Bank of Sudan hardens control measures in gold mining

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Bank of Sudan hardens control measures in mining

The Central Bank of Sudan (CBoS) issued a new circular to banks and related authorities on, banning the export of gold by government agencies and foreigners, individuals, and companies, excluding concession companies operating in mining. The circular also limits the role of the Central Bank of Sudan to purchasing gold for the purpose of building reserves only.

The measures outlined in the circular, to come into effect immediately, will apply to the trade and export in bullion and unwrought gold, with the value of transactions (calculated according to international stock exchange prices), to be certified by the Gold Exporters union.

The CBoS circular allows concession companies to export 70% of their production, after deducting government shares, and the remaining 30% is to be sold to the Bank of Sudan or its authorised representative.

It also allows small mining companies to export 15% of the remainder of their production after the government share of the total production is collected, provided that the proceeds are kept in a special account for the companies with the Bank of Sudan. The remaining 85% is to be sold to the Bank of Sudan or its representative, and the owner of the proceeds is s allowed to use 70% for the import of strategic goods, and 30% for essential goods.

Export regulated

Sudan is reportedly the second-largest producer of gold in Africa and the ninth in the world. The production however is often driven by unregulated, artisanal (individual subsistence) mining, and routine gold smuggling across international borders is a constant problem. Estimates are that between 50% and 80% cent of Sudan’s gold is smuggled out of the country. It is also known that proceeds have been used to finance the internal conflict.

The total gold production of Sudan in 2020 reached 36.6 tons, which is 9.6 tons more than in 2019, according to official figures quoted by the director of the Sudanese Company for Mineral Resources, Mubarak Ardol, in January 2021.

 

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