Large- scale mining project are not common in Sudan even though the very same geological environment behied the formation of large mineral deposits elsewhere in the World, are found in Sudan. Experts have suggested that there are as yet unexplored deposits of World class material waiting to be unearthed. The contention is supported by resnt discoveries of gold-bearing polymetallic deposits in Ariab- Arbaat belt across the Red Sea Hills.

The contribution of the mineral sector to the national economy is improving to over 3% now. It has remained at 0.1% of GDP since the production and export of Chromate in the early sixties at an annual rate varying between 5 and 15 thousands.

Production of gold started from Ariab Mines at a rate of half a ton in 1991, increasing to 4 tons 1995 to 5.671 tons in 1998. Mining also makes a contribution to local industries, some 600,000 tons of marble, more than 200,000 tons of clay and 20,000- 30,000 tons of gypsum is used annually in the manufacture of cement at Atbara and Rabak as well as in the manufacture of chalk, bricks and ceramics.

The attraction of Sudan as far as the mining industry in concerned, is the possibility of discovering large potential of high value materials, such as gold, copper, lead-zinc, silver, tin, tungsten and uranium. But because the exploration and development of these minerals, are capital intensive, investors, quite rightly, expect rewards commensurate wiht their efforts and funding. To this end, investors enjoy all the incentives and facilities stated in the investment Act, 1996 (revised 1999).

As regards gold and other precious or radioactive minerals, the government prefers to enter into joint venture agreement with clear definitions of the terms and conditions of "operating practices, sharing percentages, employment,training, ecology, safety, fiscal and legal requirements and land tenure" under which an investor will be expected to function.

Sudan has been an important gold producer for over 3,000 years but due to its sparse population and inhospitable wheather prospecting has tended to of a sporadic nature. British companies have extracted several tons of gold from old mines in the Nubian Desert and Red Sea Hills between 1900 to 1950.
Western companies for the Sudan mineral resources have showed renewed interest since the late seventies, particularly in the Red Sea Hills. During the last 20 years the mining industry has developed a substantial body of knowledge and technology resulting in the discovery and treatment of gold deposits, which and lain, undetected by traditional prospecting techniques the application of modern gold exploration technology is still in its infancy in Sudan but it is already yielding significant results.
Ajoint venture, Ariab Mining Company Limited, was formed in 1991, comprising the Sudanese Government (60%) and French companies (40%). Now the company is operating the Ariab gold mines at a rate of more than 5 tons per year.
Eight years passed since establishment and there is still more than 3 million tons of ore reserve grading at 10 gm per ton gold in addition to new discoveries still awaiting evaluation studies.

Several international and local companies are presently applying or negotiating agreements with the Sudanese Government to explore and exploit gold prospects in different parts of the country. As a result of talking place at Deweisshat, Wadi Gabgaba and Wadi Naba in the Nubian Desert by the French BRGM for gold and base metal sulphidies, at Abu Sari for gold by chinese companies and Hofrat En Nahas in south west Darfur by the British Billiton company.

Chromate has been mined from the Ingassana Hills in the Blue Nile region (South East) since 1963. there are currently four mines producing about 15,000 tons of metallurgical chrome ore containing 45-50% cr pre year. The Sudanese chromate ore is of a good quality and is saleable in World markets, but the industry as a whole suffers from poor loading, transport and shipping facilities.
The possibility of establishing aferrochrome production plant at Ed Damazin, utilizing the available electrical power (from the Roseries Dam) has been shown by several studies to be technically feasible. However ,a successful operation would entail scale production to be in the excess of 50,000 tons every year. On top of this, a substantial improvement to the region industrial and transport infrastructure is required.

Massive gypsum deposits outcropping as flat dipping beds, are located at Khor Eit, some 77 km North of Port Sudan and about 7 km West of the Red Sea shore. The reserves has been estimated at 224 million tons to a depth of 50m.It high grade quality and analytically, it compares well with that mined in Europe and USA. Currently, the mine produces 20-30 thousand tons per year. This is sold to cement Works at Atbara and Rabak as well as to the chalk and building material industries in Port Sudan.
This very large tonnage of high quality gypsum together with low extraction costs and wide industrial application, makes it an important asset to Sudan. Therefore, it has a great potential for developing new markets. All that remainsis a regional economic study to assess the market for gypsum and its calcined products in the east Mediterranean or Gulf region.

The marble and granite industries are located in Khartoum where they prduce polished marble, terrazzo tiles and other clading and [pavingproducts. Most of the raw marble cmes from quarries at Summit in the Red Seas Hills and from centeral Butana East of Khartoum.
They yield excellent white, pink black and grey coloured marbles and there is room to expand the industry for both domestic use and and for export markets.
Pink rose marble from summit has already been exported to Belgium in blocks varying from 4 to 10 tons, it received considerable acclaim and was given the trade name Rose Karah.
Granite blocks are quarried from Jebel Rauiyan north of Khartoum and Jebel Mokram near Kassala and transported to granite works in Ommdurman for processing. 500 cubic meters of this granite locks were exported to Italy for tests and were found to be of good quality as regards to colour and texture.

Some mining undertaking in Sudan was initially successful but abandoned for a variety of reasons. Were mining to recommence the potential for a high return is encouraging, to say the least

The mine is located only 16 km west of Marsa Oseif on the Red Sea shore. The proven reserve amounts to 2.1 million tons containing 56-60% iron.
Mining started in the early sixties, where 120,000 tons of iron were exported to Yugoslavia. In 1967, the mine was abandoned because of the closure of the Suez Canal. The Arab Iron and steal company in Bahrain made several attempts, in 1986 and again in 1988 through a Luxembourg firm, to revive production but to no avail.
In its policy to encourage the mining of the Fodikwan iron ore, for export, the government revamped the Marsa Oseif harbour in 1993. Now it stands ready to receive ships 150-180 m long with berths extending to 60 m.

