Tuesday, January 01, 2013

Sudan Economic News: Developments in Gold, Oil and Hydro-electric Power

Economic Panorama
Al-Sammani Awadallah
Sudan Vision

Sudan inaugurates first gold refinery

On September 19 Sudan inaugurated first oil refinery to process its growing production of minerals and make up for the loss of its oil revenues in the wake of South Sudan scession.

Mohammed Osman Alzubeir, refinery director, said at the inauguration celebration which was attended by president Albashir: "900 kilograms of gold (328 tons a year) and 200 kilograms of silver will be produced daily. This projected production amount exceeds by far the previously produced amount of 150 tons a year."

Sudan looks to sell $3 billion worth of gold by the end of 2012, an amount two times the revenues of gold from last year.

Today, Mohammed Khair Alzubeir, governor of the Central Bank of Sudan (CBoS) says that gold sales amounted to 58 tons in the last 16 months with revenue of $2.6 billion.

Sudanese authorities look designed the refinery to produce world-quality gold and to limit smuggling to foreign markets such as Dubai. Producers can now gain more profit by selling high-quality gold which in turn will over all the more less incentive for smuggling.

Despite the huge reserves Sudan has, total gold production is harder to lay a finger on given the informal mining sector activity, but Sudan looks to produce 50 tons of precious metals in 2013.

SUNA, the official Sudanese news agency, said that minister Kamal Abd Allatif of mining had announced that 55 companies were given licenses to explore gold.

Currently; most of the gold in the country is produced by small companies and individuals motivated by high gold prices. CBoS buys their gold which formerly used to be smuggled abroad.

"250 thousand Sudanese are exploring gold' Sudanese government announced "mostly in the Nubian desert in the north of the country where gold has been excavated since the age of the pharaohs."

German news agency said today that 112 Sudanese citizens were released after having been arrested inside Egyptian borders which they crossed unknowingly looking for gold.

Sudanese president inaugurates new oil field in South Darfur

Sudanese president Omer Albashir inaugurated Hadida oil field in South Darfur.

He said the government is committed to continuing the implementation of development projects. He notified that several development projects will be inaugurated during the country's celebration of Independence Day.

"This oil field will push the national economy forward and it's a sign the country's economy has not collapsed following the secession of South Sudan." Said the president.

He added that threats will not sway them and the inauguration of a new oil field corroborates that the people of Sudan remain united and refutes the allegations of those who said the country will collapse in the wake of the secession.

"This oil field once again represents an addition to national economy and will enhance the income of the people of Sudan in general and the of the area in particular. He commended the Chinese companies and their national counterparts that worked in hard conditions to render this project a success.

"Ruseiris dam heightening project will be inaugurated on Independence Day. And Sufian Oil field will soon follow." Declared the president.

Minister Awad Ahmed Aljaz of Oil called on the government to devise production plans for the states to compete on implementing. He stressed the importance of receiving the New Year with a plan that makes us a productive nation. He said: "We will continue to explore and produce oil. And Hadida oil field will add 10 thousand barrels a day to the overall oil production of the country."

Albashir inaugurates White Nile sugar factory
President Albashir inaugurated White Nile sugar factory which has an annual designed production rate of 450 thousand tons.

Albashir also inaugurated the accompanying projects: irrigation stations, green harvest sugar cane project, and electricity generation stations.

"The inauguration of White Nile sugar factory is a strong push to national economy and an even stronger response to those who want to see the country fail." Said the president.

He said the government refuses to deal with any companies with ties to enemy or owns by countries with aggressive agenda against Sudan.

He added that development processes will continue and the agricultural projects of citizens will be completed by the end of the year in addition to increasing the area of White Nile agricultural projects.

He also directed the government of White Nile to devise an integrated and comprehensive plan to supply agricultural projects with electricity, increase production, and change living conditions.

Albashir praised the efforts of all those who have taken part in this achievement which was targeted by many western powers by plans aiming to make it a failure and deteriorate the Sudanese economy.

Completion of Ruseiris heightening dam; the longest dam in the world

Mohammed Hassan Alhadari, executive manager of the dams implementation unit (DIU) announced the %100 completion rate of Ruseiris heightening project. He added that the storage capacity of the dam is now at 6 million cubic meters.

In a press release he said: "The project, one that is considered a great addition to development in Sudan, will contribute in great deal to the enhancement of Sudanese economy. The accompanying projects and citizens' housing projects have caused a service and developmental shift in the lives of citizens of Blue Nile. They are an addition to infrastructure and will help attract investment and promote stability. Khadir Mohammed Gasm Alseed, resident engineer, said the heightening project is ready to serve the goals it was intended for.

"The implementation of the project started in May 2008 and completed in October 2012. The project was completed on time and according to the schedule agreed upon with the CCMD, SMEC, and Lahmeyer." Said Gasm Alseed.

He added that at 25 kilometers long, the dam is now the longest in the world.

Sudan increases its oil production

Minister Awad Ahmed Aljaz of Oil said Sudan increased its oil production to 140 thousand barrels a day and that an extra 10 thousand barrels a day will be added now that a new oil field has come into operation.

