{"id":1838,"date":"2025-10-17T08:36:10","date_gmt":"2025-10-17T08:36:10","guid":{"rendered":"https:\/\/sahanpost.com\/en\/?p=1838"},"modified":"2025-10-18T17:46:24","modified_gmt":"2025-10-18T17:46:24","slug":"the-hidden-gold-rush-how-power-conflict-and-foreign-interests-shape-the-mineral-exploitation-of-sanaag","status":"publish","type":"post","link":"https:\/\/sahanpost.com\/en\/the-hidden-gold-rush-how-power-conflict-and-foreign-interests-shape-the-mineral-exploitation-of-sanaag\/","title":{"rendered":"The Hidden Gold Rush: How Power, Conflict, and Foreign Interests Shape the Mineral Exploitation of Sanaag"},"content":{"rendered":"<h5><strong><em>An Investigative Report by SahanPost<\/em><\/strong><\/h5>\n<h5><strong><em>October 2025<\/em><\/strong><\/h5>\n<h3><strong>Introduction<\/strong><\/h3>\n<p>Sanaag, the second-largest region of Somalia, lies along the country\u2019s northeastern frontier bordering the Red Sea. Long known for its rugged mountains and coastal riches, Sanaag is believed to be among the most resource-rich areas in Somalia, endowed with abundant marine, agricultural, and mineral resources.<\/p>\n<p>Over the past decade, the region has witnessed a surge in artisanal gold mining. What began as small, local discoveries has now evolved into an unregulated gold rush \u2014 one that intertwines poverty, politics, and power, and increasingly attracts both local and international actors.<\/p>\n<p>This investigation by <strong>SahanPost<\/strong> explores the gold reserves of Sanaag, the growing involvement of regional authorities and foreign interests, and the human and environmental consequences of this expanding extraction economy.<\/p>\n<figure id=\"attachment_1839\" aria-describedby=\"caption-attachment-1839\" style=\"width: 682px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1839 size-large\" src=\"https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/GOLD-682x1024.jpg\" alt=\"\" width=\"682\" height=\"1024\" srcset=\"https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/GOLD-682x1024.jpg 682w, https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/GOLD-200x300.jpg 200w, https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/GOLD-768x1152.jpg 768w, https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/GOLD-1024x1536.jpg 1024w, https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/GOLD.jpg 1333w\" sizes=\"auto, (max-width: 682px) 100vw, 682px\" \/><figcaption id=\"caption-attachment-1839\" class=\"wp-caption-text\">Sites of Gold exploitation of Sanaag is said to be are more than 20 sites, but these are the main once.<\/figcaption><\/figure>\n<h3><strong>The Gold Belt of Sanaag<\/strong><\/h3>\n<p>Sanaag is widely believed to hold Somalia\u2019s largest deposits of gold, gypsum, salt, tin, iron, and even uranium. The Cal-Madow and Golis Mountains \u2014 stretching from the interior highlands to the Red Sea coast, form the heart of what many now call Somalia\u2019s \u201cnew gold belt.\u201d<\/p>\n<p>In 2016, residents of Shidan and Cirshiido discovered gold nuggets that sparked what became known as the <em>Sanaag gold rush<\/em>. With little equipment and almost no technical expertise, locals began mining using traditional methods. Within months, new settlements formed around gold-bearing areas as thousands arrived seeking fortune.<\/p>\n<p>The main extraction sites,\u00a0Milxo, Shidan, Cirshiima, Xaysimo, and Wadaagsan,\u00a0\u00a0now form a corridor of intense artisanal mining stretching across the mountains and coastal plains.<\/p>\n<h3><strong>Conflict Beneath the Mountains<\/strong><\/h3>\n<p>The discovery of gold in Sanaag has done more than boost the local economy, it has reignited long-standing clan rivalries, turning mining towns into flashpoints of violence. In 2019, tensions between the Noh Omar and Muse Ismail clans erupted into a violent clash in Shidan, a mining hub roughly 30 kilometers from Lasqoray District. The fight, driven by disputes over mining territories and control of resources, underscored the fragile balance of power in the region.<\/p>\n<p>Eyewitnesses and reports suggest that Somaliland\u2019s Marine Corps intervened in the conflict, reportedly aligning with one of the clans. Around the same time, authorities in Ceerigaabo arrested two key clan leaders from Shidan \u2014 Ibrahim Mohamed Hassan, known locally as <em>Gacmayare<\/em>, and Said Mohamud Said <i>Bidaar<\/i>.<\/p>\n<p>The Shidan confrontation is a stark illustration of how, in the absence of formal regulation, mineral wealth can quickly become a flashpoint for instability, fueling both local tensions and broader insecurity.<\/p>\n<h3><strong>Unregulated Mining and Environmental Ruin<\/strong><\/h3>\n<p>Since 2016, Sanaag\u2019s mining activities have expanded dramatically. Locals exploit both primary (lode) deposits,- such as orogenic and epithermal veins \u2014 and secondary (placer) deposits formed by erosion of gold-bearing ore.