision to the Supreme Court. The West Kalimantan police revealed last year that Yu had allegedly mined 774.27 kg of gold and 937.7 kg of silver illegally in the province, causing state losses estimated at 1.02 trillion rupiah (US$61 million). The suspect allegedly dug tunnels that were unsupervised by licensed gold miners by using heavy machinery as well as dangerous and forbidden substances such as mercury to extract the precious metal. More than 80 Chinese workers and locals were employed to carry out the illegal operations, the police said at the time. The ruling in West Kalimantan came after Indonesian police said in September that they were investigating the alleged involvement of 15 Chinese nationals at an illegal gold mine in the Sekotong area in West Lombok regency. The mine's operations had led to residents setting it on fire, according to the police.
