War losses in Sudan mining sector hit US$7bn

Sudan’s mining sector has suffered losses estimated at US$7 billion as a result of the country’s 34-month conflict, a senior minerals official said on Saturday, underscoring the heavy toll of the war on one of the nation’s most important revenue sources.

Ahmed Haroun al-Tom, Director of the General Authority for Geological Research, said the prolonged fighting had severely disrupted operations, damaged infrastructure and curtailed exploration activities across much of the country.

“The losses of the mining sector in Sudan due to the war amounted to about US$7 billion,” he said in a statement.

Since fighting erupted, Sudan’s public and private sectors have faced widespread looting and sabotage, leading to the total or partial destruction of facilities and infrastructure in multiple industries.

Al-Tom said the authority’s operational footprint had shrunk dramatically, from 18 states before the outbreak of the war to just six states currently.

The contraction has directly affected geological research, mineral exploration and government revenues derived from the sector, he said.

Mining – particularly gold – is a cornerstone of Sudan’s economy and a key source of foreign currency. The disruption has compounded broader economic strains caused by the conflict, including inflation, currency depreciation and declining public revenues.

Al-Tom said the authority had resumed operations in the capital, Khartoum, after previously relocating to Port Sudan in the east when violence intensified.

Several state institutions that had temporarily moved to Port Sudan, including the Sovereign Council and the Council of Ministers, have also returned to Khartoum to resume activities.

Before the war, the geological authority possessed what al-Tom described as “above-average” research and exploration technologies. However, much of that equipment was lost or rendered unusable due to the conflict.

To rebuild capacity, the authority has begun importing modern technologies and advanced machinery to enhance its technical capabilities.

The new equipment package includes geophysical devices, remote sensing technologies and Geographic Information Systems, as well as specialised tools for geo-engineering and geophysical studies, he said.

According to al-Tom, the impact of the war has gone beyond the immediate decline in field activity.

Evaluation and exploration programmes have been disrupted, slowing the identification of new mineral deposits and discouraging investment in the sector. This has negatively affected revenue flows linked to mining activities, he added.

Sudan ranks third in Africa and thirteenth globally in terms of the diversity and volume of its mineral wealth, according to official data.

The General Authority for Geological Research estimates that about seventy-five percent of the country’s mineral resources still require detailed exploration and evaluation, highlighting the sector’s untapped potential.

Despite the conflict, there have been signs of resilience in parts of the industry. In December last year, the Sudanese Mineral Resources Company, the regulatory arm of the Ministry of Minerals, announced that gold production had surged to 70 tonnes, the highest output recorded in the previous five years.

Analysts say that while gold production can continue in some areas despite instability, sustained growth will depend on restoring security, rebuilding infrastructure and attracting fresh investment.

The estimated US$7 billion in losses illustrates the scale of the economic damage inflicted by nearly three years of fighting.

As authorities seek to restore state institutions and revive economic activity, the mining sector is expected to play a central role in efforts to stabilise public finances and rebuild the war-battered economy.

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