Gold Mining Companies
The rapid growth of the South Sudanese mining sector in recent years has sparked fears that it will be a vehicle for violence. The ineffective accountability mechanisms, the opaque corporate landscape, and inadequate due diligence have made this sector ripe for abuse. The mineral wealth of the country may also spark a more violent competition among its mining companies. As a result, the US Department of State should implement public reporting requirements for mining companies and require them to disclose their mining policies and operations.
While the mining process in Sudan relies on semi-mechanized operations, the government of Sudan is a major shareholder. International joint ventures with Sudanese partners dominated the industrial gold mining in Sudan throughout the 1990s and early part of the new century. Many of these companies employed expatriates, and the ownership structure changed a few times. However, the company’s role in Sudanese mining activity must be evaluated.
The government aims to control and tax these income-generating activities, which may have led to the deterioration of security and civil order in eastern Sudan. Prospectors, in particular, are often distrusted by the government, and the government hopes to tax and regulate these companies. Moreover, the Beja Congress has actively questioned the conduct of these companies, citing safety concerns. However, despite the recent security crisis in Sudan, the government continues to encourage foreign investment in the region.
Gold Mining Companies in Sudan
The South Sudanese government is attempting to reform its mining sector by regulating its industry, but the weak regulatory environment means that it is also vulnerable to exploitation. The son of President Salva Kiir and former Vice-President James Wani Igga are listed as shareholders of a mining company with three active licenses. The company’s owner, Ashraf Seed Ahmed Hussein Ali, or Al-Cardinal, has been placed under Global Magnitsky sanctions.
The lack of transparency in this sector is also reflected in the political economy. Most government announcements provide only superficial information about mining. They list company names, countries, and general numbers of signed agreements. Only the disclosures of mining companies can reveal the precise relationship of a corporation to specific mines. The public debate is often dominated by only a small group of companies that are actively involved in this industry. The effort to compile a comprehensive overview of industrial mining is strenuous.
gold mining companies in sudan
The Sudanese mining industry accounted for less than a percent of the country’s GDP in 1990. Its mining industry had a range of mineral types, with the size of its reserves unknown. Commercially exploitable quantities of petroleum were discovered in the late 1970s, but oil exploration was suspended in the south because of security issues. Nonhydrocarbon minerals of actual or potential commercial value included gold, copper, iron, manganese, and uranium.
Orca Gold Inc. is a Canadian resource company focused on exploration in Africa. With management that has built significant mines in several countries, Orca Gold is constructing a leading gold project in the region. Currently, the company is focused on its 70%-owned Block 14 Gold Project in Sudan, with a revised Feasibility Study due in September 2020. However, while this company has been successful in developing a gold mine, it is not yet profitable.
