Is Sudan's gold a fuel for conflict or a source of development?

Arabian Sea Newspaper - Special

**Arab Sea - Follow-ups:** Over the past two decades, gold in Sudan has transformed into a strategic resource, a source of government revenue, wealth for local and regional businessmen, and a direct and indirect source of funding for armed parties. Since the outbreak of war in Sudan - between the Sudanese Armed Forces led by General Abdel Fattah al-Burhan, and the paramilitary Rapid Support Forces led by Mohamed Hamdan Daglo (known as Hemedti) in (April 2023) - the pace of gold exploitation has escalated, and regional and international trade chains have emerged linking Sudan's mines to Dubai markets and other ports, with the emergence of smuggling networks that sometimes link the sector to Russian operators linked to armed entities. This combination has made gold a key player in prolonging the conflict and threatening development potential. **The History of Gold in Sudan from the Nubian Kingdoms to the Modern Era** Ancient History: The Nubia and Meroe region has been known for thousands of years for extracting gold for trade with ancient Egypt; this is part of the historical memory of the region. Muhammad Ali Pasha's campaign to Sudan in 1820-1821: It is one of the most prominent milestones in the history of Egyptian expansion in the nineteenth century, and it came with clear strategic and economic motives, which historians summarized in two phrases: the search for gold and men. Sudan is rich in gold, especially in areas such as Fazogli, which is located on the eastern border of Sudan with Ethiopia, between the Blue Nile and the Sobat River, and includes mountains in the current Asosa region in the Benishangul region and the Nuba Mountains. Modern History: Industrial mining began to take an organized form in the late twentieth century, such as the Ariab project in the Red Sea or the area known in short as Al-Hasai/Hassai, and its production began in 1992, and it produced millions of ounces over the decades. Geology: Gold in Sudan from the Nubian Shield is part of the Arabian-Nubian Shield, and a rocky belt rich in volcanic formations and trench layers extends across Sudan, Egypt, and Saudi Arabia, appearing in the Red Sea, northern regions, the Nile River, the Nuba Mountains, Kordofan, and extensions in Darfur. This geological nature explains the wide spread of gold deposits. **Gold Production Sites in Sudan: Major Centers and Production Volume** 1. **Hassai Ariab in the Red Sea State:** It is the oldest and largest industrial site in a series of open-pit mines, and it has undergone treatments that have led to cumulative production of millions of ounces. The site is the industrial hub that has transformed the Red Sea into a major concession area. 2. **River Nile State (Abu Hamad, Al-Obaidiya, Wadi Al-Ashaar):** These are traditional and industrial mining clusters, and areas rich in river deposits. 3. **North/South Kordofan (Nuba Mountains):** These are alloys and ethnic deposits exploited with traditional and industrial tools in security-disturbed areas. 4. **Darfur (Jebel Amer, North Darfur regions):** The entry of armed actors and militias has increased due to the presence of deposits, which has increased violence around mining sites. 5. **Blue Nile, Kassala, Northern:** These are smaller sites for artisanal mining and exploration. **Volume of Gold Production in Sudan in Official Figures and Independent Estimates (Official and Recent Figures)** Announcement of the Sudanese Mineral Resources Company (SMRC): Production of 37 tons in the first half of 2025 (official statements from the company's director in internal interviews). Government and media statistics circulating: They indicate that Sudan's production reached about 64 tons in 2024 (government statements and media outlets reported the figure), and that official export revenues amounted to about $1.57 billion for that year. Before the conflict (years 2021 and 2022): Databases such as the CEIC economic database, the most important global sources of economic and geographical data, widely used in strategic, economic, and environmental analysis, and the USGS geological and geographical database indicate fluctuating official production, for example, 41.8 tons in 2022 according to some reports, then officially registered production jumped in 2024-2025 due to the expansion of traditional mining and export facilities. Independent studies and investigations: They indicate that the traditional/artisanal sector has produced about 50-70% of the actual total in recent years; and in 2024, for example, traditional mining production was estimated at about 53 tons compared to about 11 tons for companies holding industrial concessions (the figures vary between sources, but they express the dominance of artisanal production). The state may announce official production figures, but what actually enters the state's reserves or international markets is affected by smuggling rates and local purchasing operations. Therefore, any