Dubai \u2013 Business News Report|| The Sudan Mining Companies Union has issued a stern warning regarding the suspension of gold production operations beginning in early October next month. This decisive action serves as a direct protest against the current mechanism for purchasing and pricing gold implemented by the Sudan Central Bank. The union explicitly stated that continuing with this specific framework threatens the fundamental ability of mining companies to sustain their production activities.<\/p>\n
Furthermore, the organization highlighted that the existing policy jeopardizes the capacity of these enterprises to fulfill their critical financial and operational commitments. In an official statement released late Saturday and published in local media outlets, the union clarified its position. They emphasized that mining firms do not oppose the state\u2019s right to regulate the gold sector or collect its legal dues. However, they maintain strong reservations regarding the specific method used to purchase output, set prices, and settle values.<\/p>\n
The union firmly rejected any attempt to burden producers with costs arising from foreign exchange market imbalances, liquidity shortages, inflation, or broader monetary policies. It was clearly asserted that mining companies are not responsible for determining exchange rates or managing the foreign currency market. Consequently, the continuation of the current mechanism will inevitably reduce profit margins and potentially threaten the viability of ongoing operations amidst various obligations.<\/p>\n
Companies face pressing commitments related to wages, fuel, energy, spare parts, transportation, maintenance, suppliers, financiers, as well as taxes and government fees. The union noted that all channels of institutional communication and dialogue with the central bank and relevant authorities have been exhausted. Multiple meetings were held with the General Intelligence Service, Economic Security, and Mining Security departments to convey these concerns.<\/p>\n
These discussions focused heavily on the pricing mechanism and its potential impact on production levels and foreign currency inflows. Based on these unresolved issues, mining companies announced the initiation of procedures to cease production starting September 30, leading to a complete halt on October 1 unless a clear and binding solution is reached before then.<\/p>\n
This dispute occurs while gold remains one of the primary sources of foreign currency for Sudan. Simultaneously, mining companies are grappling with rising operational costs and significant disruptions in the foreign exchange and liquidity markets. Current disagreements center on how the central bank purchases output and settles payments, with producers demanding a mechanism aligned with economic value and production costs versus state regulatory rights.<\/p>\n
This story was produced in the newsroom from the disclosed sources named above.<\/em><\/p>\n