The ongoing conflict in Sudan, now over 18 months old, has created fertile ground for illicit gold smuggling and mining activities along the border with Egypt. This lucrative but illegal trade involves tens of thousands of people and operates within a complex web of organized crime. Tribal networks, economic disparities, and limited government oversight have all contributed to the booming trade, which spans across northern Sudan and southern Egypt.
Expanding Mining Operations on Both Sides
Sudan has seen a rapid expansion of mining activities since the outbreak of the conflict in April 2023. In Red Sea, Northern, and River Nile states, new mining sites have been established, while existing ones have been expanded. Sites near the Egyptian border are especially successful due to easier logistical access, including the transportation of supplies from Egypt.
On the Egyptian side, mining activities have also intensified, particularly in the Nubian region, the Eastern Desert, and the “golden triangle” area near the Red Sea coastline and the Sudanese border. According to Middle East Eye, Egypt has around 125 traditional mining areas, with both state-owned enterprises and multinational corporations driving production. Local miners in Aswan province have also opened numerous unregulated mining sites, further complicating oversight.
Sudanese miners often rely on tribal networks, such as the Ababda, Rashaida, and Bishari, to smuggle gold across the border. These tribes have deep knowledge of the desert terrain and manage secret routes through mountains and deserts, ensuring the safe passage of gold in exchange for commissions.
Smuggling Tactics
Gold smuggling operations rely on various methods, depending on the quantity being transported. Individuals crossing the border legally often conceal gold in their clothing or, in some cases, women hide it on their person. For those crossing illegally, smugglers may ask passengers to hide gold in exchange for reduced transportation fees.
Organized smuggling networks use specific meeting points in desert areas like Aswan, Kom Ombo, and Edfu, where gold is exchanged for money or other goods, including fuel, mercury, and cyanide. Payments are often made in U.S. dollars, either in advance or at the point of exchange. In some cases, vehicles used for smuggling are sold or dismantled immediately after crossing the border to avoid detection.
Economic Factors Driving the Trade
The economic disparity between Sudan and Egypt has further fueled the smuggling trade. In Sudan, a gram of 21-karat gold sells for $60, whereas in Egypt, the same gold fetches over $80. This price difference has made Sudanese gold highly desirable in the Egyptian market.
Egypt’s government has been focusing on increasing its gold reserves to stabilize the Egyptian pound amid ongoing economic challenges. Gold reserves reached an all-time high of 126 tonnes in 2023, while revenues from gold production rose from $6 billion in 2022 to $9.5 billion in the first half of 2024. Critics allege that Egyptian authorities have turned a blind eye to smuggling, as it indirectly supports the country’s financial stability.
The Role of the Halaib Triangle
The disputed Halaib Triangle, claimed by both Sudan and Egypt, has become a significant mining hotspot. The area near Shalateen, the largest town in the region, has witnessed increased mining activity. Miners and smugglers use this territory to their advantage, exploiting the lack of clear jurisdiction to expand operations.
Implications for the Region
The burgeoning gold trade offers both opportunities and challenges for those involved. While it provides income to miners and smugglers, it also perpetuates organized crime, human trafficking, and economic exploitation. Refugees and migrants from Ethiopia, Eritrea, and other African countries are often drawn into the trade, further entrenching illegal practices in the region.
Efforts to address these challenges require stronger cooperation between Egypt and Sudan. Measures to regulate mining activities, enforce border security, and combat organized smuggling networks are essential to curb the trade’s negative impact while ensuring that resources benefit local populations rather than criminal enterprises.
This complex dynamic highlights the interconnectedness of economic and geopolitical factors in one of the most resource-rich regions in the world.