<\/p>\n<p>However, the mining process has inflicted severe damage on the local environment. Hillsides are carved open, water tables are disturbed, and entire valleys have been reshaped by human hands. With no environmental oversight, these lands face irreversible degradation.<\/p>\n<p>Most mining tools are locally made or improvised. The lack of training and safety standards has led to frequent accidents and enormous death, while deforestation and pollution continue unchecked.<\/p>\n<p>Significant quantities of chemical waste are being discharged into the land, seeping into water sources and causing severe environmental degradation.<\/p>\n<p>\u201cHighly toxic chemicals are widely used in the production and processing of gold. Unfortunately, there is little regard for environmental protection, these substances are often dumped directly into the soil, leading to extensive land contamination,\u201d said a local resident of Milxo Hassan Adan.<\/p>\n<p>The Federal Government of Somalia currently exerts little or zero influence over the country\u2019s mining sector. The primary legal framework governing mineral resources was Somalia\u2019s Mining Law of 1984, supplemented by the Law on Natural Resources. In 2020, the Petroleum Law was introduced; however, no dedicated government bodies have been formally assigned to oversee or regulate the mining sector. As a result, the industry operates with minimal official oversight.<\/p>\n<h3><strong>A Growing but Unequal Gold Economy<\/strong><\/h3>\n<p>The price of gold has risen steadily- from USD 25 per gram in 2016 to around USD 80 per gram today, yet the wealth generated rarely benefits local communities.<\/p>\n<p>In towns like Cirshiido, small local groups have taken it upon themselves to maintain order and regulate mining activities, albeit on a limited scale. Cirshiido, politically connected to former Somaliland President and local MP Abdikarim Meecaad, recently opened a gold processing facility, promising new employment opportunities for young people.<\/p>\n<p>But just a few hundred kilometers away, Milxo, a small town with about 5000-7000 people, 60 kms to Lasqoray, Sanaag&#8217;s largest gold-producing site, operates entirely outside formal regulation. While official production figures are unavailable, sources told SahanPost that Milxo\u2019s output could exceed USD 4-5 million per month. The site has earned a reputation as a \u201cno man\u2019s land,\u201d attracting thousands of miners from across Somalia and even the neighbouring countries like Oromo\u00a0people, of Ethiopia, some Chinese men, Indian and Pakistani as well as South Africans and Europeans were seen occasionally in Milxo..<\/p>\n<p>\u201cEvery piece of land traditionally belongs to a specific clan, in Somalia, but Milxo belongs to everyone. No one enforces ownership, and it is being exploited by people from all over,\u201d said local resident Said Ahmed.<\/p>\n<p>The scramble for land has intensified as large companies move in, acquiring thousands of hectares and driving up prices. \u201cThe land is extremely expensive. In some areas, you may have to pay thousands of dollars just to obtain a small plot,\u201d Ahmed added.<\/p>\n<p>Despite its enormous output, Milxo lacks basic infrastructure. There are no healthcare services, no electricity, and no running water, making it one of the most expensive and precarious towns in the region. In this lawless gold rush, wealth and danger exist side by side, highlighting the perils of unregulated mineral exploitation.<\/p>\n<figure id=\"attachment_1840\" aria-describedby=\"caption-attachment-1840\" style=\"width: 720px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-1840\" src=\"https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/image0.jpeg\" alt=\"\" width=\"720\" height=\"960\" srcset=\"https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/image0.jpeg 720w, https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/image0-225x300.jpeg 225w\" sizes=\"auto, (max-width: 720px) 100vw, 720px\" \/><figcaption id=\"caption-attachment-1840\" class=\"wp-caption-text\">Gold nugget, Milxo\u00a0 Oct-2025<\/figcaption><\/figure>\n<h3><strong>New Revelations: The Foreign Connection<\/strong><\/h3>\n<p>SahanPost has recently obtained documents indicating that the Puntland Government and the United Arab Emirates (UAE) have conducted seismic and geological studies across parts of Sanaag, &#8220;Cal-Madow mountains&#8220;. The documents suggest an interest in assessing the scale of gold and other mineral reserves, and potentially securing future extraction rights.<\/p>\n<p>According to the information reviewed by SahanPost, these studies appear linked to Dubai-based commercial interests seeking to expand their footprint in Somalia\u2019s untapped mineral sector.