Sudan Rich in Gold
There are two possible explanations for the gold discoveries in Sudan. The first is that it was once a large producer of the metal. If that were the case, the country would be the world’s largest gold producer. Its resources are largely hidden from public view. The second explanation is a combination of both. Both theories have been found to be wrong, however, and may even have been wrong in the first place.
In the first case, the gold in Sudan amounts to about 50 tons per year. However, the country’s exports have dropped 85% in January, February, March, April, May, June and July of this year. Those economic problems have also spurred an uprising in Sudan this year. The other explanation is that the country’s gold reserves amount to a mere 50 tons per year, and the government has no plans to increase their exports.
In the second scenario, the country’s mining sector is in need of reorganization. The aim is to restock the Central Bank’s empty coffers. Regardless of the source of the gold, the government is seeking to develop the industry through more industrial methods. But, as with any resource-rich country, there are risks. So, the government in Khartoum has been trying to promote more industrialised methods and attract foreign investors.
The government has attempted to introduce rules for mining, but most operations remain unregulated. Even the Sudanese Ministry of Mining does not enforce its Mining Law, which means artisanal miners cannot drill much deeper than 20 metres. This largely explains why the country has the second largest gold reserves in Africa, despite its undeveloped economy. The Sudanese government has also tried to introduce regulations to improve the conditions in the mining industry.
Is Sudan Rich in Gold?
There is also a question of the benefits of mining, as prospectors are often mistrustful of government officials. In addition to the repression of artisanal mining, there are no public mining registers in Sudan. As a result, the government wants to control and tax these activities. Prospectors are often hounded into silence. However, a public interview with the production manager of a mining company in Khartoum revealed that the mining industry in the country is profitable for its investors.
Sudanese exploration companies
In addition to the artisanal gold production, the Sudanese government wants its investors to invest in semi-mechanized mining activities. In the early 2000s, it was tarmacked, but only in certain parts of the country. This development policy led to economic and social instability in the region. Moreover, mining activities are a trigger for local conflict, which further reduced the central government’s control over the resources.
mining and exploration companies in Sudan
However, the government recently imposed a new rule for the gold market, which allowed private companies to export 70% of their production without any government supervision. The government did this by allowing Algunade to manipulate the Central Bank, which had previously forced them to buy gold from the security services. The government banned the establishment of gold laboratories outside Khartoum, which explains why the gold market is still highly centralized.
