Chad, a landlocked country in north-central Africa, is endowed with significant natural resources, including gold. The gold sector, primarily characterized by artisanal and small-scale mining (ASM), has seen substantial growth in recent years. Despite its potential, the sector faces challenges related to informality, regulatory oversight, and security concerns. This guide provides an in-depth overview of the gold industry in Chad, focusing on legal frameworks, market dynamics, and practical considerations for purchasing gold from the country.

Overview of the Gold Industry in Chad

Chad’s gold deposits extend over 1,200 km from the south to the west of the country, with artisanal mining operations located around 40 sites dominated by informality and alluvial operations. The Tibesti region, in particular, has attracted many miners since the 2013 gold rush. In 2020, the mining sector in Chad had 63,772 individuals engaged, with a significant portion involved in gold mining.

Despite the prevalence of artisanal mining, the sector remains underdeveloped, and the country’s mineral resources are under-explored. According to a 2010 geologic survey by the Government of Chad, the country may contain deposits of gold, silver, diamonds, quartz, bauxite, granite, tin, tungsten, uranium, limestone, sand, gravel, kaolin, and salt.

Legal and Regulatory Framework

Mining Code and Licensing

The Government of Chad has identified mining as a priority investment sector. In 2018, Chad exported $137 million worth of gold, primarily to Dubai, United Arab Emirates . To regulate the sector, the government created the National Mining and Geology Company (SONAMIG) to boost the mining sector. SONAMIG is intended to accompany foreign investors to ensure safety standards, complete geological mapping, and establish national centers of gold exchange and sale.

Export Regulations

Exporting gold from Chad involves several steps:

• Export Declaration: Miners must notify the Ministry of Mines of their intent to export gold.
• Assaying: Gold must be assayed to determine its purity and value.
• Documentation: Necessary export documents, including assay reports and customs declarations, must be prepared.
• Customs Inspection: The Chadian Customs Authority conducts inspections and seals the gold before export.
• Export Fees: An assay fee is charged by the Ministry of Mines.

Despite these procedures, illegal gold exports remain prevalent due to weak enforcement and the high profitability of illicit trade.

Gold Pricing in Chad

Gold prices in Chad are influenced by global market trends and local factors. As of March 2025, the price per gram for 24-karat gold was approximately 57,856.71 Central African CFA Francs (XAF), translating to about $95.97 USD per gram . Prices vary based on purity levels, with 22-karat gold priced lower.

Purchasing Gold from Chad

Identifying Reputable Suppliers

Given the informal nature of the gold mining sector, it’s crucial to engage with reputable suppliers. Some companies involved in gold mining and trading in Chad include:

• Wigmore Trading: A company that partners with local miners to buy and export gold from Chad.
• Chad Gold Exporters: Local exporters who facilitate the sale and export of gold.

Due Diligence

Before purchasing, conduct thorough due diligence:

• Verification of Licenses: Ensure the supplier holds valid mining and export licenses.
• Assay Reports: Request assay reports to verify the purity and quality of the gold.
• References: Seek references or reviews from previous clients to assess the supplier’s reliability.

Export Process

The export process involves several steps:

• Documentation Preparation: Gather all necessary documents, including assay reports, invoices, and export declarations.
• Customs Clearance: Coordinate with customs officials for inspection and sealing of the gold.
• Logistics: Arrange for secure transportation to the destination country.
• Insurance: Obtain insurance coverage for the shipment to mitigate potential risks.

Ethical Considerations

Investors should ensure that the gold they purchase is sourced ethically:

• Conflict-Free Certification: Verify that the gold is not linked to conflict financing or human rights abuses.
• Environmental Standards: Ensure that mining operations adhere to environmental protection standards.
• Transparency: Engage with suppliers who provide transparent information about their sourcing and operations.

Challenges in the Gold Sector

The gold sector in Chad faces several challenges:

• Informality and Regulation: A significant portion of gold mining is unregulated, leading to issues with traceability and accountability.
• Environmental Impact: Artisanal mining practices can lead to environmental degradation, including deforestation and water pollution.
• Security Concerns: Armed groups control many mining areas, leading to instability and potential human rights abuses.

Future Outlook

The Chadian government is taking steps to address challenges in the gold sector:

• Regulatory Reforms: Implementing policies to formalize the mining sector and improve transparency.
• Infrastructure Development: Investing in infrastructure to support mining activities and exports.
• Capacity Building: Providing training to miners on sustainable and ethical mining practices.

These initiatives aim to enhance the competitiveness of Chad’s gold sector on the global stage.

Conclusion

Purchasing gold from Chad presents opportunities for investors seeking to diversify their portfolios. By understanding the legal frameworks, engaging with reputable suppliers, and conducting thorough due diligence, investors can navigate the complexities of the gold market in Chad. Ethical considerations and awareness of sector challenges are essential for responsible investment in this emerging market.