Sudan seeks to increase the exploration and production of oil and gas after having lost three quarters of its oil production (350 thousand barrels a day) following the secession of South Sudan. The loss of this much oil production has inflicted damage on the economy.

Just recently; PetroEnergy, a Chinese company, started the operation of Hadida oil field which will infuse 10 thousand barrels a day.

Also, last July, Sudan signed a contract with the Canadian company "Stateman Resources" and other contracts with Chinese, Nigerian, Australian, Brazilian, and French companies for oil gas exploration; especially in Red Sea State.

First Vice President (FVP) inaugurates Nagma oil field

FVP Ali Osman Mohammed Taha inaugurated Nagma oil field in South Kordofan which will, in the first phase, produce 6 thousand barrels a day and will eventually produce 30 thousand barrels a day.

The field will also produce 6 mega Watts of electricity at a cost of $5 million a year.

Addressing the inauguration ceremony Taha said the field is yet another brilliant achievement in the oil sector.

On a different account he said development projects such roads and electricity projects, medicine factories, and food security will continue to be implemented despite the plans of enemies against Sudan.

Schlembereger oil company introduces new technology to increase production

White Nile Sugar Factory

General Manager of Schlemberger oil company that his company will introduce new modern technologies to increase production.

He said his company is interested in increasing its activity in the country and contributing to the social development process.

Upon receiving the new General Manager of Schlembereger, Minister Aljaz of oil said his ministry supports all oil companies in the country and will remove all the obstacles facing them.

Aljaz renewed his ministry's resolve to increase and develop oil production in the country and make it better than what used to be through scientific research and new modern technologies.

Export of food oil to Europe

Food oils chamber declared that food oils and their manufacturing refuse will be exported to Europe. It also declared that the Ministry of Finance and National Economy and the Taxation Chamber have agreed to exempt some of the food oil industry products from the Value Added Tax (VAT).

Deputy Secretary General of the food oil chamber Alrasheed Hassan Makki said the tax exemption will help the industry a great deal.

He added that huge amounts of peanuts and sunflower seeds are available.

Alrajihi intends to increase its agricultural investments in Sudan

Suleiman Alrajihi International Trading and Investment Group (a Saudi company) said they are going to increase their agricultural investments in River Nile.

Mayor of Barbar locality in River Nile Hassan Suleiman welcomed the group's interest in increasing its investments in the state.

"Alrajihi's new projects help both Sudan and Saudi Arabia implement make better efforts towards realizing Arab food security." He added.

Aldiyar Alqatariya launches Meshairib project in Khartoum

Aldiyar Alqatariya launched Meshairib investment project, formerly known as Aldifaf, at a cost of $400 million in reinforcement of Sudanese Qatari relations.

Hassan Alfadala, deputy executive manager of Aldiyar Alqatariya real estate group, said the project will create 1000 jobs and enhance the aesthetic face of Khartoum.

A hotel, commercial outlets, and residential villas are among the facilities that will be available in the project.

Sudan agrees to offer Saudi Arabia 2 million hectares for agriculture

Salih Kamil, head of the commercial chamber in Jeddah, said the Sudanese government has agreed to establish a free zone that allows Saudi Arabia to use 2 million hectares for agricultural in Sudan, near Port Sudan.

He added that a meeting was held in the presence of advisor Mustafa Osman in which they discussed the exploitation of 2 million hectares by Saudi investors in Sudan under the regulations of a free zone that entails no particular conditions.

Ministry of Mining says mining revenue will go up to $2.6 million in 2012

Ministry of Mining set regulations for informal mining activities in North Darfur as part of its policy to increase gold production.

Upon inaugurating Independence Day celebrations in informal mining areas in Jebel Amer in Alsereef locality in North Darfur, he said that gold production this year amounted to $2.6 million and that the mining sector has become the saving hope of the country; especially seeing as it has increased the income of thousands of citizens.

Khartoum and Juba agree to put an end to the dispute regarding oil transportation prices
Sudanese president Omer Albashir and South Sudanese president Salva Kiir signed trade and cooperation agreements in Addis Ababa, the home of the African Union which mediated the negotiations.

African Union mediator said: "We are sure the agreements are a great step forward in the relations between the two countries."

The defense ministers of both countries also signed agreements to have a disarmed area on the borders between the two countries.

The agreement will allow South Sudan to resume oil exports through a Sudanese port overlooking the Red Sea; a thing which is considered an important step to revitalize the fledgling economy in both countries.

South Sudan had, in January 2012, halted its 350 thousand barrel a day oil exports through Sudan as a result of a dispute over transit fees.

African Union mediator, Thabo Mbeki, had declared in Addis Ababa after the signing of the agreements that both parties have reached mutual agreements regarding all the issues which were outstanding before including transit and processing fees.

"What is left to do now is determining the date on which oil companies will resume the production of and exportation of oil." He added.

The presidents of both countries signed agreements to secure both their borders and to reinforce trade in a step that will lead to the resumption of the vital oil exports. But they failed to resolve the other issues which remained outstanding since the secession of South Sudan last year.

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