Sudan Mining Union: Gold Production Threat Issued Over Central Bank Pricing

• The Sudan Mining Companies Union has threatened to halt gold production starting in early October.
• This action protests the Central Bank of Sudan's current gold purchasing and pricing mechanism.
• The union demands the cancellation of Central Bank Circular No. 11, issued May 13, 2026, and a review of the pricing system.
• Companies argue the current price does not reflect the gold's economic value or account for investment costs and risks.
• The union formally communicated its demands to the Minister of Minerals and the Director General of the Sudanese Mineral Resources Company on September 15, 2026.

The Sudan Mining Companies Union has issued a significant Sudan mining union gold production threat, declaring its intention to cease all gold extraction activities starting in early October.

The Sudan Mining Companies Union has issued a significant Sudan mining union gold production threat, declaring its intention to cease all gold extraction activities starting in early October. This drastic measure comes as a direct protest against the current gold purchasing and pricing mechanism enforced by the Central Bank of Sudan.

The union has warned that the continued application of this system jeopardizes the operational viability of its member companies, making it difficult for them to sustain production and meet their financial and operational commitments. This ultimatum follows what the union describes as exhaustive attempts at institutional dialogue and communication with both the Central Bank and other relevant government bodies.

At the heart of the conflict is a deep-seated Central Bank of Sudan gold pricing dispute. The mining union's primary demand is the immediate cessation of the current pricing model for their gold output. They advocate for the adoption of a new purchasing and pricing framework that accurately reflects and preserves the true economic value of their production, while simultaneously safeguarding the state's full legal entitlements.

A key point of contention is Sudan Circular No. 11 gold pricing, which was promulgated by the Central Bank of Sudan on May 13, 2026. The union explicitly calls for the annulment of this circular and a comprehensive Sudan gold mining regulations review of the entire purchasing and pricing methodology.

Companies argue that the existing price fails to account for the actual economic worth of the gold produced, neglecting crucial factors such as investment costs and the inherent Sudan mineral resources investment risk.

Despite their strong opposition to the current pricing structure, the Sudan Mining Companies Union has clarified that their stance does not challenge the state's fundamental right to regulate the gold sector or to collect its statutory dues. Their objection is specifically directed at the practical implementation of the system for purchasing, valuing, and settling payments for the gold produced by their members.

This position was formally communicated in a memorandum submitted on September 15, 2026, to Minister of Minerals Nour Eldaim Mohamed Ahmed Taha and the Director General of the Sudanese Mineral Resources Company. The union emphasizes that while they are committed to Sudan mining sector compliance, the current mechanism creates an untenable operational environment.

The looming Sudan mining union gold production threat carries significant implications for the nation's economy and its vital mineral resources sector. Should the union proceed with its planned halt in early October, it could severely disrupt one of Sudan's key export industries.

The companies' assertion that the current pricing model threatens their ability to continue operations highlights a critical vulnerability in the sector. This dispute could also prompt broader discussions around Sudan gold export policy changes and the overall attractiveness of the country for mineral resources investment, especially if the current impasse is not resolved swiftly and to the satisfaction of the industry.

Source: Original reporting via Sudan Tribune.