CAIRO: Oil Minister Tarek El Molla is on the record as saying he wants to increase mining’s contribution to GDP tenfold by 2026, and in order to achieve this the ministry is to aid the sector’s transformation into a lucrative investment spot.
Part of the plan kicks off in March, with Egypt hosting a virtual global mining show bringing together international mining corporations, investors, solution providers and governments — all to help seal long-term strategic partnerships and tap potential opportunities in the sector.
There is much to develop. Egypt is home to several mineral resources, including raw materials, metals, precious metals, or nonmetals. The mineral resources are dispersed across the country with the bulk concentrated in the Eastern Desert and the Sinai Peninsula.
With an average of 48 million tons of tantalite, 50 million tons of coal, and 6.7 million ounces of gold, Egypt has the potential to be one of the top mining locations in the world. The main producers in the country include Egypt Ministry of Petroleum, National Service Projects Organization, Egyptian Mineral Resources Authority (EMRA), Al Wadi Al Gadid for mineral resources & oil shale, Shalateen Mining Company, Hammash Misr for Gold Mines, Phosphate Misr Company, and Egyptian Black Sand company.
With external aid from indepen- dent consultants such as UK’s Wood Mackenzie in 2018, the Egyptian government was able to set policies to lure global investments.
In 2020, the government intro- duced a new regulation shifting the system from production sharing agreements to its rent, royalty and tax systems.
The new system which tackles industry concerns while offering sector and investor-friendly terms and conditions attracted global investors and aided Egypt into becoming a captivating investment spot.
Snapshot of milestones and ongoing projects:
- Egypt has recorded $550 million profits from Sukari Gold Mine located in the Eastern Desert over the past 10 years.
- This comes as a result of a collab- oration that dates back to 1994 between Australian gold mining
company Centamin and the Mineral Wealth Authority.
- Under the terms of the agree- ment, the Australian company finances the project, paying the authority 55 percent of profits and 3 percent of revenues respectively in the process.
- 75 percent of the country’s mining minerals are attributed to a metallic and nonmetallic mineral