Sudan is a treasure trove of untapped resources – vast reserves of gold, iron ore and other precious minerals. However, the country’s ongoing civil war and profound political instability suffocate its economic potential and keep foreign investment out of reach.

It is Africa's third-largest country by geography, with an area of 1,886,068 sq km, more than three times the size of France. However, only 10% of the land has been surveyed for mineral resources.

Its vast mineral wealth stems from its complex geology, shaped by the Arabian-Nubian Shield, the Nubian Sandstone formations and extensive volcanic and rift structures. This geological diversity has endowed the country with significant deposits of gold, iron ore, chromite, manganese, copper and a range of other industrial minerals, many of which remain underexplored due to decades of instability and underinvestment.

Gold dominates Sudan's mining sector, ranking as Africa's third-largest producer. According to government data, official gold production in 2022 reached 41.8 tonnes. However, estimates that include artisanal and small-scale mining suggest total production could exceed 100 tonnes annually, making it one of Africa's top gold producers. The Hassai mine, northeast of Khartoum, has been the most productive, yielding over 2.3mn ounces of gold since its discovery.

Other major gold-bearing regions include the quartz-vein formations of North Kordofan, the Parentheses Gossan belt in the Nuba Mountains and alluvial deposits along the Nile River and its tributaries. Sudan's government has been pushing to formalise its artisanal gold sector, which involves 1 to 1.5mn miners, to curb smuggling and increase state revenues.

Sudan’s iron ore reserves are estimated at around 2bn tonnes, with significant deposits in Wadi Halfa and the Red Sea Hills. High-grade deposits exist in the Baljrawih area. These resources have attracted interest from foreign investors, although the limited infrastructure and ongoing political instability have hindered large-scale development.

Chromite reserves, estimated at 1mn tonnes, are concentrated in the Ingessana Hills in Blue Nile State. Chromite mining has been active since the 1970s, primarily for export, with significant production in the Red Sea Hills and Nuba Mountains. The country has known manganese occurrences, particularly in the Albeodh Desert and around Khartoum. 

It hosts copper, lead and zinc deposits in the Red Sea Hills. The Al-Qutb Mine in eastern Sudan is estimated to contain around 5mn tonnes of copper, potentially making it one of the world's largest copper reserves. Lead is found in North and South Darfur and North Kordofan. Copper deposits have been identified in the Hofrat En Nahas region in South Darfur, although exploration efforts have been limited.

The country’s industrial mineral sector also holds considerable potential. Sudan’s gypsum reserves are among the largest in Africa, with an estimated 220mn tonnes located along the Red Sea coast. The Sagom Mountain area alone contains at least 34mn tonnes. Phosphate reserves in the Mount Kuoun and Mount Lauro regions of eastern Nuba are estimated at around 400,000 tonnes, while mica deposits west of Shareek are believed to contain 14.7mn tonnes. Meanwhile, tungsten deposits in the Mount Ayub Ali area also exist.

Uranium and rare earth elements have been reported in regions such as Darfur, South and West Kordofan, and the Red Sea. However, exploration data remains limited, and the government has yet to develop a clear strategy for extracting these strategic minerals.

Sudan's mineral wealth remains largely untapped, with most extraction occurring at an artisanal or semi-industrial level. 

The lack of modern infrastructure, political instability and weak regulatory frameworks have deterred investment. However, the potential is undeniable: with proven reserves across multiple commodities and a government eager to attract foreign capital, Sudan could emerge as a major player in the global mining industry.

Gold extraction dominates its mining industry, with several key operations shaping the landscape. The Hassai Gold Mine, located 50 kilometres northeast of Khartoum, has been a central part of the country's gold production since its inception in 1992. 

Originally a joint venture between the Sudanese government and La Mancha Resources, a subsidiary of the Egyptian Sawiris family's investment group, the mine produced significant quantities of gold for many years. However, in recent times, production has declined due to diminishing ore grades, with reports indicating a drop to less than 2 tonnes per year (tpy) by 2019. 

In north Sudan, the Jebel Amer region in North Darfur has become a central gold-producing area. The situation took a significant turn in 2017 when the Rapid Support Forces (RSF), a Sudanese paramilitary group led by Mohamed Hamdan Dagalo, known as Hemedti, seized control of the Jebel Amer gold mines. 

This move allowed the RSF to establish a substantial revenue stream from the mines, which was key to funding their operations. The RSF's involvement in gold mining has sparked controversy, with reports emphasising the complex relationship between armed groups and mineral resources in Sudan.

