Egypt is aiming to boost the attractiveness of its mining sector to global investors, including Australians.
Speaking on Petrocast, the podcast of Egypt’s Ministry of Petroleum and Mineral Resources, several Australian company leaders said Egypt is becoming more appealing due to its untapped potential and sector reforms.
The country is reportedly targeting a 5 to 6 percent contribution to GDP by 2030 for the mining industry.
“The opportunity to grow and expand exploration across the country, in both the eastern and western desert, is significant,” Egypt Oil & Gas Group quotes Doug Horak, CEO of Australia-Africa Minerals & Energy Group, as saying.
The executive also pointed to improving infrastructure, including the country’s construction of a 60 megawatt solar plant, 30 megawatts of which are currently operational.
“Part of Sukari’s power plan going forward is integrating not only with the grid but also with the renewable sector,” Horak added. Sukari is a gold mine partially owned by AngloGold Ashanti.
As mentioned, AngloGold Ashanti is a key player in Egypt’s mining industry, with a 50 percent stake in the Sukari gold mine. The Egyptian Mineral Resource Authority holds the remaining 50 percent. Sukari’s mineral reserves attributable to AngloGold stand at 2.41 million ounces.
In September, Nex Metals Explorations announced that it had entered Egypt by becoming the operator of North Hennai, a gold mine located in the country’s Eastern Desert.
In addition, Egypt Oil & Gas Group reported on November 27 that Badawi met with executives from three Australian firms on a visit to the country: Capital Drilling, Hunter and Bell Potter.
Capital Drilling reportedly expressed interest in expanding its mining-drilling operations in Egypt, including phosphate and gold exploration in the Southern Eastern Desert.
Egypt is set to launch a digital mining portal in the future, according to Badawi.
The platform will offer investors access to geological data, licence information and available investment areas.
Besides these updates, Karim Badawi, Egypt’s minister of petroleum and mineral resources, recently announced a new incentive package aimed at attracting emerging and medium-sized Australian mining companies.
The package includes reforms such as the reduction of annual fees to make early stage exploration more viable.
Tax and customs exemptions for equipment, supplies and related services are also included, with the main goal being to position Egypt as one of the leading mining destinations in Africa and the Middle East.