South Sudanese Mining Industry
The South Sudanese mining industry has experienced a rapid development in recent years, with some early reports suggesting that the sector could become a major driver of economic growth. Yet, a number of red flags, including ineffective accountability mechanisms and an opaque corporate landscape, have exposed the industry to state capture by bad actors within President Salva Kiir’s ruling clique.
The mining industry is largely dominated by artisanal mining, where small-scale miners use local traditional methods and equipment to mine for gold. There are also industrial-like operations concentrated in the Gorom and Kapoeta areas, but the government has limited control over these activities.
As the country’s economy deteriorated, oil prices collapsed and international aid was withdrawn, the government turned to mineral wealth for survival. A mining law is due to be rolled out soon, and it is intended to formalize the nascent sector.
One company is seeking to make a name for itself by digging in the nation’s east. During a trip to the region last year, the company’s chief executive visited a gold mining project in Abu Jubeiha. He toured the facility and saw employees working around the clock. He vowed to invest millions of dollars in the operation.
Sudanese Mines
While it is important for the South Sudanese government to support its nascent mining industry, it must ensure that mining companies are licensed in an ethical and transparent manner. The ministry should hire an external party to retroactively audit all mining companies currently operating in South Sudan. It should also investigate the beneficial owners of these companies and determine whether politically exposed persons have unfairly profited from their activities, such as by siphoning off illicit funds from the country’s extractives industry.
The South Sudanese Mining Industry
It is crucial to ensure that all mining activities are conducted in a manner that protects the environment and the people living nearby. This will help to ensure the continued existence of a thriving mining sector in the future and to avoid any environmental damage caused by the exploitation of natural resources.
Mines in Sudan
There are 34 mining companies registered in South Sudan. Some of them are foreign entities, such as the Australian company Epic and a Turkish one called Natura. Others are national companies, such as the Sudanese company Al-Cardinal.
In addition to its role as a source of livelihood for local residents, the South Sudanese mining industry is a key contributor to the country’s economic growth. It has helped to attract international investors, including China, which has invested in the country’s mining industry.
Sudan’s mining industry
While South Sudan’s minerals are an essential source of revenue for the country, it is crucial to ensure that mining companies are licensed in an ethical manner. The ministry should hire an external party, such as the UK’s National Crime Agency (NCA), to conduct a retroactive audit of all mining companies currently operating in South Sudan. This should include determining the ownership of these companies and their benefits to President Salva Kiir’s regime.
It is also necessary to bolster the financial integrity of the extractives industry in South Sudan by issuing a public anti-money laundering advisory to banks and other financial institutions. This will serve as a warning to banks about the risk of laundering money from corruption in the country’s extractives industry, and assist these financial institutions in updating their customer due diligence and ongoing monitoring frameworks.