Gold rush in South Sudan as oil prices drop

By wael Hussien

Gold mining is booming in war-torn South Sudan as the oil industry stagnates amid economic chaos in Africa’s newest nation.

The conflict between government and rebel forces in South Sudan has seen tens of thousands of people killed since December 2013. The country relies on oil production for almost all its revenue and hasn’t officially exported any gold although all that is about to change. Dove Mining of Thailand and Panamanian company 4MB have announced the country’s first official gold exports in September. The companies expect initial annual shipments to be worth $500 million with 55 percent of profits to be shared with the government, which has suffered from a cut in the price and output of crude oil.

According to the International Monetary Fund, the economy of South Sudan will possibly contract by 3.5 percent this year, after dropping 13.8 percent in 2016. Inflation was recorded at 334 per cent in May. However, the gold mining industry is bucking the trend.

Related stories

 

Many of the richest homes to gold deposits are in the south of Sudan, which is currently experiencing armed unrest. The civil war has seen authorities powerless to prevent the gold rush, as miners and traders battle over territories.

In 2016, Cordaid and the Ministry of Petroleum and Mining conducted an assessment of the gold mining sector in two states of South Sudan, between February and May 2015. It claimed that artisanal gold mining in South Sudan ‘employs’ more than 60,000 people and might indirectly benefit almost half a million. However, “with most artisanal, small-scale and exploration mining taking place in rural areas with abundant small arms and limited presence of government security forces, disputes over land access and ownership exacerbate existing conflicts”.

 

 

 

Share

Featured Articles

Middle East GDP hike of 57% if more women join workforce

By tapping into the potential of next-generation female workers, the MENA region could unlock new economic opportunities, up to US$2 trillion, reports PwC

Dialight supplies LED solutions for industrial safety

Reliance on inefficient lighting technologies are not only harmful to the environment, but also increase injury risk and cost

Top 10: Tech, AI, cloud, cyber speakers at TECH LIVE LONDON

TECH LIVE LONDON events sees technology leaders from IBM, Oracle, Vodafone, JP Morgan, Accenture and the US Space Force among the inspirational speakers

Cyber LIVE adds Vodafone head of cyber Kawalec to line-up

Leadership & Strategy

Musk’s multibillion hostile Twitter takeover – the timeline

Leadership & Strategy

Sustainable moves businesses can make to win customers, IBM

Sustainability