The Republic of Chad has suspended the granting of new mining prospecting authorizations across the country until further notice, placing a temporary freeze on new exploration activity as the government seeks greater control over its mineral sector.

The decision was announced by Mines, Petroleum and Geology Minister Fatima Haram Acyl in a September 11 circular, following a ministerial order signed on September 10.

The suspension applies to new applications for mining prospecting authorizations nationwide, although authorities have not disclosed when the measure will be lifted or provided a detailed explanation for the move.

The timing is significant for Chad, where gold is becoming an increasingly important part of efforts to diversify the economy beyond oil.

The country was reported to have 324 gold exploitation sites in 2024, while authorities have also announced plans for four gold-processing plants aimed at increasing domestic value from its mineral resources.

The ministry clarified this in a statement that the decision is based on a ministerial decree that mandates the halt of new licenses for exploration and mining activities nationwide.

The ministry has urged companies operating in the mining sector, economic operators, and all relevant partners to strictly adhere to this measure, without providing additional details regarding the duration of the suspension or its reasons.

Gold is becoming a bigger part of Chad’s export economy

Although Chad is not one of Africa’s largest formal gold producers, the metal has become an increasingly important source of export earnings, particularly through artisanal and informal mining.

The World Bank estimates that gold accounted for about 37% of Chad’s goods exports in 2023, second only to crude oil at 69%.

The bank has also estimated that artisanal mineral extraction could be equivalent to about 3.8% of Chad’s GDP, highlighting the economic weight of a sector that remains difficult to measure because much of its activity is informal.

By suspending new prospecting authorizations while it works on a new mining code, Chad could be seeking to bring exploration and mineral production under tighter regulatory control, reduce speculative license holding and ensure a larger share of the value generated by its resources remains within the country.

The Ministry of Mines, Petroleum, and Geology in Chad has announced the suspension of all new applications for mining licenses across the country, effective September 10, 2026, until further notice.

This decision comes at a time when the mining sector is experiencing increased interest in the country, making this step a focal point for investors and stakeholders in the extraction activities.

Additional Sources: Africa Press

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