Does Sudan Produce Gold?
Sudan Produce Gold
There are a number of foreign companies operating gold exploration operations in Sudan. They include Perseus Mining, a specialist African company. The company has operated gold mines in Cote d’Ivoire and Ghana and has a strong African background. It has a portfolio of sustainable assets and is aiming to increase production to 500,000oz in 2022.
Perseus Mining describes Sudan as an attractive mineral province in Africa. It says that the country is under-explored and is highly prospective. As such, it is a suitable destination for a significant gold project. But there is some concern over the security of the country’s mines.
The main challenge facing the Sudanese authorities is to protect the citizens of the resource-rich country. The artisanal gold mining sector has been an important source of employment for thousands of young people. However, there have been serious security issues associated with the movement of over 1.5 million youth to these sites.
Does Sudan Produce Gold?
In addition, the government has to take stringent measures to control the gold mining activities in order to safeguard the citizens of the country. To this end, the authorities should inform the public about the local quotas, regulatory bodies and legislative bodies in the country. Also, they should explain to the public how the concessionaire companies contribute to the local development.
There are also questions about the involvement of South Sudanese leaders in the gold mining business. Some of the top leaders in South Sudan claim to have no connections to the industry. This is despite the fact that they claim that they have invested in a major gold mining project. Moreover, it is reported that some of them have forged links with Russian firms. A number of Western officials say that Russian-produced gold has been smuggled out of Sudan.
Meanwhile, the Central Bank of Sudan has monopolized the gold market in Khartoum. This enables producers to avoid paying taxes. Furthermore, it is used to purchase gold produced by artisanal miners at a cheaper price than what is available on the international market.
The government has not only taken steps to boost industrial gold production but also to improve marketing of the gold. Additionally, it has made the Central Bank the sole purchaser of gold from artisanal miners. At present, gold is only sold through the Central Bank at a significantly lower price than what is available on the international market.
Despite these challenges, the gold sector has seen some progress. For example, Khartoum has improved the quality of the gold produced by the artisanal sector. Likewise, the new government is also advising on safer mining practices.
In addition, the new government has also introduced a series of new laws to attract foreign investment. These laws are intended to encourage growth in the formal mining industry.
In a recent interview, the production manager of a national public agency that deals with the mining sector said that he wished for the government to impose a stricter control over the production of gold. He pointed out that a large amount of gold is still exported unofficially.