By William Garang
On Friday, the Council of Ministers approved the Mining Act, 2012 Amendment Bill 2024, aiming to strengthen the government’s control over the mining sector. The decision followed a presentation by Justice Ruben Madol Arol, the Minister of Justice and Constitutional Affairs, who submitted the bill for cabinet review and approval.
The Deputy Minister of Information, Jacob Maiju Korok, told journalists that the bill is intended to align with the 2018 peace agreement and facilitate the creation of key administrative and management authorities for the mining industry.
“The purpose is to amend a Mining Act, 2012 to confirm the Act with the revitalized agreement constitution and its practice,” Korok said.
“Also to provide development of the national mineral resources and establishing the South Sudan Geological survey agency and the mining cooperation and the mining authority,” he added.
Mr. Korok, who is also the acting government spokesperson, stated that the memo was meticulously deliberated and “deliberated thoroughly by the council of Ministries and passed.”
Meanwhile, the minister of Mining, Martin Gama Abucha also tabled a memo on endorsement of high-level committee on establishment of Gold, refinery and mineral trading centers in South Sudan.
“The main aim of establishing these trading centers is to ensure that Artisanal and small-scale miners benefit from minerals, curbing smuggling of golds and other minerals across the borders,” Korok explained.
Government spokesman highlighted that Minister Abucha requested the cabinet to approve the establishment of the steering committee and technical team.
Mining Activity. (Photo Credit supplied)
In response, the cabinet nod at a memo and urged minister of finance to release previously approved $72 million for formation of mineral trading centers.
According to an investigation by the Enough Project Team titled “The Criminalization of South Sudan’s Gold Sector. Kleptocratic Networks and the Gold Trade in Kapoeta,” the illegal gold business is predominantly controlled by Somali, Ugandan, Kenyan, and some Chinese nationals.
Foreign nationals are reportedly purchasing gold from artisanal miners in South Sudan and smuggling it out of the country through porous borders with Uganda and Kenya. Meanwhile, some government and security officials are said to be using the Kapoeta airfield to transport gold to Juba, from where it is rerouted to destinations like the United Arab Emirates and Asian countries via Juba International Airport.
These smuggling operations generate substantial profits, fueling bribery of customs officials and security personnel at both the airport and border crossings. This illicit trade results in significant revenue loss for the government. In 2019, South Sudan exported $19.4 million worth of gold, mostly to the UAE, according to the Observatory of Economic Complexity.
However, this figure contradicts data from South Sudan’s Ministry of Mining, which highlights the presence of unlicensed mining companies in Kapoeta, reportedly authorized by local officials despite the Ministry being the sole authority for issuing mining certificates. The UN Group of Experts suggests this reveals a conflict of interest, where certain individuals or state authorities may be profiting from foreign companies operating outside official regulations.