(JUBA) – The Ministry of Mining has warned that illegal mining is placing South Sudan’s economy at risk by draining government revenues and allowing unregulated extraction of valuable minerals.
Dr Matiok Santino Akuei, the Undersecretary in the Ministry of Mining, made the remarks during a field visit to sites outside Juba on Thursday. He said the government has already started revoking licences of companies that are violating the law:
“We are losing revenue through this practice. We have decided to revoke some licences, and we are now in the field to identify and ensure that these companies comply with the law.”
The Undersecretary cited the case of Mass L.C.D. Company, which he accused of operating in an area that had already been allocated to another licensed operator. He reminded investors that working without proper compliance is an offence under the Mining Act of 2012.
Dr Akuei also stressed the need to formalise artisanal mining, a practice widely used by local communities. He called for small-scale miners to be registered, trained, and equipped with the right skills so they can contribute to national revenue.
“Formalising artisanal mining will help communities earn properly and also ensure the government collects revenue in a fair way,” he added.
South Sudan is rich in mineral deposits, including gold, copper, zinc, lead, manganese, uranium, iron, marble, dolomite, rare earths and diamonds. But much of the gold trade remains informal. Reports suggest that unregistered companies, some linked to influential individuals, are involved in illegal extraction and smuggling, depriving the country of much needed income.
The Ministry is urging exploration companies and local miners to comply with the Mining Act and the Mineral Title Regulatory Framework. Officials say failure to regulate the sector could deepen losses at a time when South Sudan needs to diversify its economy beyond oil.
With the current exchange rate at 7,100 South Sudanese Pounds (SSP) to 1 US Dollar, even small amounts of unrecorded gold exports translate into huge losses for the national treasury. For example, one kilogram of gold, valued at around 74 million SSP (10,400 USD), when smuggled, means a direct loss to government coffers.
Illegal Mining and South Sudan’s Economy
| Key Point | Details |
|---|---|
| Location | Juba County, South Sudan |
| Main Issue | Illegal mining draining government revenue and weakening the economy |
| Official Statement | Dr Matiok Santino Akuei, Mining Undersecretary, warned of major losses and announced licence revocations |
| Action Taken | Revoking licences of non compliant companies, including Mass L.C.D. Company |
| Legal Framework | Mining Act of 2012 and Mineral Title Regulatory Framework |
| Artisanal Mining | Government pushing for registration and training of local small-scale miners |
| Mineral Wealth | Gold, copper, zinc, lead, manganese, uranium, iron, marble, dolomite, rare earths, diamonds |
| Estimated Output | 30 – 40 tons of gold per year, much of it informally mined |
| Economic Risk | Potential loss of hundreds of millions of US Dollars annually |