AFP reported that Sudan and Saudi Arabia are targeting 2014 start for deep water mining of a Red Sea basin believed rich in gold and copper.

Mr Ali al Naimi Saudi Minister of Petroleum and Mineral Resources said that Manafa International Trade Company of Saudi Arabia and its JV partner Diamond Fields International Limited of Canada received a licence in 2010 to explore the area about 115 kilometers west of Jeddah. It is already started and it's underway.

Mr Kamal Abdel Latif mining minister of Sudan said that "We are expecting starting production maybe 2014. Reserves are very huge at 150 tonnes of gold and more than one million tonnes of copper. However, Diamond Fields has reported estimated copper reserves at less than half that amount. Diamond Fields said last month that it is scheduled to meet in December with third parties to discuss possible financing options for the Red Sea project.”

Sudan and Saudi Arabia signed an agreement in 1974 to exploit the Red Sea's resources. Sudan is trying to boost exports of gold and other non-petroleum products after the separation of South Sudan last year left Khartoum without Q3 of its crude production. As a result, inflation has soared above 40% and the currency has plunged in value after Sudan lost most of its international payments capacity and half its fiscal revenues.

Mr Latif said that traditional land based mining in Sudan has this year produced 41 tonnes of gold worth USD 2.5 billion with another 50 tonnes targeted next year. Sudan should aim to refocus the economy on its non resource sector estimating the country's gross domestic product for this year at about 191 billion Sudanese pounds. That is around USD 31 billion at black market rates.