The European Union Imposes Restrictions on Sudanese Gold Trade

SadaNews - The European Union announced on Monday that it has imposed new sanctions on Sudan targeting its gold trade, which it claims is being exploited to finance the ongoing military conflict in the country.

The European Council stated in a statement that "the decision imposes a ban on the purchase, import, or transfer of gold originating from Sudan. It also prohibits the sale, supply, transfer, or export of mercury and cyanide to Sudan."

Since the outbreak of the war in Sudan in mid-April 2023 between the Sudanese army and the Rapid Support Forces, the war effort for both sides has largely been financed by the gold industry, according to various reports. This war has caused a widespread humanitarian crisis.

The artisanal mining sector employs more than two million people who work and produce about 80% of the total gold extracted in this country, which relies on the yellow metal as a major source of foreign currency after losing three-quarters of its oil revenues due to the separation of South Sudan in July 2011.

In April, Sudan's Minister of Minerals, Noor al-Da’im Taha, revealed to Al Jazeera Net arrangements and plans to reduce gold smuggling through electronic monitoring, a joint force from military and security agencies, and policies providing encouraging incentives for exporters.

According to the Minister of Minerals, Sudan ranks first in the Arab world and third in Africa in gold production.

The Mineral Resources Company, the "regulatory arm" of the Ministry of Minerals, previously announced that last year's gold production reached 70 tons, while data from the Central Bank of Sudan showed that only 14.5 tons were exported through official channels.

Source: Al Jazeera + Agencies