On June 30, 2020, the Ministry of Petroleum and Mineral Resources of Egypt revealed the discovery of a gold mine with an estimated resource of 1 million ounces and a value of approximately $1.8 billion at current prices.

It is reported that the asset was discovered in the mineral-rich eastern desert of the mining concession operated by the state-owned Shalateen Mining Company. It is expected that there will be more than one billion US dollars of investment and development of the deposit in the next ten years.

The deposit is part of a mining concession operated by the state-owned SHALATEEN Mining Company, and Shalateen and the National Regulatory Authority of the Egyptian Mineral Resources Authority will form a new company to develop the deposit.

Egypt has been trying to attract foreign investors into the mining industry through new regulations and has set a goal of attracting $375 million over the next two years. By 2030, direct investment is expected to increase from US$700 million to US$1 billion.

Attract investors

Recently, Cairo began auctioning 56,000 square kilometers of exploration concessions in the eastern desert.

Due to delays caused by the coronavirus pandemic, the company recently extended the initial July deadline for auctions to September 15 and expanded the opportunity to more potential bidders.

Unlike Egypt’s natural gas sector, the country’s mineral resources are still largely untapped and mined because of Egypt’s past royalty system and profit-sharing agreements. They make it difficult and unprofitable for miners to explore and mine minerals.

The new regulations introduced in 2020 eliminate the need for miners to form a joint venture with the Egyptian government and limit the national royalties to a maximum of 20%. Editor/Tian Zengpeng