Sudan Ministry of Minerals
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THE REPUBLIC OF THE SUDAN MINISTRY OF MINERALS Geological Research Authority of Sudan (GRAS) MINERALS POTENTIAL OF THE SUDAN & INVESTMENT OPPORTUNITIES By Dr. M. Abu Fatima: Director General of (GRAS) - 2018 Outlines 1. Introduction 2. Pan African 3. Why Sudan 4. Mineral Potential of the Sudan 5. The Mineral Sector Developments 6. Investment Opportunities in Mineral Development 7. Way forward 2 Web site: www.gras-sd.com Email: [email protected] Fax: 249 11 776681 Sudan Mining has a broad impact on the national economy. Mining provide jobs, pays salaries and generates value in all 18 states. Infrastructure in Sudan is challenging due to fast growth 3 Sudan | Diversely rich country GDP $95.6 BILLION • LARGEST ECONOMY IN EAST AFRICA (6TH IN AFRICA) 39.6M POPULATION • OVER 50% ARE BELOW 25YRS $2,140 GDP PER CAPITA • HIGHEST IN EAST AFRICA 200 MILLION ACRES OF ARABLE LAND MINING – 2ND GOLD LARGEST PRODUCER IN AFRICA VAST UNDERGROUND WATER RESERVES POWER & IRRIGATION – THE RIVER NILE 150 MILLION LIVESTOCK HEADS OIL & GAS RESERVES 4 The mineral sector’s influence on Sudan’s economy was significant because of petroleum production and refining. In recent years, cement and gold production became more significant to the Sudanese economy. In 2017, Sudan played a significant role in the global production of gold, accounting for nearly 4% of the world’s gold mine output. 5 Sudan | Post Sanctions “Revival Beckons for Sudan as U.S. Lifts Economic Sanctions” - Bloomberg, 30th January 2017 • Banking Community Engagement: – Have engaged in several forums inviting banking officials to interact with US officials including OFAC to clarify “risks” of doing business with Sudan – Reengagement by regional and international banks aligning with sanction removal – Employing a risk-based approach Vs. wholesale “derisking” • International Trade and Development Organizations: – Sudan to renegotiate debts and reactivate memberships – Potential availability of institutional funding and finance – Potential availability of Export Guarantees /Insurance for Sudan Business • International Business Community: – Reevaluate Sudan’s risk profile – move from sanctions risk to reputational risk – Reinitiate dormant/expired agencies impacted by sanctions as first step – Products that were previously restricted due to US content now open for 6 business ASM GLOBAL Sudan within the 20 countries producing 38% of PERSPECTIVE world gold mine production • 30 million ASMs in 50 countries Worldwide • 12% of global Gold 7 4 production (+/-350 tonnes) Globally total Artisanal 3 workers are 30 million, 10 1 million are in Africa and more than 1 million in Sudan 9 (10% relative to Africa) 10 Ton 8 6 1 403 2 2 250 3 230 5 4 230 5 170 6 165 7 102 8 95 9 90 7 16 10 89 Mining Objectives And add value to the mineral product - Diversify the sources of national income in order to revive the economy - Increase Gross Domestic Product and enhance sustainable development And attract foreign mining investment Invitation Card Sudan is located in the Arabian Nubian Shield (ANS) and covers a big surface area and has diversified geology which merges with neighboring African countries. Sudan has a huge mineral potential, especially in the Nubian Shield, waiting to be explored , evaluated and developed. The extent and orientation of major Pan-African suture zones in Sudan and adjacent areas must be researched and mapped to guide mineral exploration. Infrastructure is developing, and the environment of investment is encouraging. Invitation is extended to investors to visit and explore Sudan, and to invest in the mineral sector. African crustal basement (after Gubanov & Mooney 2009). The African continent preserves a long geological record that covers almost 75% of Earth’s history. The Pan-African orogeny (c. 600–500 Ma) brought together old continental kernels (West Africa, Congo, Kalahari and Tanzania) to form Gondwana and subsequently the supercontinent Pangaea by the late Palaeozoic. The break-up of Pangaea since the Jurassic and Cretaceous, primarily through opening of the Central Atlantic, Indian, and South Atlantic oceans, in combination with the complicated Douwe J. J. Van Hinsbergen et al. Geological subduction history to the north, gradually 10 Society, London, Special Publications 2011 shaped the African continent. Why Arabian-Nubian Shield (ANS)? Arabian-Nubian Shield +1,000 recorded ancient copper and gold mines Arabian-Nubian Shield +6,000 Prospects and Occurrences Only a handful are currently in production or, under development for mining Multiple deposit styles already demonstrated (Orogenic, VMS, Epithermal, Intrusion hosted, porphyry copper) Australian Shield Comparison to the Canadian and Australian Shields The Canadian