Sudan's government must urgently find new sources of revenue, after South Sudan became independent from the north on July 9. Most crude oil resources are located in the south, which has proved a good earner for the Islamist government in Khartoum (now the capital of just the northern part of the country). But Sudan is not only rich in crude oil deposits, but also hosts a wide range of other minerals, which shall be mined in the foreseeable future. Among these minerals is gold, with the northern government pushing gold mining activities to financially compensate expected budget shortfalls of almost $4 billion.

Record high gold prices have led to a growing number of Sudanese small-scale prospectors who digging in search of gold and other valuable minerals. They have to be lucky to find them. But the problem is that most of these miners are operating illegally and without any mining license issued by the authorities. As a result, the government in Khartoum is missing out on taxable income – with new tax revenue urgently needed by the northern state following the secession of the Christian-dominated south on July 9. Frequently illegally-mined gold is smuggled to Egypt, where much of it is sold far under market value, bought by local shop dealers and readied for a sale on world markets.

The secession of South Sudan was preceded by a referendum, in which the vast majority of inhabitants voted for independence from the North. According to official statements from the northern government, political and economic independence for the South is causing Khartoum a budget shortfall of around $4 billion per year. This gap shall be closed by promoting gold mining and other mineral extraction activities. Experts have confirmed the huge number of gold deposits in north Sudan with many areas experiencing a real gold rush. It is estimated that there are some 150,000 illegal mines in the north which could provide the government in Khartoum with billions of additional dollars in revenue every year.

Since most of Sudan's inhabitants live in poverty and earn barely $1 a day, record-high gold prices have proved to be a real blessing for many of them, with gold mining earnings helping many of them improve their standard of living. According to official data, Sudan's licensed and legally operating mining companies only have a mining capacity of up to 12 metric tons of gold per year. Nevertheless Sudan's political leadership aims to generate yearly revenues of $3 billion from gold mining activities in the foreseeable future. But this goal will only succeed if the government gets a grip on the majority of illegal small-scale mines and makes them pay taxes. Moreover, Khartoum plans to generate annual revenues of another billion dollars from the mining of other valuable metals and minerals. All of this is needed if the north is to make up for the short-fall in oil revenues caused by the secession of the south.