Sudan Signs Nine Concession Deals for Gold, Copper Mining

Sudan is Africa's third-largest producer of gold. (AFP)
Sudan is Africa's third-largest producer of gold. (AFP)
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Sudan Signs Nine Concession Deals for Gold, Copper Mining

Sudan is Africa's third-largest producer of gold. (AFP)
Sudan is Africa's third-largest producer of gold. (AFP)

Sudan on Thursday signed nine concession agreements for gold and copper mining with eight local and foreign companies, the state news agency SUNA said.

All the agreements are related to gold mining except one for copper, the agency quoted Minister of Minerals Mohamed Bashir Abdalla as saying.

Three companies from Iraq, China, South Africa won four gold mining concessions, and a fourth one from Armenia won the single copper concession, the report said. Four local companies took four gold concessions.

All concession areas are located in the Red Sea State, the West Kordofan state and the Northern State.

Although there are no official figures, annual gold production in Sudan is estimated at tons. However, Sudan has been complaining of widespread gold smuggling.

Last week, Finance Minister Jibril Ibrahim acknowledged that the government was helpless in stopping the gold smuggling.

He further noted that certain procedures were taken to limit the illicit activity and to benefit from gold revenues.

Sudan sold 13,327,657 grams of gold worth $437,983,965 from 2015 to 2020, Abdalla said on Thursday, compared with 2,752,889 grams worth $140,805,290 from June 2020 to February 2021.

Gold sales from March to May reached $36,295,970, the minister said during the concession agreements ceremony.

He pledged to encourage modern mining and investment, saying that gold production is the top economic activity and would bring in foreign currency to the country.

He further pledged to simplify the investment procedures, to support gold manufacturing, to amend relevant legislations and tackle other steps that would encourage investment and investors.

For his part, Ibrahim called for expanding the production of minerals and related industries and attracting more investment companies in this field.



Gold Poised for Biggest Weekly Fall in over Five Months on Dollar Strength

FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
TT

Gold Poised for Biggest Weekly Fall in over Five Months on Dollar Strength

FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo
FILE PHOTO: Gold bullions are displayed at GoldSilver Central's office in Singapore June 19, 2017. REUTERS/Edgar Su/File Photo

Gold prices dropped on Friday, poised for their steepest weekly decline in over five months, pressured by a stronger dollar and as markets absorbed the implications of Donald Trump's victory and its potential impact on US interest rate expectations.

Spot gold fell 0.6% to $2,690.62 per ounce as of 9:50 a.m. ET (1450 GMT), and was down 1.6% for the week.

US gold futures shed 0.3% to $2,697.90.

The dollar index gained 0.3%, on track for a weekly gain, Reuters reported

"In the last month, the story has been the uncertainty risk of the election and if there was going to be normalisation of transition, but this election appeared to be very decisive on the White House," said Alex Ebkarian, chief operating officer at Allegiance Gold.

"A lot of risk-on assets started benefiting in terms of the potential future implication of policies, so we had money go out of metals into these alternatives."

The Federal Reserve on Thursday cut interest rates by 25 basis points, but indicated a cautious approach to further cuts.

Trump's victory has fuelled questions about whether the Fed may proceed to cut rates at a slower and smaller pace, given the former president's tariff policy.

However, Fed Chair Jerome Powell said the election results would have no "near-term" impact on monetary policy.

The prospect of rate cuts, starting with the half basis point reduction in September, has underpinned gold's record rally this year.

Although bullion is reputed as a hedge against inflation, higher interest rates reduce non-yielding gold's appeal.

"Should markets restore the odds for a pre-Christmas Fed rate cut...that should help keep spot gold above the psychological $2700 level," Exinity Group Chief Market Analyst Han Tan said.

On the physical front, gold demand in India faltered, while Japan and Singapore saw some buying.

Spot silver fell 1.3% to $31.58 per ounce, platinum fell 1.8% to $979.15, palladium shed 2.3% to $1,001.25. All three metals were heading for weekly declines.