The Meyas Sand Gold Project in northern Sudan represents a newer phase in the country's mining development. Perseus Mining, an Australian-based company, holds a 70% interest in the project, with the Sudanese government owning 20% and the local company Meyas Nub holding the remaining 10%. Although the project is still in its development stage, it has the potential to contribute significantly to gold production in the near future.

Sudan's mining industry has been severely disrupted by the ongoing civil war, which erupted in April 2023 following escalating tensions between the Sudanese Armed Forces (SAF), led by General Abdel Fattah al-Burhan, and the RSF.
 
The conflict has led to widespread devastation, with more than 150,000 civilians reported dead and over 10mn displaced. Both factions have been accused of committing war crimes, including ethnic cleansing, torture and sexual violence, further exacerbating the humanitarian crisis.

The RSF has seized control of several resource-rich regions, including parts of Darfur, Kordofan and the Blue Nile, known for their valuable gold mines. These mines have become a crucial funding source for the RSF's operations, with the group exploiting the mineral wealth to fuel the conflict. 

Meanwhile, the international dimension of the war has further complicated the situation. The United Arab Emirates has been accused of supplying weapons to the RSF, though it denies the claim. In addition, the Russian paramilitary group Wagner has secured lucrative gold mining concessions in Sudan, through offering political and military support to the RSF.

Despite the UN's efforts to broker a ceasefire and ensure adherence to international humanitarian law, both sides have continued their hostilities, with little progress towards a peaceful resolution. The lack of political will among the combatants, combined with the complex web of international interests, makes the prospect of an immediate end to the war unlikely.

As of January 2025, Sudan's Transitional Sovereignty Council is still led by General Abdel Fattah al-Burhan, with Malik Agar as Deputy Chairman. Osman Hussein continues as acting Prime Minister.

Moreover, South Sudan formally seceded from Sudan on July 9, 2011, following a 2011 referendum in which 98.83% of voters opted for independence. This decision was driven by decades of civil war, ethnic tensions, disputes over oil revenue and the Sudanese government's long-standing political exclusion and neglect of South Sudan.

Sudan's nominal GDP increased significantly in 2023, reaching $109.33bn, up from $51.67bn in 2022. This rise is mainly due to higher oil prices and the devaluation of the Sudanese pound, which increased the nominal value of the economy. However, real GDP contracted by 20.1% in 2023, following a 12% decline in 2022. The destruction of productive capacity has driven the economic downturn, reduced private consumption and lowered investment.

Inflation has been extremely high, averaging 211.48% in October 2024, a slight decrease from previous months but still reflecting severe economic strain. This persistent inflation is driven by the ongoing conflict, which has disrupted economic activities, caused shortages of goods and services and destroyed infrastructure. 

Additionally, the devaluation of the Sudanese pound has significantly increased the cost of imports, further intensifying inflation. The Sudanese pound's value has dropped dramatically, from 561 Sudanese pounds per US dollar at the end of 2022 to 2,260 Sudanese pounds per US dollar by mid-2024. As of January 2025, the black market exchange rate has improved slightly to around 1,500 Sudanese pounds per US dollar, but it remains severely depreciated compared to previous years.

Looking ahead to 2025, the economic outlook remains highly uncertain. Sudan’s economic losses due to the ongoing conflict are estimated between $9bn and $15bn, though the true cost – including destroyed infrastructure, lost productivity, and capital flight – could be significantly higher. The destruction of infrastructure, including Sudan's largest oil refinery, has compounded the situation. 

As of 2025, Sudan's population is estimated to be around 47.5mn. Despite ongoing challenges, the population continues to grow, driven by high birth rates. The country is young, with a median age of about 20 years, and its population is diverse, spread across urban centres like Khartoum, the capital and largest city, and rural areas.

Khartoum has an estimated metropolitan population of around 6.3mn. Located at the confluence of the Blue and White Nile rivers, it is a central hub for the country's political, economic and cultural activities and holds significant strategic and historical importance.

Sudan's mining industry, particularly gold extraction, has long been a key pillar of the economy. In recent years, gold production alone has accounted for around 4% of GDP.

However, the outbreak of conflict in April 2023 severely disrupted mining activities, leading to a sharp decline in gold production. Between April 15 and the end of August 2023, corporate gold production in Sudan totalled only 2 tonnes, according to the assistant director of the Mineral Resources Company. This figure does not include artisanal and small-scale mining output, which traditionally accounts for a substantial share of the country's gold production. Estimates of the gold output in 2024 varied. Some reports projected about 64 tonnes for the year, while others suggested 62.5 tonnes.

