Owns Gold Mines
If you’ve ever wondered, “Who owns gold mines in Sudan?” you’ve come to the right place. The government is eager to control and tax the income-generating activities in Sudan, and has a reputation for mistrusting prospectors. A recent interview with the production manager of a mining company indicates that the government does not have much faith in prospectors. Nevertheless, the new government has taken steps to encourage mining, as it contributes more to the public purse than oil.
Despite government efforts to reform the mining industry, information on beneficial owners remains opaque and vulnerable to corruption. This lack of transparency has facilitated significant corruption in South Sudan over the last decade. In order to prevent such scandals from recurring, the government should hire an independent third-party to audit mining companies, investigate beneficial ownership and determine if politically exposed individuals have unfairly profited from mining companies. A publicly available database of company owners and their subsidiaries would be a valuable tool for anti-corruption advocates and would be an incentive for legitimate investment.
A large portion of the gold in Sudan is produced by artisanal miners. The artisanal industry employs two million people. According to Baldo, artisanal mining accounts for 95 percent of gold production. Many of these miners use dangerous methods to find veins of gold, without safety precautions. However, the experience of these miners allows them to find gold in unexploited places.
A large part of the conflict is over who owns the gold in Sudan. In 2017, the RSF seized the Jebel Amer gold mine in Darfur, which they then control. The RSF is suspected of controlling three other goldmines in Sudan, as well. It’s important to note that gold is the most valuable commodity in Sudan, with exports to the UAE totaling $16 billion annually.
Who Owns Gold Mines in Sudan?
Mining is an essential part of the Sudanese economy. The mining sector has grown in importance as the central bank needs foreign currency. However, the Sudanese government is also seeking ways to increase its artisanal gold production. By investing in gold mining, the central bank can improve the quality of gold and make it more attractive to foreign investors. Further, a new organisation aimed at converting the Central Bank into the ultimate buyer of gold and become the only vendor of gold in the international market.
In early 2020, the government will open the gold export business to private companies. This will free up the trade in gold, which had been restricted by the former government. Private miners can export up to 70 percent of their production, while the rest goes to the central bank for its use. Private investors will be allowed to participate in the trade of gold in Sudan, but they will need to meet a stringent requirement to stay accredited.
Gold mining companies in Sudan
There is a serious issue with Sudan’s transport network. The road system was only partially tarmacked in the 2000s in useful areas. The rest of Darfur is still largely untouched. Observers say the RSF is a direct threat to a peaceful transition in Sudan. The country also faces a serious lack of oversight over its economy. And that’s just the beginning of the problem.
