In January 2020, Egypt unveiled mining regulations modifying production sharing agreements into a system of rent, royalties and taxes and removing the requirement to form joint ventures with the state before operating any mines. Since then, investors have flocked.
In Egypt, the mining sector is expected to experience rapid growth between 2021 and 2025, driven by reforms undertaken by the government. This is what a report by British research firm Oxford Business Group reveals. Published on August 25 and relayed by Mining Weekly, it indicates that the contribution of Mines to GDP will reach 5% in 2025, against around 0.5% this year.
This 900% increase will be driven by the start of production of new mines, mainly gold. In recent months, the Egyptian government has in fact awarded several gold exploration blocks to mining companies, with the intention of seeing them rapidly develop these projects.
From the giant Barrick Gold to the junior Lotus Gold, including Centamin already installed in the country for several years, these companies are attracted by the relaxation of the local mining regulations.
According to available data, Egypt hosts 6.7 million ounces of gold reserves, 50 million tonnes of coal and the world’s fourth largest tantalite reserve with 48 million tonnes. With the return of investors, the country may become in a few years one of the largest mining countries in Africa.