Mica has been extracted since the fortie from mine in the eastern parts of the Bayuda Desert, west of Elsheraik railway station on the River Nile. Almost all the scrap mica extracted during the period 1950-1970 wasexported to Egypt. The total calculated reserve at Rabaha mine amounts to 147,000 tons of which only 2000 tons of scrap mica and 7 tons of sheet mica were extracted. The mine was abandoned in 1984, because of a combination of prevailing low prices, high transport cost and lack of mining equipment.

The preliminary exploration study carried out by the Indian Bonifica Company on the Wadi Halfa oolitic iron ore proved the existence of no less than 250 million tons of international grade ore near the border with Egypt. Extensive exploration and development works can well promote the mining and utilization of this iron ore for the steel industry as well as for export to Egypt.

Because of its proximity to the Abu Gabra oil field, Abu Tulu iron ore should be re-exported in order to increase its 35 million tons reserve and to promote its extraction for small steel works.

The polymetllic sulphides of Zinc copper and gold beneath the present Araib gold mine, estimated at 70 million tons containing 1-2% copper, 1-3.7% zinc, should be explored and and developed for mining.

The Asbestos deposits of Qala En Nahla (Eastern Sudan) and Ingassana Hills (Southeast Sudan). The total proved reserves of the former amount to 20 million tons containing 1.7- 2.7% asbestos fibre and that at the Ingassana Hills 16 million tons containing 1.6- 3% asbestos fiber.

A total of 25 million tons of ore containing 51% talic and 49% magnetite, have to be developed and processed for commercial and industry utilization.

The wollastonite at Dirbat Well NW of Port Sudan (450,000 tons), the phosphate deposit of Jebel Kurun (Nuba Mountains) 336,000 tons. The kyanite deposit of Jebel Qerein 275,000 tons and the black sands at Trinkitat, southern Red Sea coast, all have to be developed and introduced to their different industrial applications.

Based on the value of minerals the method of their extraction and processing technology as well as the geographical location and capita, investment required, investment in the mining projects can be classified as follows:

1. Search for diamond, emerald and other precious stones in Bayuda Desert, Nubian Desert, West Darfur areas adjacent to Chad, Bahr El Ghazal area adjacent to Central Africa Republic.
   
2. Exploration, development and exploitation of copper, zinc, nickel and mercury gossanic belt in the north east Nuba Mountains
   
3. Development and exploitation of copper, zinc, silver, gold deposits at both Ariab and Abu Samr areas in the red Sea Hills.
   
4. The development and processing of the black sands in Trinkitat along the southern Red Sea coast.
   

1. Modernisation of the chromate mines at the Ingassana Hills to increase production.
2. Modernisation of mica extraction from Rabaha mines in Bayuda Desert.
3. Dellineation, market study for the exploitation of the following industrial minerals and rocks: garnet, kyanite, fluorspar, talc, magnetite, and wollastonite, marble and granite.
4. Calcination of gypsun for the production of plasters.

1. Full privatization of the mining sector.
2. Updating and upgrading the existing information and present them in promotional format.
3. Flexibility in adopting different scenarios of partnership with potential investors, the government claims minority share in joint ventures.
4. Representation of the government in the Board of Directors of mining companies only. Exploration is managed by joint committees.
5. Mining is accorded preferential privileges in the investment, Encouragement act 1996.
6. Maximum taxes exemption.
7. Customs exemption.
8. Tax holiday for at least 5 years.
9. 30% Business profit tax.
10. Freedom in the movement of foreign currency.
11. Guarantee of land teure.
12. Resolving disputes at international levels through arbitration.

In Sudan, mining activities are carried out in the general framework of the industrial activities that are regulated by legal texts concerning the investments, taxation, customs, labour, and the environment.
Prospecting, exploration and exploitation of the natural resources are ruled by the "Mining & Quarries Law ", drafted in 1972. it was followed by several amendments that were dircted towards rendering the legislation to meet the shifts in the international mining industry and the intention to attract foreign investors contribution to the national mining industry.
From the legal point of view, mining activities in the exploration and exploitation of the mineral resources are conditioned by the following licenses & leases;

This License permits prospecting for mineral deposits in any piece of land bound by latitudes and longitudes within the territory of Sudan The license is valid for one year, and is renewable for a second year.
Fee 25,000 Sudanese Dinars Renewable 25,000 Sudanese Dinars.

This license permit to carry out exploration and evaluation works on any mineral deposits discovered within the eara bound by the general prospecting license. The license is valid for two years, renewable for a third.
fee=15,000 Sudanese Dinars/ one Sq. Kilometer per year

This lease permits the extraction and exploitation of the economic mineral deposits either for export or domestic use. The validity of the lease is usually 21 years but may be extended to the life of the mine. Royalty may go up to 7% of the international price of the mineral commodity.
Fee= 50,000 Sudanese Dinars/ one sq. per kilometer per year.

Fee= 30,000 Sudanese Dinars/ half sq.kilometer per year.

Fee= 50,000 Sudanese Dinars/ one sq. kilometer per year.

Fee= 30,000 Sudanese Dinars/ half sq. kilometer per year.