Sudan Sees Mineral Wealth as Eminent Economic Resource
6 min readBy Hana Abdel Hai
Since more than two years back, the Sudanese government has been focusing on mining as the ultimate source of country’s income, particularly when government knew for sure well ahead that Southern Sudan secession was eminent.
According to government, the secession of south Sudan meant loss of part of petroleum l revenue to the nascent state.
Eventually, the government concentrated its efforts on mining, particularly following discoveries which showed that 45 percent of the country land is rich in various minerals, particularly gold.
Thus, the government has licensed more than 200 companies in addition to individual mining by citizens to look for the yellow metal and get it. Chrome and other minerals are also abundant in the country.
According to many economic experts, the country’s economy both in the short-and long-terms following secession would be better.
They further suggest Sudan is capable of overcoming loss of revenue of South Sudan petroleum which used to represent about 70 percent of country’s budget.
Economic experts also say minerals would form the perfect taking off point for the Sudanese economy in the coming years, particularly when we know that minerals and gold revenues during the present year represent double of that which the country used to get from petroleum.
For its part, the ministry of minerals has said it is expected that during the current year, gold production would jump from 30 tons in 2009 to 74 tons by the yearend.
These incomes can provide the country with about $3 billion apart from $ 1 billion in revenue from iron, chrome and other minerals ores.
The Sudanese-Chinese gold mining partnership is one of the biggest of its kind and the recent visit of President Al Bashir to China is considered one of the most important visits conducted by the president recently.
With the interest of the Chinese to invest in gold mining growing high, this would open up the way for investments in the field of agriculture and mining of other minerals and the few coming years would prove the viability of such investments.
In some of his statements, the former mining minster, Dr. Abdel Bagi Al Jailani, has said China is quiet satisfied and hopeful that Sudan’s mineral exports would further develop. The minister lauded the big role China is playing in mining and said China’s efforts have never dwindled but would continue to increase.
For its part, the ministry of mining has said it expects gold will contribute $3 billion to the country’s budge this year. The ministry expects that gold production will exceed 70,000 tons following the entry of a number of companies in the field.
The ministry further said a number of companies are expected to join production field, including 5 companies that are expected to produce 14,000 tons.
It added that it would work to develop and train personnel working at this sector and reorganize individual mining by citizens in conjunction with concerned states’ governments for improving the infrastructure and providing the appropriate working environment in this important sector.
For his part, head of the economic committee at Parliament, Babiker Mohamed Toum, has said in a press statement that the gap in state’s revenue following secession of the south and exit of considerable income from petroleum would not affect Sudan’s external balance of payment.
He added, government has many alternatives that have been preplanned for short- and long terms.
“The shocks to which the Sudanese economy was subjected in the past have made the country stronger and capable of overcoming any obstacle and gold will compensate for the lost petroleum revenue,” he said.
He added both individual mining by citizens and modernization of the mining process have been a true addition to the economy of the country since it has created jobs, with about 200,000 individuals working now in sector.
Toum emphasized the role of mining in that it supports export and enhance pace of development at mining regions.
Meanwhile, the mining committee at ministry of mining has recently discussed a number of important issues, including the review of applications received from companies who have expressed their interests to have concession blocks.
It is worth noting that the ministry, which is the buyer of gold, has closed smuggling points and created a specialized department for monitoring companies working in gold mining.
The entry of central bank of Sudan as gold buyer and the introduction by the bank of a policy of incentives, all these policies are expected to end smuggling.
In addition to gold, Sudan is rich in many other minerals, such as chrome with the country’s reserves of this mineral estimated at about 2 million tons.
The high-quality mineral is found in Kurmuk, Geisan, Nuba Mountains and northern state.
Other minerals are copper, magnesium, salt, marble and iron which are found in a number of regions of the country, particularly North and Red Sea states.
Iron is in very high demand due to its use in many industries.
http://news.sudanvisiondaily.com/details.html?rsnpid=203540
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