final estimate of (how many tons of gold actually left Sudan) requires combining government data + third-party export data + field investigations, and this is what I followed in this file. **Gold in Sudan** There are many companies operating in gold extraction in Sudan, and here is a list of them: **Ariab (The Oldest Industrial Mine)** Description and Location: The (Hassai) project is an industrial gold mine operator in the Red Sea since 1992. The site is one of the oldest modern mining projects in Sudan. Cumulative and Systematic Production: The company's figures and mining sources indicate that the field has produced approximately 71 to 87 tons cumulatively since 1992 (this is a cumulative figure over the years of operation, not a fixed annual production). Form of Contract/Term of Concession: The company was operating under long-term concession contracts (historical concession contracts often starting with a term of 20-25 years with the possibility of extension), which are contracts preceded or followed by changing ownership arrangements between government, local, and foreign investors. Government Contributions: Throughout history, there have been partnerships or shares for the government of Sudan in the project management entity or through state-owned property institutions, and the exact nature of the ratios has changed through ownership transfer deals. **Emiral Resources Company** It is an independent international mining company, founded in 2013 and headquartered in Dubai, United Arab Emirates. It provides integrated expertise in the mining value chain, from exploration, production, and operation, to consulting and engineering in the fields of mining and oil, and owns shares in projects such as the Kush project. Exploration/Production Sites Block-30: Sites in the Red Sea, and concession ranges near the coastal strip and near eastern Sudan. It has announced processing units and production designs reaching hundreds of thousands of tons of raw ore annually in some facilities. Production Volume (What is Announced/What Reports Showed): Chatham House (Royal Institute of International Affairs in London) reports mentioned statistics indicating production of about 30 tons in 2020 for the company as an announced value (production varies from year to year). Contracts and Term of Concession: Concession and production contracts are often long-term (20-25 years) or exploration licenses that turn into a production concession after fulfilling conditions. In the case of some commonly mentioned partnerships, the state is represented exclusively through the Sudanese Ministry of Minerals or government institutions with a zero to 25% share depending on the project contract. For example, Emiral Resources' share in the Kush project was 68%, the Sudanese Ministry of Minerals 25%, and another shareholder 7%, which illustrates the state's formal participation in some projects. **Russian Companies** They operate in projects linked due to the Rapid Support militia's connection with the Russian Wagner to obtain concessions or exploration contracts in other locations, and used devious commercial methods to pass gold. The reports do not provide detailed and reliable production figures for each company, but investigations indicate that the companies associated with the Russians played a role in opening gold supply lines and policies to facilitate the access of gold to international networks. **Local Companies and Entities Owned by Local Actors** In many states, there are multiple local companies, some of which are officially registered and have concessions, and some of which belong to local businessmen or purchasing networks that buy from artisanal miners. **Mining Contracts** The basic legislative framework currently is the Mineral Wealth and Mining Development Act of 2015, which replaced previous legislation, and establishes mechanisms for granting exploration licenses and transferring them to production concessions, with environmental requirements and technical standards. Exploration licenses are short-term (a few years) and can be upgraded to a long-term production concession, usually from 20 to 25 years, with conditions for extension, and this is common in old and new industrial agreements, and this pattern is still used in major deals. **Distribution of Production Between Companies and the Artisanal Sector (Detailed, 2024 as an Example)** 2024-2025 Classification Report: Official and independent analyses agree that the traditional sector (public/artisanal) produced about 53 tons in 2024, while concession companies collectively produced about 11 tons. The figures are approximate and vary depending on the data source, but they reflect the large gap. This means that official companies (even large ones) were responsible for a small part of the tangible annual production, while unregulated artisanal mining often formed the backbone of the actual quantities that often entered smuggling networks. **Smuggling: How is Gold Smuggled from Sudan? Actors in the Smuggling Chain** Small