<\/p>\n<p>The survey proposal in question, titled <em>\u201cSurvey Proposal for Euro Mark Group for Development Company LLC\u201d<\/em>\u00a0, was prepared by the Australian-based company GeoResonance Pty Ltd. The plan covers more than 1,000 square kilometers across Somalia\u2019s Puntland, particularly in the Calmadow area of the Sanaag region.<\/p>\n<p>The document outlines an ambitious initiative to identify eight strategic minerals,\u00a0gold, tin, lithium, copper, platinum, titanium, tantalite, and uranium,\u00a0using what GeoResonance describes as \u201cquantum-based remote sensing methods.\u201d The proposal\u2019s scale and technology claims have drawn attention for their boldness and the significant foreign interest it represents in the region\u2019s mineral wealth.<\/p>\n<p>Sources also revealed that several businessmen from Sanaag\u2019s local clans have aligned with the Puntland administration to support the deployment of around 2000 security forces in mining zones and Calmadow, under the stated goal of maintaining peace and stability for the future productions of gold. For their safety, SahanPost has chosen not to disclose the names of these businessmen and Companies involved.<\/p>\n<p>Meanwhile, Al-Shabaab maintains a limited but concerning presence in parts of Sanaag, particularly around Milxo. Individuals who spoke to SahanPost anonymously alleged that the group may have direct and indirect links to the local gold trade, raising fears that profits from mining could be financing militant activity.<\/p>\n<h3><strong>The Route of Gold. From Mountains to Dubai<\/strong><\/h3>\n<p>Most gold extracted in Sanaag is sold to local intermediaries who supply miners with equipment, fuel, or food in exchange for future deliveries of gold.<\/p>\n<p>Gold from Cirshiido and western Sanaag is transported overland to Hargeisa and Berbera, where it is then shipped by air or sea to Dubai. Gold from Shidan and Milxo is routed through Bosaso, another key export hub, before reaching Dubai.<\/p>\n<p>Once in Dubai, questions of origin, licensing, and ethical sourcing largely fade. The emirate\u2019s gold market prioritizes low-cost supply, and according to investigations by <em>The Times<\/em>, has long served as a global entry point for African gold, including that sourced from conflict zones.<\/p>\n<p>Sanaag\u2019s gold rush has created new opportunities for wealth, but also deepened old divisions and invited new forms of exploitation. What began as a local search for prosperity has drawn in regional governments, foreign investors, and even militant actors, all competing for a share of the region\u2019s mineral fortune.<\/p>\n<h3><strong>Who Truly Benefiting From Sanaag\u00b4s Gold?<\/strong><\/h3>\n<p>The absence of governance, environmental protection, and transparent regulation has left both people and land vulnerable. As evidence emerges of foreign-led geological surveys, Dubai-linked commercial interests, and growing regional militarization, the question remains: <strong>Who truly benefits from Sanaag\u2019s gold?<\/strong><\/p>\n<p>Without urgent reforms, the region risks losing not only its resources but its stability, leaving behind a legacy of environmental destruction and social fragmentation.<\/p>\n<p>&nbsp;<\/p>\n<figure id=\"attachment_1846\" aria-describedby=\"caption-attachment-1846\" style=\"width: 1024px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1846 size-large\" src=\"https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/image5888-1024x705.jpg\" alt=\"\" width=\"1024\" height=\"705\" srcset=\"https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/image5888-1024x705.jpg 1024w, https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/image5888-300x207.jpg 300w, https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/image5888-768x529.jpg 768w, https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/image5888-1536x1058.jpg 1536w, https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/image5888.jpg 2047w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-1846\" class=\"wp-caption-text\">Milxo, at night. Miners, laborers, and gold diggers carry out their work under the cover of darkness.<\/figcaption><\/figure>\n<figure id=\"attachment_1850\" aria-describedby=\"caption-attachment-1850\" style=\"width: 1025px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1850\" src=\"https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/image1.jpeg\" alt=\"\" width=\"1025\" height=\"1287\" srcset=\"https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/image1.jpeg 720w, https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/image1-239x300.jpeg 239w\" sizes=\"auto, (max-width: 1025px) 100vw, 1025px\" \/><figcaption id=\"caption-attachment-1850\" class=\"wp-caption-text\">In the search for gold, miners dig holes as deep as 20 to 50 meters, causing significant environmental degradation and long-term damage to the surrounding ecosystem.