Algeria seizes mercury used in illegal gold mining

Police said 13 people were arrested in separate operations in Constantine and Skikda, where investigators dismantled two trafficking networks and an illicit gold-processing workshop. In Constantine, officials recovered more than 176 kilograms of mercury, including 110.50 kilograms in one case and 65.85 kilograms in another, along with a modified vehicle and cash allegedly from illegal sales.

In Azzaba, near Skikda, four men were arrested at a clandestine gold extraction site where police seized 17.770 kilograms of mercury, a light truck, precision scales, stone fragments with traces of yellow metal and equipment used to process ore. Prosecutors said the suspects used dangerous chemicals without authorization or protective gear.

The operations show how the market for mercury has become a critical enabler of illicit gold mining in Algeria’s east, where prospectors use the substance to separate gold particles from rock. That links a criminal supply chain to higher gold prices, which have kept the metal attractive for informal miners despite the legal and health risks.

For investors, the story is another reminder that elevated gold prices can draw in both legitimate demand and unofficial supply responses, adding to volatility in the broader bullion complex. Gold-backed assets such as SPDR Gold Shares, or GLD, and mining ETFs including VanEck Gold Miners ETF, or GDX, have already been moving on strong bullion demand, while the larger producers such as Newmont and Agnico Eagle remain sensitive to shifts in physical supply, regulation and the premium on compliant production.

The cases also highlight a wider policy risk for resource-rich regions: as precious metals rally, enforcement costs rise and environmental liabilities deepen. Authorities said the investigation is continuing to identify suppliers and possible accomplices.