GAROWE, Puntland – The government of Puntland, a semi-autonomous state in Somalia, in partnership with the Dubai Port Authority (DP World), has invited international companies to bid for gold and copper exploration rights in a move that promises economic growth but risks inflaming deep-seated territorial disputes.
The invitation, dated July 11, 2025, seeks bids for exploration and development in the Calmadow mountain range, specifically the Dhootine area of the Sanaag region. The initiative, spearheaded by Puntland’s Ministry of Natural Resources & Energy and the Free Zone Division of the Dubai Port Authority, aims to “foster sustainable economic growth through responsible mining partnerships.”
However, the Sanaag region is a volatile and long-disputed territory, claimed by both Puntland, its western neighbor, Somaliland and newly established administration of SSC-Khaatumo. This decades-old dispute, rooted in colonial-era boundaries versus clan-based allegiances, casts a significant shadow over the ambitious project, posing considerable political and security risks for potential investors.
A lucrative offer in disputed land
The “Invitation for Bids” document outlines a series of advantages for successful bidders, including “preferential tax incentives” through Dubai’s Free Zone policies and “streamlined export logistics” managed by the Dubai Port Authority. The deal is framed under Puntland’s Mineral Resources Act and promises a “comprehensive investor protection framework.”
The partnership leverages the logistical might of state-owned UAE giant DP World, which already operates the Port of Bosaso in Puntland under a 30-year concession signed in 2017. The project highlights joint oversight by the Puntland government and the Dubai Port Authority, suggesting a tightly integrated commercial and political arrangement.
Crucially, the invitation claims to have “strong local leadership endorsement, including Sultan Sald.” This is likely a reference to Sultan Said of the Warsangeli, one of the most influential traditional leaders in the Sanaag region. The endorsement of the local clan is considered essential for the viability and security of any major project in the area.
The announcement comes at a time of heightened political tension in Somalia. In April 2024, Puntland’s government, led by President Said Abdullahi Deni, announced it would operate as an independent state, citing constitutional disputes with the Federal Government of Somalia in Mogadishu.
The status of Sanaag is a core point of contention. Somaliland claims the territory based on the borders of the former British Somaliland protectorate. Puntland, however, bases its claim on the kinship ties of the local Harti clan, which includes the Warsangeli, to the dominant clan family in Puntland.
A volatile political backdrop
The situation is further complicated by the emergence of the SSC-Khatumo administration, which declared its autonomy from Somaliland in 2023 after a prolonged conflict and also has interests in the region. Puntland’s President Deni has recently issued sharp warnings against what he terms “political meddling” by both the federal government and SSC-Khatumo in the Sanaag region.
The Calmadow mountain range is a rugged and biodiverse area known for its unique flora and fauna. For decades, there have been reports of significant, unexploited mineral deposits. The explicit targeting of gold and copper confirms long-standing speculation about the region’s potential wealth.
While the economic allure is strong, any mining operation faces substantial hurdles. Beyond the political disputes, security remains a paramount concern. The al-Shabaab extremist group, though weakened, maintains a presence in parts of Puntland and has previously targeted foreign interests, including a 2019 attack that killed the manager of the DP World-run port in Bosaso.
Foreign investment in Somalia remains a high-risk, high-reward venture. While the nation has made strides toward economic stability, challenges including weak governance, security threats, and political infighting continue to deter many international firms. This new mining venture in a contested territory will serve as a critical test of investor appetite and Puntland’s ability to guarantee stability in its pursuit of economic development.