Gold smuggling has surged along the Egypt-Sudan border due to ongoing conflict, drawing thousands into an illicit trade network. The Egyptian government has been accused of turning a blind eye to these activities as they seek to stabilize the economy and bolster gold reserves amid currency devaluation. This situation highlights the intersection of organized crime and economic necessity in the region.
The prolonged conflict between the Sudanese army and the Rapid Support Forces (RSF) has catalyzed a flourishing gold smuggling operation along the border of Sudan and Egypt. This illicit trade, encompassing tens of thousands of individuals from both countries and beyond, is part of an extensive web of organized crime. The Nubian region of southern Egypt, rich in gold with about 125 traditional mining sites, is complemented by expansive mining opportunities in the Eastern Desert and areas straddling the borders of Egypt, Sudan, and Libya. The Egyptian Mineral Resources Authority states that the principal mining companies, including the state-owned entities Shalateen and Hammash Misr, alongside Centamin’s Sukari mine, dominate the industry. Recently, Egypt enhanced its gold mining activities by opening new areas within the Eastern Desert region known as the “golden triangle.” Sudanese miner Ahmed Hussien reports that local miners, acting independently and without governmental oversight, have opened over 10 new mining sites in Aswan province alone. Due to the war’s onset, mining in Sudan’s Red Sea, Northern, and River Nile states has expanded, particularly near the Egyptian border, which offers logistical advantages for transporting supplies. Iranian miner Ibrahim noted that areas like Almatar, Almirg, and Alabar have witnessed significant mining activity, thriving due to proximity to Egypt. Aswan’s gold markets become a haven for Sudanese miners selling their gold, often smuggled into Egypt by organized gangs. A Sudanese smuggler shared insights into their illegal operations, detailing how different methods are employed based on the quantity of gold being transported. Hiding gold during legal border crossings is common, with a preference for concealment on personal attire, while smuggling operations often involve tribal networks adept at navigating the complex terrains. The Egyptian authorities have been accused of ignoring these clandestine activities, as the state seeks to replenish its dwindling gold reserves amid currency devaluation. Egypt’s currency lost significant value in early 2023, and in response, the nation has prioritized gold production expansion, evidenced by the increase of its gold reserves from 126 tonnes to record levels by late 2023. However, despite legislation designed to attract investment in gold mining, foreign response has been tepid, albeit with revenue from gold production skyrocketing.
The ongoing conflict in Sudan has exacerbated the already complex dynamics surrounding gold mining and smuggling operations along its border with Egypt. With various factions vying for control, there has been an increase in informal mining operations, often unregulated and involving a mix of local and international players. This situation has transformed the gold trade into a lucrative, albeit illegal, endeavor, impacting both economies significantly. Additionally, Egyptian authorities, motivated by the need to strengthen the national currency, appear to overlook these operations despite their illegality, which has raised concerns regarding governance and economic stability in the region.
In summary, the gold smuggling operations along the Egypt-Sudan border, fueled by the ongoing conflict and the demand for gold in Egypt, illustrate a multifaceted issue involving organized crime, economic desperation, and geopolitical factors. While Sudanese miners seek profitable exits for their gold amid instability, Egyptian authorities’ willingness to overlook the smuggling is likely driven by the need to bolster national gold reserves, suggesting a tacit complicity that complicates the enforcement of laws surrounding illegal mining and trading. As these operations continue to flourish, they present substantial challenges for political and economic stability in both nations.
Original Source: www.middleeasteye.net