War-torn Sudan sees gold mining boom amid prolonged conflict

Thu Jan 01 2026

Despite being engulfed in one of the most devastating conflicts in its modern history, Sudan has recorded a remarkable surge in gold production, underscoring the paradoxical relationship between war, natural resources, and state survival. According to figures released by the Sudanese Mineral Resources Company (SMRC), the country produced 70 tonnes of gold in 2025, surpassing its annual production target by a significant margin and marking the highest output level in the past five years.

The announcement, published on the SMRC’s official Facebook page on December 30, stated that gold production reached 113% of the planned target for the year. The figures were presented during a board meeting chaired by Sudan’s Minister of Minerals, Nour El-Daem Taha, who praised the company’s performance despite what he described as “ongoing challenges” stemming from the civil war. He urged the company to intensify its efforts in 2026 and emphasized the need to integrate national mining development projects into future plans.

These results are striking given that Sudan has been locked in a brutal civil conflict for more than two years, a war that has fractured state institutions, displaced millions, and severely disrupted agriculture, trade, and basic public services. Yet, amid this devastation, the gold sector has not only survived but expanded, emerging as one of the government’s most reliable sources of revenue.

The SMRC reported that total public revenues reached 1.087 trillion Sudanese pounds in 2025, equivalent to roughly $426 million, representing 132% of the annual target. From January to October alone, Sudan produced 53 tonnes of gold, which were exported for an estimated $909 million.

Gold has long been Sudan’s most valuable export, but its importance has grown dramatically since the collapse of oil revenues following South Sudan’s secession in 2011. In the context of war, sanctions, and economic isolation, gold now plays a central role in sustaining the state’s finances.

SMRC Director Mohamed Taher Omer was explicit about this reality, stating that the minerals sector “has a major role in supporting the state treasury and the national economy, as well as the war effort.” His comments highlight the uncomfortable truth that resource extraction has become intertwined with Sudan’s military and political survival strategy.

The resilience of Sudan’s gold sector can be attributed to several factors. Artisanal and small-scale mining, which accounts for the majority of production, is highly decentralized and often operates beyond the reach of formal state oversight. This makes it less vulnerable to the collapse of centralized governance and infrastructure.

At the same time, armed groups, local militias, and powerful economic actors have strong incentives to keep mining operations running. In many regions, gold mining has become one of the few viable economic activities, providing livelihoods for thousands of Sudanese even as other sectors collapse.

However, this resilience comes at a cost. The lack of regulation, combined with the pressures of war, has led to widespread environmental damage, unsafe labor conditions, and the exploitation of local communities. Mercury contamination, child labor, and deadly mine collapses remain persistent problems.

While the government’s figures paint a picture of success, they only tell part of the story. According to the Swiss development agency SWISSAID, official gold exports in 2024 amounted to 22.9–31 tonnes, generating approximately $1.57–1.59 billion in revenue. Yet SWISSAID estimates that between 40% and 70% of Sudan’s gold production is exported through unofficial channels, bypassing formal reporting systems altogether.

This massive shadow economy deprives the state of billions of dollars in potential revenue while enriching smugglers, warlords, and foreign intermediaries. It also undermines transparency and fuels corruption, further weakening already fragile institutions.

Multiple sources indicate that the United Arab Emirates, particularly Dubai, serves as the primary hub for both official and unofficial Sudanese gold shipments. The UAE’s gold markets, long criticized for lax oversight and weak enforcement of sourcing standards, provide an ideal entry point for conflict-linked gold into global supply chains.

Sudan’s gold boom has significant geopolitical implications. As Western aid has dwindled and international engagement has become more cautious, gold revenues offer Sudanese power centers an alternative source of financial autonomy. This reduces leverage for international actors seeking to influence the country’s political trajectory or push for peace negotiations.

At the same time, the reliance on gold exports ties Sudan more closely to regional trading hubs and non-Western partners, reinforcing shifts in economic orientation already underway before the war. For neighboring states and global markets, Sudanese gold represents both an opportunity and a risk, particularly given concerns about conflict financing and money laundering.

While officials celebrate record production and rising revenues, the long-term sustainability of Sudan’s gold boom remains deeply uncertain. War-driven extraction may deliver short-term gains, but it risks entrenching predatory economic structures that will be difficult to dismantle in a post-conflict setting.

Without meaningful reforms, greater transparency, and stronger oversight, gold is more likely to prolong Sudan’s crisis than resolve it. The sector’s current success masks deeper structural problems: a fractured state, widespread smuggling, environmental degradation, and the diversion of wealth toward armed actors rather than public welfare.

Sudan’s experience illustrates a familiar pattern seen in many conflict-affected states: natural resources can sustain economies under extreme pressure, but they can also entrench violence and delay peace. As long as the war continues, Sudan’s gold boom will remain both a lifeline and a liability-fueling the state’s finances while casting a long shadow over the country’s future stability.

Source: https://weeklyblitz.net/