Problems With Copper Mining in Sudan
Problems With Copper Mining
The gold mining industry has become an important part of the Sudanese economy. During the mining boom, tens of thousands of miners and prospectors were recruited. However, the industry continued to be plagued by environmental issues. These include pollution from metalliferous spoil tips. Some areas have been affected by respiratory illnesses.
The mining sector is now being reorganized by the Khartoum regime to generate additional revenues for the Central Bank. The new system has been designed to create a single vendor for the international market. It also seeks to eliminate artisanal mining. Despite this, the industry remains essential for the regime.
The process of mining assumes that investors can forge connections with local players and develop effective communication channels. But this is not always the case. Some national companies collapsed and others went bankrupt. The government has tried to attract more foreign investment in the industry by giving incentives. These can include exemptions from annual rental costs or a concession size.
The influx of miners, however, led to social and environmental upheavals. The area was dominated by nomadic people who lived in tents, and the landscape was altered. During the era of the Roman Empire, Wadi Faynan was the biggest copper mine in the world. During antiquity, Cyprus was one of the leading copper producers.
Problems With Copper Mining in Sudan
The mining industry has been severely affected by pollution. It is estimated that 4% to 7% of global emissions are attributed to the mining community. The industry has set a goal of decarbonization by 2050. It needs to drive efficiency in order to meet the growing demand for clean energy. But this will be difficult to achieve given the current operational constraints. To address these, the mining community has set a net zero goal for CO2 emissions by the year 2050. The industry has also been urged to reduce its direct CO2 emissions to zero.
Why to Invest in Copper Mining
In addition to its role as a provider of income, the mining sector in Sudan is also a source of social and political conflicts. The illicit financial sector is not adequately regulated. It is not accounted for in the national accounts. There are regular arrests of black market traders and their imprisonment. The national security forces act outside of legal procedure. Several foreign companies left the country as a result of this.
The government wants to control the income-generating activities in the country. This has led to a number of strategies. These include the reorganization of the gold trade sector and the encouragement of industrial production. It has also imposed more austerity plans to restore the balance of payments. The Government is also fostering the export of agricultural products.
The regime has also been criticized for its monopolistic approach to the gold market. In January 2004, the Agreement on Wealth Sharing was signed to end the war with rebels in South Sudan. The government is seeking to restructure the gold trade sector in order to make it more competitive. The gold traders are members of a federation of unions of gold traders. This federation has remained critical of the government’s monopolistic policy.