Sudan mining companies threaten gold production halt over central bank pricing

September 18, 2026 (KHARTOUM) — Sudan’s union of mining companies threatened to halt gold production from early October to protest the central bank’s purchasing and pricing mechanisms, warning that current policies make operations financially unsustainable.

The union submitted a formal memorandum on Sept. 15 to Minerals Minister Nour El-Daim Mohamed Ahmed Taha and the head of the Sudanese Mineral Resources Company, stating that formal dialogue with the central bank had yielded no results.

The companies called for the cancellation of central bank circular No. 11, issued on May 13, 2026. They argued that current official prices fail to reflect gold’s actual economic value or the rising operational, security, and logistics costs driven by currency depreciation and inflation.

Producers rejected shouldering the burden of broader monetary distortions and foreign exchange volatility, insisting they should not bear the cost of managing the currency market.

The union also expressed concern over purchases conducted through central bank intermediaries, demanding transparency over commissions and price differentials to ensure middlemen do not secure better margins than actual producers.

According to union estimates, concession firms, small-scale miners, and tailings processors account for about 17% of Sudan’s total gold output, a vital source of foreign currency for the war-battered nation.

Member companies plan to begin operational shutdowns on Sept. 30, with production ceasing completely on Oct. 1 if authorities do not meet their demands.

The union requested an urgent meeting before the planned shutdown with the central bank, the minerals ministry, and company representatives, and proposed a permanent consultative committee to coordinate gold policies and maintain state revenues without crippling output.