Sudan Mining Industry: Smuggling Forces 87% of Firms Out of Production
Only 13 mining companies remain active in Sudan as gold smuggling and illegal operations derail investment, reduce revenues, and deepen wartime economic crisis.
Sudan’s formal gold mining industry has virtually collapsed, with only 13 out of more than 100 registered companies still producing, according to internal government data seen by the Sudanese Mineral Resources Company (SMRC).
Mohamed Tahir Mohamed, Director-General of SMRC, said a preliminary review of joint ventures revealed an “unprecedented decline” in legitimate operations as firms shut down or shifted to informal production networks.
“The number of companies actually producing gold in Sudan does not exceed thirteen,” Tahir said during the Sudan Exports Forum in Port Sudan.
Sudan has ranked for years among Africa’s top gold producers, but the sector has long been plagued by corruption, opaque military-linked exporting networks, and cross-border smuggling.
Reuters previously reported that up to 80% of Sudan’s gold is smuggled out of the country, citing an April 2023 investigation into illicit supply chains.
Illegal factories and environmental violations
Tahir said the sector has been flooded with operators creating unlicensed processing plants and mining projects without meeting legal or environmental requirements, particularly in wartime areas where state control has weakened.
“Parties entered the sector in an unregulated manner. Factories and mining projects were established without compliance with environmental or legal controls,” he said.
Environmental activists and regional officials have publicly criticised mercury and cyanide use in makeshift plants in Red Sea state, Nile state, and other Northern states — concerns documented in Bloomberg’s 2024 reporting on toxic mining waste and community protests.
Revenue losses as war pushes capital into unregulated mining
Gold has become the de facto financial pillar for both warring sides in Sudan’s ongoing conflict.
The SMRC confirmed that capital previously invested in agriculture, construction and services has moved into gold extraction because it offers fast returns and requires minimal regulatory oversight.
Despite war and state fragmentation, Tahir argued that some mining states remain secure and therefore continue to attract domestic investors.
“The states hosting the major mining activity are among the safest,” he said, noting that 80% of Sudan’s landmass contains mineral deposits.
Target: 80 tonnes — but smuggling threatens revenue
In a previous televised interview, Tahir said Sudan aims to produce 80 tonnes of gold in 2025, generating US$3 billion in revenue, up from 64 tonnes in 2024.
But gold smuggling remains the biggest threat:
“We have put policies in place that will reduce smuggling. We will close the gap between the producer and the exporter through official channels,” he said.
The state cannot reach its revenue targets without stopping illicit exports.
A 2023 report from the Central Bank of Sudan estimated that the treasury loses over US$1.2 billion annually due to smuggling — nearly half of Sudan’s total foreign exchange earnings.
Reporting by Awad Mustafa