The gold sector in Somalia is untapped and needs data and research. A survey of gold reserves in Somalia has not been conducted, but it is known that Somalia has not yet consumed its gold reserves, which are estimated at millions of ounces as an uncertain reserve. Somalia does not have a stock of gold hoarded in the Central Bank. There are no actual confirmed discoveries of gold reserves, despite some discoveries that were made in northern Somalia in the mid-1980s.
This note paper serves as background material for creating gold reserve for the Federal Government of Somalia and developing its gold sector, with a view to diversifying its portfolios of economic recovery and hence improving the economic and the social well-being of its people. The paper also intends to explore and identify potential supply chains of artistically-mined gold all over the country and the best way to source gold for reserve and trade.
Preliminary Discovery of Gold in Eastern and Western Regions of Somalia:
Recently, there have been repeated reports that there are companies that have obtained concessions for gold prospecting in eastern and northern Somalia (Puntland and Somaliland). Despite the limited information available, it is certain that northern Somalia possesses all the required specifications for gold reserves. Given the availability of all the appropriate geological conditions, it is expected that Somalia in general and the northern regions in particular will be able to produce gold in commercial quantities, which puts it seriously in the eyes of those interested in the gold industry.
Since late 2017, the gold exploration and production fever started for the first time in Somalia in a noticeable way. The mining places are concentrated in the northern and eastern regions (Somaliland and Puntland respectively). Somalis and foreigners are equally flocking to the mountains in the north of the Sanag region, where the gold is said to have been found. The number of those wishing to take advantage of this gold is increasing as thousands of young people are in search of gold, using primitive tools to extract it. They are currently prospecting for gold in many areas and places in the mountainous regions. Miners sell gold to middlemen who are said to buy the gold on behalf of foreign companies. And the type of gold that was found is the type known as nuggets, a fact qualifies Somalia for the possibility of becoming one of the gold producing countries in Africa if the gold industry is developed orderly.
Active Gold Mining Areas in the Sanag Region:
Among the most active gold mining areas in the Sanag region, where gold was found, are:
1. Irshida (the gold center in Somaliland)
2. Dhicir
3. Maydh
4. Ceel-Dibir
5. Durduri
6. Cal-Madow
7. Shidan
8. Milxo
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