Despite these challenges, Sudan's gold export revenues remained significant. In 2022, its gold exports were valued at over $2bn, accounting for more than 50% of the country's total exports. From January to October 2024, reported gold export revenues were $1.5bn, though smuggling and informal mining likely meant actual revenues were significantly higher.

The mining sector is governed by the Mineral Wealth and Mining (Development) Act 2015, which replaced the 2007 Act. This legislation establishes the framework for exploration and extraction, with the state retaining ownership of all mineral assets. The Ministry of Minerals oversees the sector, supported by the Geological Research Authority of Sudan (GRAS) and the Technical Committee for Mining.

The Act outlines various mining licences, including general prospecting, exclusive exploration, and mining contracts for large-scale and small-scale operations. However, weak enforcement, licensing and contract management inconsistencies create uncertainty, deterring foreign investment. Corruption and regulatory inefficiencies further complicate operations, limiting the sector's ability to attract long-term capital.

The tax framework for mining operates under the Investment Promotion Law of 1999, outlining incentives for exploration and extraction. Mining companies are subject to corporate income tax, royalties, and other levies, though tax rates can fluctuate based on ministerial discretion. Royalties on gold production typically range from 5% to 7%, while corporate tax rates can reach up to 30%. However, inconsistent application of tax policies and a lack of transparency in revenue collection discourage investment and create operational challenges.

Environmental impact assessments are legally required, but enforcement remains weak, contributing to unchecked environmental degradation, particularly in artisanal mining.

Dispute resolution is primarily handled by Sudanese courts, with limited provisions for international arbitration. This raises concerns for foreign investors wary of political and legal risks.

In addition to the civil war, the mining sector faces significant challenges, primarily due to poor infrastructure. The country's underdeveloped transportation and energy systems, especially in remote mining areas, increase operational costs and complicate logistics. Inadequate roads hinder mineral transport, while an unreliable power supply disrupts operations.

These issues deter potential investors who require efficient resource access. Minerals, particularly gold, are transported to Port Sudan for export, often by truck from mining areas. The port struggles with congestion and ageing infrastructure. Though plans for upgrades exist, slow progress continues to make infrastructure challenges a central issue for the sector.

Beyond infrastructure, the industry is also affected by regulatory inefficiencies. The 2015 Mineral Wealth and Mining (Development) Act enforcement is weak, leading to inconsistencies in licensing and contract management. This lack of regulatory strength fosters corruption and mismanagement, discouraging foreign investment.

Environmental concerns are another obstacle. Mining operations, especially gold extraction, often involve toxic chemicals like mercury and cyanide, which can harm the environment and local communities. Enforcement of environmental regulations is limited, resulting in resource degradation.

Additionally, security risks, particularly from local conflicts or militia groups, threaten the safety of mining operations and workers in certain regions. The lack of security in remote areas complicates establishing long-term mining projects.

Economic instability, including high inflation and currency devaluation, also poses a challenge. These factors make it difficult for companies to secure the capital needed for large-scale mining projects.

Finally, human rights concerns related to artisanal mining, such as poor working conditions and exploitation, add another layer of complexity to the sector. Limited government oversight in remote areas exacerbates these issues.

If Sudan’s civil war ends and stability is restored, the mining sector could experience a rapid transformation, offering substantial growth opportunities. It is rich in untapped mineral resources, and with proper investment the country could quickly become a major player in global mining.

Gold remains Sudan's most significant asset, with estimated reserves of 1,000 tonnes. The country has the potential to regain its position as Africa's third-largest gold producer and expand production far beyond pre-conflict levels. Foreign investment, modern extraction technologies and improved infrastructure could propel the nation to the top of the global gold market.

Beyond gold, copper, zinc and lead offer immediate opportunities. These minerals are essential for industrial manufacturing and the growing renewable energy sector, where demand is surging. Iron ore, chromium, tantalum and rare earth elements also represent key untapped resources that could drive growth in technology, electronics and energy storage.

Industrial minerals such as limestone and gypsum are also critical for construction and cement production, industries in high demand as the nation rebuilds its infrastructure. Additionally, the vast phosphate deposits could support a thriving fertiliser industry, boosting domestic and export agricultural production.

To capitalise on these opportunities, it must rebuild its mining infrastructure – roads, transportation and energy systems – which the conflict has severely affected. Once these systems are in place and governance is improved to ensure transparency and accountability, the country will be well-positioned to attract foreign investment.

Achieving a ceasefire, stabilising the economy and rebuilding infrastructure are crucial for Sudan's recovery in 2025. With clear regulation, secure operations and investment in transport and energy, the mining sector could be a key driver of economic recovery, creating jobs, revenues and a path to lasting stability.