By Anil Mathews (ScrapMonster Author)

April 13, 2016 07:55:56 AM

NEW DELHI (Scrap Monster): The report by the U.N. Security Council’s Panel of Experts has raised serious concerns over gold smuggling in Darfur, Western Sudan.

The report submitted to the Sudan Sanctions Committee in December last year, but has been blocked from being published due to objections from Russia. According to Russian government, the report is biased and based on speculation. It needs some controversial paragraphs in the report to be removed before publication. Russian officials stated that the Security Council should focus more on promoting peace and security throughout Sudan instead of condemning the gold industry

The report states that armed militant outfits in Darfur make millions in profit from gold mining and smuggling acts. For instance, former Janjaweed leader Musa Hilal repotedly makes $54 million every year from artisanal gold mining and illegal gold-related activities. Hilal, who has been on the UN sanctions list since 2006, controls one of the region’s largest gold mines. Gold mines deliver access to substantial amounts of money that could possibly trigger new conflicts in the region.

The new U.N. report found that Hilal continues to collaborate with Sudanese forces and engage in millions of dollars’ worth of deals with the Central Bank of Sudan. The panel charges that the bank, which facilitates the gold trade, failed to comply with its obligation to freeze Hilal’s assets.

According to the report, more than $123 million related to the artisanal gold trade has found its way into the pockets of various armed groups throughout Darfur. Estimates indicate that more than $4.5 billion was smuggled from Sudan into the United Arab Emirates between 2010 and 2014.

The UN Panel recommends that the Security Council engage with the Sudanese government to ensure all gold and minerals exported from Darfur are conflict-free before they enter global supply chains.

Incidentally, gold mining has become a key contributor to Sudanese economy in recent years. As per government data, gold’s share of Sudanese exports has surged from 1% in 2008 to as high as 30% in 2014.