Ever since gold producer Al-Sabika Al- Zabahiya was taken out of the hands of the Sudanese intelligence services and placed under the minister of finance's control in April (Africa Intelligence, 06/05/20), the Khartoum government has been busy making sweeping changes to the way the country's mining industry is run. On 5 May, Prime Minister Abdalla Hamdok confirmed the government's desire to create a gold stock market in the country on the same day the state-run Sudanese Mineral Resources Co (SMRC) made an announcement that was less-publicised but could take more immediate effect. SMRC has asked artisanal and small-scale miners (ASM) to hand over the state's 10% cut of their gold production in kind rather than in cash. The measure, which was introduced in the disputed South Darfur region on 26 April then extended to Sudan's other subdivisions, could be applied relatively quickly while the stock market needs a more robust banking network and new infrastructure before it can get off the ground. It will allow the state to sell gold at its own price and not have to wait on the remainder that mining firms agree to pay after selling the gold themselves. The move should work to the state's advantage as global gold prices have shot up since the start of the Covid-19 crisis, reaching as much as $1,700/oz.
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