Apple supplier bought gold from alleged Amazon smuggling ring

A company that supplies gold to the tech giant Apple acquired millions of pounds worth of the metal from an illegal mining ring in the Amazon rainforest, Brazilian prosecutors say.

Italpreziosi, a metal refinery in eastern Tuscany, bought from an alleged smuggling operation that laundered over £3bn worth of illicit gold using fake invoices, some issued in the names of dead people.

Those facing the allegations are now being prosecuted in Brazil – and documents filed as part of that case draw new links between illegally mined gold and major consumer brands.

Since 2017, Italpreziosi has been listed by Apple as part of its supply chain. The company uses gold in its iPhones and charging cables. Nvidia, another major tech company that makes computer chips, is also supplied by Italpreziosi.

There is no suggestion that Italpreziosi was involved in or aware of the smuggling. The company told TBIJ it was “extraneous” to the scheme.

In February 2023, Brazilian authorities launched an operation against the companies alleged to be involved in the scheme, seizing tax documents, bank records and other data. And last month the courts agreed to try 36 people from the group, who are accused of moving around 13 tonnes of illegal gold.

Prosecuting lawyers say some of the gold came from protected areas of the Amazon, including Munduruku Indigenous Territory in Pará state, where Cop30 climate talks will be held in November. Illegal mining is a major driver of ecosystem destruction in Brazil. It has caused the loss of swathes of forest in Indigenous territories and left communities with serious health problems linked to mercury, which is used in the separation process.

Raising suspicions

According to the police investigations, two Brazilian exporting companies lay at the heart of the scheme: Pemex and Amazônia Trading Express. And they are alleged to have worked with another company, US-based trader Ororeal, to transport the gold around the world. A lawyer representing accused employees from Ororeal and Amazônia said they vehemently denied involvement in any crime.

In Brazil, Amazônia Trading Express and Pemex bought from local intermediaries who used invoices claiming the gold came from legitimate mining sites. But prosecutors’ say these sites showed no signs of activity.

There were other signs some of the documents were fraudulent: one seller had issued invoices in the names of 13 dead people. And among their suppliers they listed 32 miners called Antônio.

Amazônia Trading Express and Pemex then smuggled the product into the UAE, India, Hong Kong, Switzerland and Italy via Ororeal, prosecutors say. And invoices obtained as part of the case and seen by TBIJ and Repórter Brasil now reveal that in Italy, it was destined for Italpreziosi.

According to the invoices, Amazônia Trading Express bought around £100m worth of gold showing signs of illegality from an Amazon-based company. And between November 2019 and March 2021 it appeared to export all the gold it acquired to middleman Ororeal, whose owner also controlled Amazônia Trading Express, the prosecutor alleges.

Invoices for over £2m worth of gold from August 2021 indicate Italpreziosi’s refinery in Arezzo, Tuscany, as the delivery address. Although it’s not known whether Apple or Nvidia purchased gold from Italpreziosi during this time, the refiner was listed as a supplier.

In a statement given to the police, an employee from Amazônia Trading Express said all gold purchased by the company was exported, and always to Ororeal. However, they said that although Ororeal acted as an intermediary, in practice the company sent gold directly to Italpreziosi.

Italpreziosi said that it never dealt with Amazônia Trading Express or Pemex directly but since Brazil is classified as a high-risk country, it applied its enhanced due diligence procedures to Ororeal. This included requesting a complete list of its suppliers.

The company also said it had not done business with Ororeal since 2021 and it had received no reports or alerts about suspected illegality by Ororeal until news about the police investigations became public in 2022. At that point, it said it requested further clarifications from Ororeal and then closed the account.

Italpreziosi added: “We operate with the utmost compliance and diligence as per national and international regulations.” The refiner also said it conducts a rigorous risk assessment of each customer and employs a range of industry-standard measures, including annual independent audits of its supply chain.

Italpreziosi is an affiliate member of the London Bullion Market Association (LBMA), which promotes responsible sourcing of precious metals and sets industry standards for companies.

A spokesperson said: “The LBMA is well aware of the sourcing challenges caused by wildcat miners in the Brazilian Amazon region, and has worked to highlight this serious issue to refiners.”

They added that a law in place while the alleged smuggling occurred, which allowed miners and traders to provide self-declarations of origin, was abolished in 2023. They said the LBMA is working to help strengthen supply-chain transparency around gold mining in protected areas.

A lawyer representing Ororeal and Amazônia Trading Express employees said: “The partners of the companies do not recognise their involvement in these operations and have contributed the necessary material to the proceedings to clarify the facts, trusting that justice will be done.”

“Amazônia and Ororeal have never purchased gold from indigenous or illegal lands. Both companies have the highest level of compliance, imposing strict rules on their suppliers and sending them all the documentation required by law to prove the origin of the goods purchased.”

A lawyer representing Pemex did not respond to TBIJ’s emails requesting a comment.

An Nvidia spokesperson said: “Nvidia is committed to the responsible sourcing of minerals. We routinely review suppliers to ensure compliance with our responsible mineral policy and conduct due diligence to ensure our products are sourced responsibly.”

Italpreziosi said it did not have direct commercial relationships with either Apple or Nvidia, and nor was it required to verify relationships between client companies and third parties.

Apple did not respond to TBIJ’s requests for comment.