There are other issues as well. As noted in an overview of illegal mining in Latin America by the Economist, armed groups often get involved in the process, making things that much more dangerous. Up to 80 Yanomami tribespeople were killed in Venezuela after prospectors attempted to push them from their land. Furthermore, illegal mines can have devastating environmental effects due to the use of harsh chemicals or unregulated river dredging.
http://goldinvestingnews.com/50961/when-illegal-gold-mining-goes-wrong.html
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