Gold Mining Companies in Sudan
Sudan is home to the second biggest gold reserves in Africa, but what happens when this wealth is diverted from its intended purpose? It’s a question that has haunted the region for years. Despite its economic problems and political turmoil, Sudan is still one of the world’s most profitable gold-producing countries.
Gold Mining Companies in Sudan
In the past, it was Sudanese artisanal miners who made up most of the nation’s production, but as the country struggles to make ends meet, it has become increasingly important for the government to control this resource. It has created a new organisation to extract and sell the country’s gold resources, and it has made a concerted effort to develop industrial gold mines in more privileged regions.
While the government has taken some steps to regulate the mining industry, many of its attempts have failed. It has banned the use of toxic chemicals such as mercury and cyanide, but it has not enforced these laws. Instead, miners continue to use the chemical indiscriminately in less-regulated outlying areas.
Top 5 Gold Mining Companies in Sudan
Artisanal gold mining in the country is a lucrative business for locals, who have a deep understanding of the process and can dig into the earth safely. But it can also pose serious risks, says Suliman Baldo, a US-based researcher who has spent five years investigating the industry.
Sudanese Companies engaged in Gold Mining
“In many places in the country, artisanal miners dig trenches deeper than 20 metres, which can be dangerous,” he says. Once the trenches become too deep, they can easily collapse, he said. Unlike industrial operations, which often require a large number of workers, artisanal mining is typically carried out by dozens or even hundreds of locals, according to Baldo.
The government has tried to control artisanal mining through the creation of the Sudanese Mineral Resources Company, a state-owned entity that oversees the nation’s mineral sector and its exports. It has also imposed tough regulations on the industry, including the ban on cyanide and mercury in the extraction process.
However, despite these efforts to regulate the industry, artisanal mining remains an essential part of Sudan’s economy and will continue to be for now. The country’s government hopes to eventually eliminate artisanal mining altogether, but it will take time and is unlikely to do so.
Firms involved in Gold Extraction in Sudan
In the meantime, it has turned to an opportunistic strategy aimed at exploiting the gold resource in Sudan, which it views as an asset that can help finance the national deficit and keep the economy growing. The government has a history of intervening in the gold sector to boost production, and is now actively encouraging foreign companies to invest.
There are currently several Gold mining companies in Sudan, and they are all seeking to expand their presence and increase their output. Some, like Perseus, say that they have a strong track record in the African country and are confident that their plans to build and operate Block 14 are on track to deliver 500,000oz of gold over the next four years.