The Sudanese Minister of Minerals, Nour Al-Daim Taha, announced strategic plans aimed at reducing gold smuggling, which include electronic monitoring and the formation of a joint task force from military and security agencies. These steps are part of new investments totaling 3 billion dollars in the gold and rare minerals sector.
In his remarks, Taha noted that Sudan's gold production reached 70 tons last year, while the quantity exported through official channels did not exceed 14.5 tons, reflecting a significant gap between production and export.
Event Details
Sudan ranks first in the Arab world and third in Africa in gold production; however, the minister emphasized that the country does not solely rely on gold but seeks to diversify production from other minerals. These plans include expanding exploration and encouraging both national and foreign investment in rare and industrial minerals, amid indications of large quantities available in the country.
The Ministry of Minerals faces significant challenges related to traditional mining, which accounts for 80% of production. The ministry has begun to regulate this sector and monitor the chemicals used in extraction processes due to their negative impacts on the environment and human health.
Background & Context
The Sudanese government aims to launch a joint force from the army, police, and intelligence to combat gold smuggling through land and air outlets. Encouraging policies have also been established for exporters, including purchasing the metal at global market prices, along with arrangements to establish a gold exchange in Khartoum.
Three gold refineries have been installed, one government-owned and two private, which will help facilitate the production and export process. The significant foreign investment in minerals, amounting to 3 billion dollars, reflects investors' desire to enter the Sudanese market despite current challenges.
Impact & Consequences
Gold production in Sudan declined after the war, where production was spread across 14 states before dropping to 6 states. However, production saw an increase from 64 tons in 2024 to 70 tons last year, demonstrating the country's ability to recover and grow in this sector.
Mining companies face multiple challenges, including intersections between 13 government agencies involved, as well as gold production outside state control in the Darfur region and parts of the Kordofan states, where Rapid Support Forces are prevalent.
Regional Significance
These plans and investments in the minerals sector represent an important step towards strengthening the Sudanese economy and may positively impact Arab markets. The success of these investments could encourage other countries in the region to better explore their mineral resources.
In conclusion, these developments highlight the importance of the minerals sector in Sudan as a key driver of economic growth, necessitating further support and cooperation between government entities and investors.