Mogadishu (Somalia Today) — The Federal Government of Somalia issued a sharp warning on Sunday, instructing all individuals and companies, including foreign firms, to cease all illegal mining activities immediately.
The Ministry of Petroleum and Mineral Resources said that it is monitoring unlawful extraction, which it considers a threat to national security. The government also linked these illicit operations to the funding of terrorism.
In a press release from Mogadishu, the ministry described this activity as a “serious violation of the sovereignty” of Somalia. It said these illicit activities “constitute a serious violation of the sovereignty” of Somalia.
The ministry stressed that only the Federal Government has the authority to issue permits. It applies to all mineral exploration. The ministry cited the Constitution as the legal basis for its warning. It also referred to the “Principle of Permanent Sovereignty over Natural Resources.”
A threat to sovereignty
The statement also pointed to the “Agreement on ownership, management, and revenue-sharing of natural resources.” The agreement is a key part of Somalia’s federal structure. The ministry said all unauthorized parties are violating this national framework.
The government ordered all entities involved to “immediately cease and halt their illegal operations.” It warned that failure to comply would result in consequences.
The ministry “shall take all necessary legal measures” to enforce national laws, the statement said. It concluded by declaring the minerals to be an “asset collectively owned by the people of the Federal Republic of Somalia.”
The government’s strongest claim linked the illegal mining directly to regional instability.
“Illegal mining… is also a source of illicit financial flows that can be used to facilitate terrorism,” the ministry warned. That, it said, threatens “the peace and security of Somalia and the wider Horn of Africa region.”
While the ministry did not name specific groups, the insurgent group Al-Shabaab mostly finances its operations by extorting “taxes” from various illicit and legal businesses.
It happens in areas it controls or influences. Security analysts and UN reports have repeatedly documented this tactic. Cutting off such financial streams is a primary goal for the Somali government and its international partners.
The crackdown also targets regions where unregulated extraction has become industrial in scale. Security sources indicate that the Ministry is focusing on the Puntland region and northern areas, such as Sanaag.
Unconfirmed reports from these areas suggest that “foreign entities” are bypassing federal oversight entirely. Local observers allege that illicit gold and gemstone exports are being flown out via regional airports, evading customs.
Estimates suggest that the value of these “ghost exports” could be double the official regional budgets, representing a massive loss of public revenue that could otherwise be used to fund development.
Untapped national assets
The crackdown comes as Somalia tries to develop its formal economy. The nation has significant mineral deposits, according to reports from the World Bank. These include iron ore, tin, copper, gypsum, and bauxite. There is also potential for rare earth metals and uranium.
For decades, conflict and instability made regulation impossible. That allowed various actors, from local militias to foreign speculators, to exploit resources.
The current government, under the leadership of Minister of Petroleum Dahir Shire Mohamed, has made reforming the sector a priority.
A major challenge for the ministry is the complex relationship between Mogadishu and the Federal Member States. Reaching the resource-sharing agreement mentioned in the warning was a significant political step. However, enforcing it against powerful local and international interests remains difficult.
Federal-State power sharingÂ
Somalia’s federal system was designed to share power between the federal government in Mogadishu and the Federal Member States. It was also meant to calm historic clan and regional tensions.
In practice, the central government has limited authority in many regions, particularly in matters of security and natural resources. That weakness has made it easier for some states and local power brokers to cut side deals or quietly ignore federal directives.
“Asserting federal control over resources is essential for Somalia’s state-building project,” said Ahmed Abdi, a regional political analyst in Mogadishu.
“This warning is as much a message to internal political rivals and Al-Shabaab as it is to foreign companies. It’s a test of the central government’s authority.”
The ministry’s warning is a clear signal that the government intends to protect its sovereignty.
Mogadishu is threatening legal action. It is an attempt to move its mineral wealth from the shadow economy into a regulated system. The success of the move will depend on its ability to enforce the law on the ground.
