REPUBLIC OF SOUTH SUDANMINISTRY OF PETROLEUM & MINING
JUBA
MINING INVESTMENT OPPORTUNITIES IN SOUTH SUDAN
Dr. Andu Ezbon AddeUndersecretary for Mining
Presentation at Round table Discussion in Mining on Top: Africa- London Summit
INTRODUCTIONLOCATION OF SOUTH SUDAN IN AFRICARECENT DEVELOPMENTS IN THE MINISTRY OF PERTOLEUM AND MININGTHE MINING OPPORTUNITYIMPLEMENTATION OF THE MINING ACT OF 2012RANGE OF MINING LICENSES MINING SECTOR A TOOL TO DEVELOPMENT OF OTHER INDUSTRIES ARTISANAL GOLD WORKINGINVESTMENT IN INDUSTRIAL MINERALS /BUILDING MATERIALSPROCESSES OF ACQUIRING A MINERAL CONCESSION IN SOUTH SUDANLEGAL FRAMEWORK FOR MINERALS IN SOUTH SUDANCONCLUSION
South Sudan is rich in Mineral resources– with over 20 different types of Minerals with Gold being the Most
important . The others are Copper , Iron Ores ,Bauxite Lead , Zinc, Manganese ,Nickel , Cobalt, diamonds, Uranium, etc
South Sudan is establishing a legal and regulatory environment which includes competitive and open
bidding, new licensing frameworks, EITI principles, and HSE assessments, among other components…
… allowing the private sector to embark on greenfield opportunities and service existing operations in South
Sudan’s mineral resources frontier.
INTRODUCTION
Location of South Sudan in Africa
RECENT DEVELOPMENTS
Implementing the Mining Act 2012
“Mining” Mineral Titles 2013 enactment and execution Establishment of mining license cadastre system based on
international standards.
Licensing of Mineral Titles to commence in July 2014
Two grandfather licenses signed and over 60 tentative applications received for mining licenses
THE MINING OPPORTUNITY
The mineral wealth of South Sudan is in the very early stages of exploration
offering green field for opportunities
Implementation of the Mining Act of 2012 and subsequent regulations create the environment for private investment
Establishment of mining license cadastre system based on international standards.
Establishment that an Exploration License Title Holder with an economic find has the exclusive right to apply for a Mining License (Security of Tenure).
Provision of one of the lowest tax jurisdictions in sub-Saharan Africa with a maximum statutory rate of 20%, simple and transparent depreciation for capital investment, and 5-year loss carry-forwards.
Option equity for the Government of South Sudan, up to 15% stake in large scale mining operations.
Relinquishment or formalization of illegal operations.
Implementation of the Extractive Industry Transparency Initiative (EATI).
RANGE OF MINING LICENSES ARE NOW AVAILABLE
License Planned Duration Area Extension
Reconnaissance 26 2 yearsMaximum of 25,000 sq. km and Minimum of 10 sq. km
Not extendable
Exploration 94 5 yearsMaximum of 2,500 sq. km and Minimum of 10 sq. km
Renewable for 2 terms of 5 years each
Large Scale Mining 2 25 yearsAs required by the Mining Operation
20 years each
Small Scale Mining 215 10 years 1 sq. kmRenewable for 10 years
Artisanal Mining License
200 1 year 1 sq. kmMust be renewed annually
•Operating in South Sudan also provides market access to Common Market for East and Southern Africa (COMESA) and international markets of European Union (EU), General Systems Preference (GSP), and American Growth and Opportunity Act (AGOA)
OPPORTUNITIES TO INVEST IN THE MINING SECTOR CAN SUPPORT DEVELOPMENT OF OTHER INDUSTRIES
Gold mining, both in the form of artisanal and small scale operations for job creation and of industrial scale, commercial operations, based on identification of world-class underground deposits.
Massive scale of Industrial mineral quarrying for building and road construction (>100 mil m3)
Opening of lime quarries and the construction of kilns for the manufacture of cement
Opening quarries and the associated rough stone cutting installations for marble/decorative stones. Finish cutting and polishing facilities can be added as a follow-on phase.
