Egypt Announces New Gold Discovery in Eastern Desert

Tarek El-Molla, Minister of Petroleum and Mineral Resources announced a new gold discovery in the Iqat region in the Eastern Desert of Egypt, with a reserve estimated at more than a million ounces, with a minimum recovery rate of 95%, which is considered one of the highest extraction rates, and with a total investment of $1 billion over the next ten years.

It is noteworthy that the new discovery is located in the concession area of ​​the Shalateen Mineral Resources Company, while the Egyptian Company For Mineral Resources undertakes exploration services in the region in accordance with its contract with the concerned Company.

The new gold discovery came as part of the Egyptian investments in mineral resources exploration through the Egyptian Shalateen Company, which is witnessing a successful partnership with a number of state sectors, including the Egyptian Mineral Resources Authority (EMRA), the National Service Projects Organization (NSPO), the National Investment Bank (NIB) and the Egyptian Company for Mining Resources.

Meantime, a new company will be formed between both Shalateen and the EMRA to carry out operations in the detection area once the procedures are completed, to be the third company in Egypt to extract gold and accompanying minerals, following the Sukari Gold Mines and the Hammash Misr Gold Mines.

He added that the closing date for the first bid for gold in 2020 has been extended and is the first bid in accordance with the new amendments that were launched last March as a result of the global pandemic conditions to  Sep. 15 instead of July 15 with the implementation of a global system for evaluating the submitted offers, taking into account all international requirements to attract more investments.

The new discovery coincides with the program of the Ministry of Petroleum and Mineral Resources to develop and modernize the mining sector to increase its contribution to the Gross Domestic Product (GDP).

El-Mulla affirmed the continuation of the implementation of the ongoing program to develop and modernize the mining sector in its second stage, which the ministry is implementing since the start of its first stage In the year 2018 to the end of the year 2021 with the aim of increasing the investment attractiveness of the mining sector in a way that maximizes opportunities available to raise the economic returns achieved from this vital sector and increase the value from the utilization of mineral ores.

The ongoing reforms in all aspects of the mining industry, in accordance with the implemented program, is intended to attract foreign direct investments (FDI) within two years estimated at about $375 million, and to increase the expected direct investments in 2030 from $700 million to $1 billion.

The minister pointed out that legislative reforms are a main focus of the development program, which culminated in the issuance of the Mineral Resources Law No. 145 of 2019, after amending some of its provisions.

The new amendments issued positive executive regulations for the Mineral Resources Authority, and issued new models for research agreements in line with globally applicable regulations to attract investment to mining activity and taking into account the interest of the state in this field.