South Sudan’s mining industry is brimming with opportunities for international companies and investors to participate in the country’s nascent industry. Amid efforts to diversify the national economy and move away from an over-reliance on petroleum, South Sudan has begun to implement a series of measures to attract mining investment and is welcoming foreign players to the market.
Sparking International Interest
In February this year, South Sudan’s Ministry of Mining and South Africa’s Department of Mineral Resources and Energy signed an MOU for collaboration in the mining sector, which will see enhanced cooperation in mineral exploration, knowledge transfer and capacity building. As part of the signing ceremony, South Sudan’s Minister of Mining Martin Abucha called on international investors to participate in the country’s mining industry, inviting private sector players to engage with the Ministry in exploring potential opportunities.
Last June, South Africa’s state-owned African Exploration Mining and Finance Corporation announced it is actively seeking partnerships with South Sudanese mining companies. These partnerships are poised to leverage rising demand for critical and industrial minerals and render the East African country an attractive mining investment destination. South Africa’s Council for Geoscience has also expressed interest in geothermal activities in East Africa, with a specific focus on South Sudan.
Meanwhile, Russia’s state-owned RosGeo signed an MOU with South Sudan’s Mining Ministry to map the country’s mineral deposits. According to the agreement, RosGeo will conduct its geological mapping surveys within two years of the signing, which took place last November.
In an effort to facilitate geological survey work in South Sudan’s largely unexplored resource base, an exploration pact signed in 2019 between the U.S.-based mining firm REE-Magnesium and Canada’s CVMR Inc. enabled the two companies to conduct satellite imaging to map South Sudan’s mineral resources. The exploration pact has also positioned the South Sudanese Government in a space where it is able to explore its own mineral resources and productively develop the sector.
Ensuring a Favorable Regulatory Framework
While South Sudan’s mining industry has sparked investor interest, it still requires a robust and transparent regulatory framework that outlines key provisions. The industry is currently governed by the South Sudan Mining Act of 2012, which enables licenses to be granted to foreign firms to explore the country’s mineral deposits. The act allows the government an optional equity stake of up to 15% in large-scale mining operations and officially establishes the Ministry of Mining as the sector’s regulator. A step in the right direction, the measures in South Sudan’s Mining Act provide the government with a manageable revenue stream that contributes to GDP, while helping reduce dependence on crude oil revenues. To date, the sole mining company operating with a mining license in South Sudan is DCB Ventures.
Geological surveys, mapping and mineral exploration activities represent key areas for foreign investment in South Sudan. The country recently opened its doors to investors in the gold and critical and industrial minerals sectors, which – unlike South Sudan’s mature petroleum industry – lacks the requisite infrastructure and frameworks to fully exploit mineral offerings. Recent exploration studies suggest that South Sudan boasts approximately 8 million tons of copper, along with significant deposits of gold, diamonds, cobalt, nickel, lithium and rare earth elements. The country is currently engaged in a comprehensive geo-mapping initiative to identify its exact reserve quantities, which are poised to promote development and finance opportunities as South Sudan looks to build the early stages of its mining sector.
Further announcements to the country’s mining sector – which include development of a geological laboratory and the set-up of a mining chamber – will be made later this year during the seventh edition of the South Sudan Oil & Power conference and exhibition and its satellite Mining Forum. The forum, which will take place in Juba on June 27, 2024, will showcase new project developments and facilitate partnerships and investment between local and foreign mining firms, while exploring the intersection of mining and energy and how South Sudan can leverage existing infrastructure to support upcoming mining operations.
South Sudan Oil & Power 2024 positions South Sudan at the center of investments and partnerships in the East African energy landscape. Taking place in Juba on June 25-29, 2024, the conference and exhibition invites investors to explore and engage with opportunities across the hydrocarbons, renewable energy and power sectors. To sponsor or participate as a delegate, please contact sales@energycapitalpower.com.
