Sudan's Ministry of Minerals in the army-backed government signed an agreement with a Saudi company to allow it to conduct gold exploration along the Red Sea coast, amid the continuing war in the country.
The agreement will also involve geological evaluation and mining development, the ministry said on Monday.
“The Ministry of Minerals signed a strategic agreement with the Saudi Gold Refinery company to carry out research, exploration, geological evaluation and mine development work for gold and associated minerals in the Red Sea State,” the ministry said.
The agreement aims to expand “the horizons of investment co-operation between Sudan and the Kingdom of Saudi Arabia in a way that serves the common interests of the two countries”, it added.
The agreement was reached a month after a high-level Sudanese delegation, led by Minister of Minerals Nour Al Daem Taha, participated in the International Mining Conference, held in Riyadh last month.
“The entry of the SGR to invest in the mining sector in Sudan represents a positive indicator of the improvement in the investment environment and the attractiveness of the sector,” the ministry said.
Saudi Gold Refinery is one of three gold producers operating in Saudi Arabia.
Sudan has been gripped by war since April 2023, when tension between the army and the Rapid Support Forces exploded into open conflict, devastating large parts of the country, displacing millions and leading to one of the world’s worst humanitarian crises.
The country relies primarily on gold exports to obtain foreign currency. But since the country has been engulfed in war, there are fears that the earnings could be diverted to finance the conflict.
According to official figures, the country’s gold production reached 70 tonnes last year. The North African nation exported about 10.9 tonnes of that gold, worth $1.05 billion, in the first nine months of last year.
