Russian delegation in Sudan explores gold mining and broader investment
September 22, 2024 (PORT SUDAN) — A Russian trade delegation has been in talks with Sudanese officials about starting gold extraction from multiple sites in the country as soon as next month, government sources told Sudan Tribune.
The discussions follow the signing in June of an agreement for gold exploration and extraction between Sudan’s Ministry of Minerals and the Russian company Zarubezhgeologiya.
During the delegation’s visit last week, Sudan’s minister of minerals, Mohamed Bashir Abu Numo, said on Facebook that talks focused on investment opportunities and the use of modern technology in the mining sector.
The Russian delegation, led by Viktor Chemodanov, chairman of the Russian-Sudanese Business Council, included representatives from the Russian Chamber of Commerce and Industry. They met with officials from the Sudanese Mineral Resources Company and the Geological Research Authority.
Sources said the talks centred on gold extraction and were expected to begin soon after technical teams from Russian companies arrive in Sudan next week. The arrangements are aimed at offsetting significant revenue losses, addressing wartime spending, and countering the collapse of the Sudanese pound and resource scarcity, they added.
A former member of the Employers’ Union, speaking on condition of anonymity, called the visit important but speculated that its primary purpose might be to “secure gold imports in exchange for weapons.”
New Russian proposal
According to a statement on Sunday from Sudan’s Seaports Corporation, the Russian delegation also discussed Russian companies using Sudanese ports as a gateway to Africa, given their strategic locations.
The director general of the Seaports Authority said he had met with representatives from various sectors during his recent visit to Russia, and they expressed interest in investing in Sudan. He welcomed the delegation and highlighted potential projects in sectors like ports and tourism. He also suggested developing new ports south of Port Sudan and building an airport to support tourism.
In response, the Russian ambassador said some Russian businesspeople wanted to establish a Sudanese-Russian business center and a logistics hub.
The meeting concluded with an agreement to prepare documents and maps to be presented to Russian businesspeople through the embassy.
Upon his arrival in Port Sudan last week, Mr. Chemodanov said the visit aimed to build on the efforts of a Sudanese-Russian ministerial committee and advance relations between the two countries in trade, industry and investment.
Businessman Al-Sadiq Qasim al-Sayed said the Russian delegation’s visit aimed to help develop relations and that Sudan could benefit from Russian technology to boost its economy.
Government estimates suggest gold revenues over the past nine months have reached around $1.3 billion. However, because of smuggling and control by military and security agencies, there are no consistently accurate statistics on gold production in Sudan.
After the war began in April, local capital shifted entirely to the safe states that were not experiencing clashes between the Sudanese army and the Rapid Support Forces. But this has not been enough to offset the decline in gold production, a government source said.
A source at the Sudanese Mineral Resources Company said the halt in production in the Darfur and Kordofan regions had created a significant gap, with production now concentrated in the Red Sea, River Nile and Northern states.