Gemstone mine – e.g. diamonds
Provision of required infrastructure equipment and experience for the Mining Directorate: Development and implementation of a digital mining cadastre system Capacity building Working with partners for practical experience
NEW KUSH EXPLORATION MINING COMPANY AND EQUATOR GOLD ARE HAS OPERATING SINCE 2007 UNDER A PROVISIONAL LICENCES
ARTISANAL GOLD WORKING
The Natives are engaged in rewarding Gold working
Current gravels
Concealed gravels
Eluvium
Weathered rocks
The Secondary Gold is 800- 900 fine with 4-11% Silver.
ARTISANAL GOLD WORKING Con.......
ARTISANAL GOLD WORKING Con.......
ARTISANAL GOLD WORKING Con.......
ARTISANAL GOLD WORKING Con.......
ARTISANAL GOLD WORKING Con.......
ARTISANAL GOLD WORKING Con.......
PROCESSES OF ACQUIRING A MINERAL CONCESSION IN SOUTH SUDAN
Choose the mineral (s) of your interest, from our vast mineral occurrences.
Choose the area, preferably after a reconnaissance study on the ground, complete with its coordinates.
Register your Company in South Sudan and obtain all legal documents and prepare your work plan program in accordance to the Ministry of Petroleum and Mining’s requirements.
Consult with the Cadastral Office in the Ministry of Petroleum and Mining, to check if the area of your interest is free and then apply.
Pay the prescribed fees after being awarded the block by a Committee and then mobilise the resources for the work.
Head to your Concession after presenting your work program and budget to the Ministry of Petroleum and Mining for discussion and approval.
The State Governor, the County Commissioner, the Payam Administrator plus the Boma Chief all line up in that order to receive and give support to the Investor now considered as a Family member.
Throughout the investment period the Ministry of Petroleum and Mining assigns competent geologists to work with the Company and be the link between the Company, Community and the Ministry of Petroleum and Mining to ensure smooth operations.
INVESTMENT IN INDUSTRIAL MINERALS /BUILDING MATERIALS
High demand for Construction Materials in South Sudan
Marble/Limestone for Cement Manufacture found in four main areas in South Sudan.
High Concentration of CaO(>50% ) and Low Concentration MgO(<1%) in Eastern Equatoria State.
Huge Deposits of Clay , Sand and Gravels every where.
Aggregates production for Construction in all Major towns .
LEGAL FRAMEWORK FOR MINERALS IN SOUTH SUDAN
To ensure optimum legal cooperation with investors in our Country, we secured the services of a Legal Consultant from Adam Smith, a British Law Firm. So far our Petroleum and Mining Laws are firmly in places and investments are flowing in, despite security problems that we occasionally have.
The Mining Laws of South Sudan have been simplified and designed to encourage investors with any amount of budget to flourish in South Sudan: imports free of Customs duties, generous tax holidays etc.
A hint that our Mining Laws are fair may be noticed from two British companies – Equatorgold and New Kush Exploration and Mining which are consistently exploring gold in South Sudan. Both are at the stage of evaluation diamond drilling aimed at putting their gold production into the world market by 2016.
A copy of the Mining Act, 2012 governing the mineral operations in South Sudan may be obtained from Ministry of Petroleum and Mining on request
CONCLUSION
In conclusion, South Sudan is set on a firm footing under an elected Government. It is a member of regional, continental and world communities.
Its geological aspects are conducive to various economic mineralisations. There are many ore resources that it wishes to exploit, with investments from local and international companies. It has devised its laws and mining regulations to attract investors.
All interested investors are invited to South Sudan.
THANK YOU FOR YOUR ATTENTION!
FOR MORE INFORMATION, PLEASE CONTACT
Arkangelo Okwang OlerDirector General of Mineral Development
Email | [email protected] | +211 954942700, +211 921376848
Honorable Stephen Dhieu DauMinister for Petroleum and Mining
Dr Andu Ezbon AddeUndersecretary for Mining
[email protected]; +211956900759
Thongjang Awak ThongjangDirector General of Geological Survey
Mobile | +211 (0) 912 716 161
