Chad is another interesting country for anyone in the gold mining industry. The country’s mining sector has seen little development over the years despite concrete evidence that the residence of this vast country could be sitting on tons of gold. The Chad Direction de Recherches Géologiques et Minières (DRGM) and the United Nations Development Program have conducted several geological surveys that show several areas are highly rich in gold. In fact, to help investors with gold mining, the country established the Chad’s mining code in 1995 and this help add some impetus to gold exploration.
Near Egypt, gold mining in Chad dates back to the time of Egyptian civilization. However not much has been done in the recent times, partly due to the country’s past volatile political climate.
Gold Mining in Chad
In the past few decades, quite a number of gold deposit have been discovered although further exploration has not been done to enable commercial mining to take place. Most of the mining has been done by locals on small scale although quite a number of international gold mining companies have expressed interest to begin mining exploration in recent years.
Some of the places where gold has been mined for years include the Mayo Kebbi belts that are made up of Pala, Lere and Mourbame areas in the southwest of the country. This greenstone belt is believed to be the richest gold deposit in the country.
Gold mining has also taken place in Quaddai region especially around the Ade, Goz Beida, Am Ouchar and Ardelik areas. These regions are made of the rich birimian rocks predominant in gold-rich West African countries.
The most commonly gold mined by the locals is the alluvial gold that is usually processed along river banks especially the Mayo N’Dala River. These deposits are easily recovered using primitive placer mining methods. It estimated the Mayo N’Dala river basin has several tons of gold deposits, but they are throughout the river system and widespread. Considerable sampling would be required to set up large-scale mining operations.
So far the only licensed gold mining company to carry out gold exploration and development in the country is the South Korean-registered company, Afko which is exploring for gold region in Pala which is located about 300km to the south of N’Djamena, the capital city of Chad.
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Foreign investors in the gold sector have to certify the countries mineral policy and legislation in place for them to be given the go-ahead to start mining gold. To invest in gold mining in the country, you need to contact the ministry of mines, energy and petroleum as it has the sole responsibility of mining all the gold in the country. Specifically you will be dealing with the department of mining and geology. The department manages all the mineral exploration and mining activities in the country. It is also in charge of partnerships whether locals and international organization and national cooperation. You have to make contact with the department for you to be given the green light to take part in any business involving gold. The UNDP plays a major role in geological surveys in the country and can help you with making the initial contact.
When seeking to invest in Chad’s gold industry it is important that you are familiar with the country’s legal framework for mining. Some of the important laws you should consider are; the General Tax Code, the Labour Code, the Investment Code, the Customs Code and the Environmental Code. To be permitted to explore and mine gold, you start by applying the gold prospecting license to the director of mining and then pay the required fees. Once the license, you can now apply for a gold exploration license. The license will grant you five years exploration years, but you can renew it at the end of the five years.