Does Sudan Have Gold Mines?
Sudan Have Gold Mines
If you ask a Sudanese to name the largest gold mining company in the country, they would likely say M-Invest, which is owned by Yevgeny Prigozhin, a Russian tycoon. The company is also reportedly linked to the Kremlin, which has been accused of using its military to intimidate civilians in Africa.
The company has a strong asset base, which includes five prospecting concessions in the north-east of the country. It is slated to begin exploring its assets soon. As a result of its work, it is reported to have intensified at its project site after Russia’s invasion of Ukraine. However, it denies these claims and says it does not train military personnel.
In the past decade, it has become apparent that the Sudanese government’s Mineral Wealth and Mining Development Act does not provide effective environmental regulations. In fact, the government estimates that about 90% of Sudan’s gold production is smuggled out of the country. This could mean hundreds of millions of dollars in lost government revenue. A new government is advising on how to improve production and make it contribute more to the country’s public finances.
Does Sudan Have Gold Mines?
According to the World Bank, artisanal miners in Sudan produce about 95 percent of the nation’s gold. In addition, a refinery in Khartoum has helped to increase the quality of gold produced by the artisanal sector. Nevertheless, the national government still underestimates the amount of gold that is being smuggled out.
Another company, Meroe Gold, has connections to the Wagner Group, a network of private military operatives. They have been fighting alongside RSF during the Darfur conflict. During the civil strife in the early 2000s, many investors and operators were put off by the instability. But the Wagner Group has since expanded aggressively across Africa.
The Sudanese government has been slow to implement effective laws to regulate the industry. However, it has attempted to introduce regulations for gold miners. For instance, the Central Bank of Sudan is responsible for regulating and promoting the trade of gold. Additionally, it has been attempting to improve the marketing of gold, which is essential to attracting foreign investment. While the government has been unable to enact a unified ESG framework, it has offered incentives to encourage growth of industrial mining production. These include exemptions from the annual rental costs for concessions and incentives to attract foreign capital.
There are several reasons for the decline in the gold industry in Sudan. One of the main reasons is that the national government has failed to enforce mining law. Instead of preventing illegal activities, the regime has issued about 50 mining licenses without a thorough review.
As a result, most operations in Sudan are rudimentary. Most of the country’s mines collapse every year. Many artisanal and industrial operations rely on traditional extraction methods. Other requests for the government include stricter environmental regulations, a complete dismantling of mining factories, and the reduction of cyanide use.
Although the government has tried to develop stronger laws to regulate the industry, the situation is grim. According to one analyst, most of the artisanal miners’ safety measures are still lacking. He also points out that a large percentage of the gold being smuggled out of the country is coming from informal artisanal mines.
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