There are three general types of mines in the Amazon region categorized by their ownership and methods. The first kind is the state-owned mines which were seized and nationalized in the 1970s from foreign corporations that were exploiting the minerals of the area but not returning any profits to the area. Unfortunately, when they were nationalized, free market capitalism and competition was displaced and a state monopoly was established. In a monopoly with no outside threats, there is no incentive for safety standards, protection of the environment, or workers rights. Thus, even though codes and laws have been enacted to protect the environment, the state-owned monopolies continue to neglect them. As a consequence, these mines have generally degraded into poorly run and inefficient enterprises that are very damaging to the environment.
http://insomniadiary.wordpress.com/2013/01/04/the-environmental-threats-from-gold-mining/
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