South Sudan opens its doors to global investors in mining

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South Sudan opens its doors to global investors in mining

South Sudan has opened its to global investors interested in the country’s mining sector. Minister of Mines of South Sudan, Martin Abucha made the announcement and said legislation and policy regulations to govern the sector have been finalized.

South Sudan is one of the African countries known as an important oil producer, whereas, South Sudan also has mineral resources like copper, gold, diamonds, limestone among others. Government is promoting investment particularly in exploration and also developing the mining projects in South Sudan.

Regulatory framework

The mining industry of South Sudan started operating from the time South Sudan became a regional government of Sudan in 2005. Its inheritance was a well developed petroleum industry with an extensive network of pipelines passing through Sudan.

However, contractual allotments in mining lacked any form of regulatory framework, resulting in the legislative assembly imposing a moratorium on mining licenses in November 2010. With independence in 2011, the petroleum industry was halted. Subsequent to this event, interest in mining non-fuel minerals has emerged and a new Mining Act has come into effect from December 2012.

Due to the lack of a regulatory framework, the government of South Sudan imposed a moratorium on the issue of mining licences in 2010.The Mining Act of 2012 has since come into force and is the “framework for the management of South Sudan’s mining sector with international standards, including licensing, environmental protection guidelines and the use of technology to ensure as much Mineral Resources as possible are recovered from the ground.” A drafting Policy Framework for the Minerals and Mining Sector, 2013 was under process of approval by the parliament.

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