The ministry of mining has said the country has immense potential to discover valuable minerals.

James Yousif Kundu, the acting Director-General of Geological Survey at the Ministry of Mining, said there was a strong upward trend in mineral exploration.

He pledged the government’s readiness to attract investors into the country’s mineral sector.

Kundu made the remarks during a presentation on the latest mineral resources trajectory on Wednesday in Juba.

“There is gold in Central Equatoria State, marble and lime in Eastern Equatoria State, and diamonds in Magwi,” he said.

“A crystal was brought to the ministry and tested using a diamond selector, and it was confirmed that this was a diamond.”

Capacity built

While mining has yet to play an essential role in South Sudan’s economy, it is now becoming crucial for the country to develop the industry to attract local and international investors to boost exploration and production.

“We have so far registered 91 mineral exploration companies, 15 small-scale mining companies and 21 mineral dealers’ licenses since 2015 when the country started issuing licenses,” said Kundu. 

However, he said 25 of the 91 mineral exploration companies were revoked due to non-compliance with the legal and regulatory framework.

Investment opportunities

“We have tungsten stone and this is an industry which is not yet exploited in South Sudan,’’ Kundu added.

In some parts of the country, local mining companies have ventured into the mining sector, but with no financial muscle to purchase the much-needed equipment, the mining sector has remained on a low scale.

The director-general of the geological survey stressed the need for local mining companies to partner with foreign investors to get a push.

“There is an opportunity for local exploration companies to partner with international partners to get the technology and financial power to exploit the minerals.”

Kundu said the investors have the security of tenure, arguing that if you have an exploration license and you make a discovery, it cannot be given to another company.

“The first consideration is for the company that has made the discovery.”

Tax exemption, repatriation of company profits, and withholding tax are some of the many opportunities that investors in South Sudan’s mining sector will enjoy, according to the Ministry of Mining.

Investors have to sign community development agreements with communities where the mining is going to take place.

“This is a very important requirement. If they don’t sign this, then the mining will not start,” Kundu said.

There are over 1,000 minerals for investors to choose from and the government has instructed all line ministries to cooperate with investors.

However, Kundu stressed that there is a need to review the Mining Policy 2012 approved by the council of ministers.

“When it was developed we were one ministry of petroleum and mining and now it has taken many years and that’s why we need to review it,” Kundu.