Who Owns Gold Mines in Sudan?
Owns Gold Mines in Sudan
Despite a recent spike in the price of gold, the number of Sudanese mining companies remains small. A handful of state-run companies oversee a majority of Sudanese mining. Some of these companies have been criticized for promoting a shady trade in conflict minerals. The industry is also rife with corruption.
The World Bank estimates that at least 50 per cent of Sudan’s gold comes from artisanal mining, which is often illegal. This means that the country’s official output of gold is significantly underestimated.
In the past, many gold mines in Sudan were owned by paramilitary groups. They were allowed to operate as a reward for their service in the Darfur region where the mineral wealth is located, but many of these groups are accused of using the resources for personal gain, rather than providing local communities with a sustainable income.
As a result, a significant percentage of the gold from these mines is often smuggled out of the country by unauthorized traders. This has a negative impact on Sudan’s economy.
According to data from the World Bank, a large portion of the country’s smuggled gold is purchased by Russia. This is done through a helter-skelter selling process where transactions are made off the books.
This has led to the involvement of a company that the US Treasury says has ties to the Russian government’s mercenary arm, the Wagner Group. Its name is Meroe Gold, and the company has permits to conduct a variety of mineral extraction in Sudan.
The company is based in the town of Al-Ibaidiya, in North Darfur. It has a processing plant that CNN was able to visit.
Who Owns Gold Mines in Sudan?
Upon visiting the compound, the guard told CNN via walkie-talkie that the site belonged to a “Russian company.” This was verified by a Sudanese security source who was in attendance.
While this may sound like a convenient excuse for the smuggling of gold, it is also in violation of international law. This is because gold can be classified as an arms control material – and is therefore subject to sanctions by the United States and other nations.
Another problem with smuggling gold out of Sudan is that the money it generates frequently funds the armed conflict in the south of the country. The gold is then sold on the black market to buy weapons and ammunition.
The resulting wars have cost the region tens of thousands of lives and displaced hundreds of thousands more, leaving behind depleted natural resources. The region is home to one of the largest deposits of gold in Africa.
In recent years, a new wave of traditional gold miners have been coming to this area in search of riches. Their operations leave hazardous white-powdered waste that is spread across farmland, water sources and residential areas. This has a serious impact on the environment and can also cause long-term health problems for the people living in the affected areas.
Despite a recent increase in the price of gold, a large percentage of Sudan’s gold comes from artisanal mines that are often illegal. This means that the country’s output of gold is significantly underestimated.