Sudan sets new limits on gold sales

Sudan has introduced new policies for the purchasing and exporting of the country’s gold reserves.

The guidelines, which come into effect today, allow the private sector to export 50 per cent of the gold it produces, but the remaining 50 per cent must be sold back to the Central Bank of Sudan.

Analysts say the new policy is part of the government strategy to recoup the revenue loss following the succession of South Sudan in 2011. Four years ago, the government opened the Sudan Gold Refinery and initially banned the export of gold ore from Sudan by private companies.

The new refinery, which also processed silver, was intended to reduce the amount of gold smuggled to other markets, such as Dubai. However, the government has not been able to prevent much of the gold leaving the country and the restrictions became a disincentive to produce gold, 93 per cent of which is currently mined by the traditional market – an estimated 361 private companies and ordinary Sudanese citizens.

Regaining losses

Sudan had expected that the sale of gold would reach up to $6 billion a year, but latest figures release by the General Manager, Mohamed Abu Fatima, of the Corporation of Geological Research, suggests that Sudan has revenue of around $4 billion annually.

Analysts say Sudan continues to have great gold mining potential, but production figures are hard to verify because of the unofficial informal mining sector. It is understood that there are 4,000 independent mining sites across the country.

In announcing today’s changes, the Minister for Minerals, Ahmed Al-Karouri, appealed for outside investment to mine the 30-odd minerals available in Sudan.

The door is wide open to all who want to invest in the mining sector and there are huge benefits and concessions available in this industry.

For his part, the Director of the Central Bank of Sudan, Hazem Abdelgadir, announced the Bank was prepared to process requests from companies, individuals or businesses to export gold beginning this week.

Sudan is trying to boost exports of gold and other non-petroleum products after the separation of South Sudan five years ago, which resulted in a 75 per cent decrease of its crude oil production.

The government aims to be Africa’s third-largest gold miner behind South Africa and Ghana which could push it into the top 15 global producers.