Government bans sale of Gold to unauthorized companies

An image showing packaged gold

By Yiep Joseph

 The government has banned the sale of gold to unauthorized companies as a move to protect the national economy

While addressing the gathering in Kapoeta town Eastern Equatoria State, the Minister of National Security Obuto Mamur Mete, revealed that the government banned the sale of gold to unauthorized companies and individuals.

“This program is very critical (ban of the sale of gold to unauthorized companies and individuals), but we must implement it for good of the nation” Mamur stressed.

He said that the government is willing to work with selected and registered companies to advance the exploration, exploitation mining and sale of gold in the country. 

On his part, Louis Lobong Lojore said that the government will give licenses to the selected companies to operate in the gold mining as part of the overall plan to improve non-oil revenues in the collection.

 In 2020, the bank of South Sudan announced plans to purchase crude gold locally in a bid to boost the country’s economy. The particular area of focus was Kapoeta where thousands of artisanal miners engaged in the gold business.

But the plan failed as local miners in Kapoeta prefer selling their gold to Somali nationals who set up the price above the government price.

State authorities admitted that the state government has failed to control and regulate gold mining business in the area

The state investment commissioner revealed that the locals sell their gold to some individuals and foreigners citing that the government has low prices for the gold compared to foreigners.

The Greater Kapoeta region is well known for its vast minerals deposit.

On December 13th, 2017, media reported that residents at Kapoeta said that they found a way to earn money to feed their families through selling gold. In the same, Kapoeta officials announced a ban on gold mining and the locals were directed to sell the gold they have to the state investment cooperatives in Kapoeta.

Middlemen have smuggled gold out of the country to be sold in neighbouring Uganda or Kenya as a gram of pure gold fetches more money compared to the sale in the state.

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