National, News

Gov’t woos investors for rare minerals

By Kei Emmanuel Duku

Minister of Mining, Martin Gama Abucha, has urged the private sector from the Great Lakes Region and beyond to invest in the country’s abundant potential in critical and rare earth minerals, which are essential for energy transition and diversifying the nation’s economy.

While addressing delegates and investors at the International Conference on the Great Lakes Regional Forum in Juba, which focused on “Mineral Value Addition and Cross-Border Trade,” Abucha highlighted that South Sudan possesses over 40 tons of copper in Western Bahr el Ghazal State, alongside substantial reserves of critical minerals such as nickel, silver, cobalt, zinc, and manganese in various parts of the country.

In addition to rare earth minerals, Abucha noted the rich potential in limestone and cement.

“We have huge potential still untapped because surveys show that the country has more than 11 million tons of marble including diamond, Uranium, lithium, and iron ore and with the current peace there is need for investors,” said Abucha.

He added that the Ministry has commissioned and integrated a geo-scientific survey, the first of its kind on the continent, to determine the quality and quantity of various types of minerals in the country, which remain largely unknown.

The Minister also mentioned that the Ministry will begin a comprehensive geological survey of South Sudan’s mineral potential early next year.

Meanwhile, Dr. Cosmas Pitia Kujjo, the Undersecretary in the Ministry of Mining, emphasized that investing in future rare and critical minerals will aid South Sudan’s transition to clean energy.

He noted that copper ore is used in manufacturing solar panels, copper wires, lithium batteries, and other electronic appliances.

According to Kujjo, most rare minerals are found in Africa and Western Asia, depending on the types of rock formations.

He revealed that during a recent mineral conference in Saudi Arabia, the Saudi government pledged $2.5 billion to help explore South Sudan’s rare earth minerals.

He stated that this investment would facilitate value addition through domestic refining before the minerals are exported.

Kujjo mentioned that in the past few years, the ministry has issued over 100 gold mining licenses, but more recent interest has emerged in exploring rare earth minerals.

“Companies and individuals have now understood the value of critical minerals and they are now coming for copper, and aluminum, others are even coming for graphite,” said Kujjo.

He highlighted a South African company called News Kush Mining, which operates in the Kapoeta area in Eastern Equatoria State.

This company began exploring rare minerals, including gold, even before South Sudan gained independence from Sudan.

Dr. Kujjo noted that the company has conducted airborne mapping, visited the areas, and is currently estimating the exact quantity of minerals in Eastern Equatoria.

Dr. Emmanuel Makumba Mali, Director of the Democracy and Good Governance Program at the International Conference on Great Lakes Regions, emphasized the importance of value addition and the certification of minerals to prevent illegal smuggling.

He suggested that issuing certificates of origin to exporters and artisanal miners could help curb illicit trade.
Makumba urged Great Lakes countries to invest in smelters, refineries, and research and technology to maximize the economic benefits of their mineral resources.

By processing minerals domestically, countries can significantly enhance their value and reduce reliance on imports.

“To optimize economic benefits, mineral resources should undergo domestic processing and value addition. By transforming raw materials like iron ore and rare earth minerals, we can significantly increase their worth. For example, refining gold from a $1 extraction cost to a $2 intermediate product enables us to sell it for $100.

Conversely, exporting raw materials leads to importing the final product at a significantly higher price,” concluded Dr. Makumba.

 

 

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