Gold production in Sudan dwindles to two tons due to ongoing conflict
September 14, 2023 (KHARTOUM) – A Sudanese public company has disclosed a significant decline in gold production during the five-month-long conflict, plummeting to a mere 2 tons, in stark contrast to the previous year’s output, which had exceeded 18 tons.
Miqdam Khalil Ibrahim, the Assistant Director of the Mineral Resources Company, made this revelation in a press statement on Thursday. He stated, “The cumulative gold production from corporate sectors amounted to 2 tons between April 15 and the end of August 2023.”
Ibrahim highlighted that the total value of the gold produced stood at $124 million, with the government’s share amounting to $25.5 million.
While the Mineral Resources Company serves as the government’s technical arm for monitoring gold production, it has struggled to regulate private mining activities. Private mining currently contributes to approximately 75% of gold production, with a significant portion of the product being smuggled abroad.
Mining companies are currently exploring roughly 173,000 square kilometres of land, equivalent to 16% of Sudan’s total area, while national companies are exploring approximately 62% of the country’s landmass.
Economists estimate that Sudan annually produces around 100 tons of the precious metal, with 80% of it being illicitly transported abroad through various means. Some of these smuggling routes previously included activities at Khartoum International Airport before the outbreak of the ongoing conflict.
The ongoing conflict has had a profound and detrimental impact on economic activities. According to a recent report submitted to the Security Council by the UN Secretary-General on September 13. It is estimated that economic activity experienced a substantial decline, ranging from 33 to 42 per cent during the initial three weeks following the commencement of the conflict.
Mubarak Ardol, the Director of the Mineral Resources Company, expressed optimism about the company’s continued contribution to supporting the economy, covering workers’ salaries, and addressing shortages in food, petroleum, and electricity.
Ardol also urged for an increase in gold production, emphasizing the pivotal role of the Mineral Resources Company in the national economy as a driving force behind a secure and advanced mining industry.
In response to allegations of gold smuggling to the Russian Wagner Group, authorities acting under the orders of the military have frozen the assets of companies associated with the Rapid Support Forces. Some of these entities were engaged in gold prospecting activities.
(ST)