Gold Mine Make Money

The question: How does a gold mine make money? may seem to be a very simple one. Traditional miners use simple metal detectors to locate gold deposits. Once they identify an area, they dig and collect rocks. After collecting enough rock, they transport them to a mill near their mining site. The mill then grinds the rocks and treats them with mercury or cyanide. Afterward, they sell the stones to intermediaries.

Today, more than 400 foreign and national companies are active in gold exploration. A Canadian-French company, Ariab Mining, was founded in 1991 and later transferred to the Sudanese government. Gold exploration companies account for around twenty per cent of the world’s gold production, while traditional miners produce the vast majority. As the price of gold rises, more small miners are chasing the high returns of the precious metal.

exploration companies Sudan

While the US government and the industry are both trying to gain control of gold mining in Sudan, these mining companies are largely ignoring the political ramifications of their activities. However, a US-based activist group is attempting to force mining companies to acknowledge political risks of their investment. Its role is in the ongoing conflict around the Hassai gold mine in Sudan. The LMA has made numerous attempts to influence companies, including La Mancha, to acknowledge their political responsibilities.

How Does a Gold Mine Make Money?

During the Sudanese civil war, armed groups began mining in the country. In December 2017, the Rapid Support Forces seized the Jebel Amir mines in Darfur and South Kordofan. In March 2018, protesters in the village of Bauqah, north Sudan, were shot by guards of a Russian mining company. The violence has left many civilians dead and injured.

Sudanese exploration companies

The Sudanese government also attempted to increase the presence of industrial mining. It granted 127 mining concessions in 2014, but only 10 were put into production. This has made gold trade a central part of Sudan’s power politics. It is also the source of gold for armed groups in the DRC. They use the money from the trade in minerals to fund their own wars. However, this has caused controversy in the Sudanese mining industry.

mining and exploration companies in Sudan

One of the challenges of the Sudanese government is keeping the industry secret. Gold prices fluctuate, and the government’s efforts to control the industry have been ineffective. However, the government is now taking steps to combat corruption, and the nation is finally getting some control over the industry. This gives investors the opportunity to differentiate their products by their gold origin. But the challenge is the lack of regulation and transparency.