and Australian ‘Shields’ host a number of world class ‘mining camps’ of varying mineral types (base metals, precious metals, diamonds, uranium, rare earth elements) Canadian Shield This implies the Arabian-Nubian Shield (ANS) is under explored and has many world class discoveries to be made 11 Gold & Base Metal Mineral Occurrences in the ANS Orogenic Gold Occurrences - Arabian Nubian Shield (Peter Johnson Base Metal Mineral Occurrences - Arabian Nubian Shield (Peter Johnson 12 Presentation Asmara 2013) Presentation Asmara 2013) Arabian-Nubian Shield Significant Mines SUDAN Hassai VMS Deposit (Sudan Government 60% , Weather Investments II 40%) Arabian- Nubian Shield With Significant Modern Deposits Commenced gold production in 1992, only modern Mine in operation in Sudan 2014 Indicated resource of 80.7mt at 1.27g/t Au (3.29moz gold) and 1.12% Cu (905,000 tonnes) 2014 Inferred resource of 36mt at 1.09g/t Au (1.29moz gold) and 1.11% Cu (403,200 tonnes) Orca (Meyas Sand), Kosh, Managem, Delgo (Tahi), Orshab, and many others in gold production SAUDI ARABIA Jabal Sayid VMS Deposit (Barrick Corporation 50%, Ma'aden 50%) Only foreign controlled Mine under development in Saudi Arabia Barricks share of 2016 Proven & Probable Reserve (627mlb copper) ERITREA Bisha & Harena Gold rich VMS Deposit (Nevsun Resources 60%, Eritrean Government 40%) 31 Dec 2015 Reserve (607,666oz gold), (34.1moz silver), (552mlb copper), (2,582mlb zinc) Commenced commercial gold production in February 2011 - on budget and on time Commenced commercial copper production in Q4 2013 – under budget and on time Zinc expansion commenced in mid 2016 and is expected to be - on time and under budget EGYPT Sukari Gold Deposit (Centamin Egypt Ltd - 50:50 Profit Share with Egyptian Government) Commenced commercial production in Q2 2010, only modern Mine in operation in Egypt 30 June 2015 Reserve (8.8moz gold) 30 June 2015 total Measured & Indicated resource (13moz gold) 13 Nubian Shield Mineralization • VMS Deposits : Red Sea Region (Ariab and others), Esat Nuba Mountains, West Nub Mount (Abu Tulu), Nubia (Haissub). • Sedex (Abu Sammar). • Podiform Chromite Deposits • Epithermal Deposits: Many localities need to be revisited (Kushanteib Tohamium). • Cu Porphyry: Oheir and others. • Mesothermal & Orogenic Gold: Everywhere. • Rare Metals: (Red Sea Region (J. Ayub, Nikrab…etc) 14 Why Sudan? | Unique Opportunity Technical: The Republic of Sudan is one of the Africa’s largest countries after • Agro and Livestock Industries – enhancing • Highly prospective geology Congo and Algeria with estimated export value e.g. agro-processing • Clear Gold endowment 65% of the country having highly prospective geology for minerals • Oil & Gas • One of the last unexplored exploration • Extractive Industries (mining & processing) countries in Africa • Consultancy & Design Services Local/Political: • Education – Training and Capacity Building • One of the most stable • Power Generation governments in Africa • Financial Services • Strong legislative framework • IT services and e-commerce infrastructure • Government Support • Unique Opportunity - Market reintegrating • No Security Issues with the Global economy after 20 years • Easy to work An Open book geology 15 Map of Mineral Resources of the Republic of Sudan on geological basis in GIS format, made by Zarubezhgeologia The Republic of Sudan is one of the Africa’s largest countries after Congo and Algeria with estimated 65% of the country having highly prospective geology for minerals exploration Sudan is Highly Prospective country with Significant Exploration Potential Mining-Friendly jurisdiction with a Supportive Host Government www.rosgeo.com 18 Red Sea Deep metalliferous Deposits 43-101 COMPLIANT RESOURCE ESTIMATE (ACA HOWE) •80 800 000 tonnes DSF • 1 642 630 tonnes Zn • 368 480 tonnes Cu • 3 350 tonnes Ag • 47 tonnes Au* • 5 368 tonnes Co* • 3 830 000 tonnes Mn* • 6 500 tonnes Cd* • 80 000 tonnes Pb* Average 8.5 metres of sediments *Non Compliant Resource Estimates Minimum Resource Excludes Basal Sediments & Vent Feeder Systems (high grade Cu etc.) Continuation of Major Pan-African Structures in the Nubian - Arabian Shield and the foreland region - The extent and orientation of the Pan-African structures in Sudan need more investigations. Metallogenic province - The granitoid-greenstone terranes of the Nubian or mineral deposits and Shield are well-endowed with volcanogenic mining prospects in massive sulphide deposits (VMS), porphyry Cu, Sudan are aligned with vein gold deposits, and RM-REE. A good example the metallogenic is the VMS deposits of the Ariab Mining District. provinces that - Vein type gold deposits occur in old workings at associated with major many localities almost every where in the geodynamic events and Sudanese basement. tectonic