<\/figcaption><\/figure>\n<figure id=\"attachment_1833\" aria-describedby=\"caption-attachment-1833\" style=\"width: 1024px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-1833\" src=\"https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/Milxo.jpg\" alt=\"\" width=\"1024\" height=\"1024\" srcset=\"https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/Milxo.jpg 624w, https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/Milxo-300x300.jpg 300w, https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/Milxo-150x150.jpg 150w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-1833\" class=\"wp-caption-text\">Environmental degradation caused by the digging of holes in search of gold is severely damaging the ecosystem.<\/figcaption><\/figure>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-1845\" src=\"https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/image4-1024x532.jpeg\" alt=\"\" width=\"1024\" height=\"532\" srcset=\"https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/image4-1024x532.jpeg 1024w, https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/image4-300x156.jpeg 300w, https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/image4-768x399.jpeg 768w, https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/image4.jpeg 1279w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-1830\" src=\"https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/2025-10-16-17-1024x873.png\" alt=\"\" width=\"1024\" height=\"873\" srcset=\"https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/2025-10-16-17-1024x873.png 1024w, https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/2025-10-16-17-300x256.png 300w, https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/2025-10-16-17-768x655.png 768w, https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/2025-10-16-17.png 1109w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<figure id=\"attachment_1842\" aria-describedby=\"caption-attachment-1842\" style=\"width: 1024px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"size-large wp-image-1842\" src=\"https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/532914008_1096306196022760_3071404486360952763_n-1024x683.jpg\" alt=\"\" width=\"1024\" height=\"683\" srcset=\"https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/532914008_1096306196022760_3071404486360952763_n-1024x683.jpg 1024w, https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/532914008_1096306196022760_3071404486360952763_n-300x200.jpg 300w, https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/532914008_1096306196022760_3071404486360952763_n-768x512.jpg 768w, https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/532914008_1096306196022760_3071404486360952763_n-1536x1024.jpg 1536w, https:\/\/sahanpost.com\/en\/wp-content\/uploads\/sites\/2\/2025\/10\/532914008_1096306196022760_3071404486360952763_n.jpg 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-1842\" class=\"wp-caption-text\">Opening Ceremony of Cirshiida Gold Minning Factory<\/figcaption><\/figure>\n<hr \/>\n<p><strong>\u00a9 2025 SahanPost Investigations<\/strong><br \/>\n<em>All rights reserved. This report may not be reproduced without permission.<\/em><\/p>\n<p><em>Contact us: info@sahanpost.com<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>An Investigative Report by SahanPost October 2025 Introduction Sanaag, the second-largest region of Somalia, lies along the country\u2019s northeastern frontier bordering the Red Sea. Long known for its rugged mountains&hellip; <\/p>\n","protected":false},"author":3,"featured_media":1844,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[41,14,13],"tags":[],"class_list":["post-1838","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-editors-pick","category-editorial","category-investigation"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>The Hidden Gold Rush: How Power, Conflict, and Foreign Interests Shape the Mineral Exploitation of Sanaag | SahanPost - English<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/sahanpost.com\/en\/the-hidden-gold-rush-how-power-conflict-and-foreign-interests-shape-the-mineral-exploitation-of-sanaag\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Hidden Gold Rush: How Power, Conflict, and Foreign Interests Shape the Mineral Exploitation of Sanaag | SahanPost - English\" \/>\n<meta property=\"og:description\" content=\"An Investigative Report by SahanPost October 2025 Introduction Sanaag, the second-largest region of Somalia, lies along the country\u2019s northeastern frontier bordering the Red Sea. 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