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Egyptian companies inject $8.1m investments in gold exploration sector Akh Gold, a subsidiary of Altus Strategies, signed a $4.1m agreement with the Egyptian government to search for gold in nine areas in the Eastern Desert.
Thanks to ongoing reforms in the mining sector and investment climate, in general, several Egyptian companies turned to invest in gold exploration and extraction. Akh Gold, a subsidiary of Altus Strategies, signed a $4.1m agreement with the Egyptian government to search for gold in nine areas in the Eastern Desert. Moreover, the Egyptian Mining and Manufacturing Company – MEDAF signed a similar agreement worth $3m to search for gold in one area. Ebdaa Gold Mine also inked a deal for gold exploration in one area, with $1m investment. The Ministry of Petroleum is keen on providing full support for mining companies to overcome any challenges and obstacles and achieve the best results, according to Minister of Petroleum Tarek El Molla. In April 2021, the Egyptian Mineral Resources Authority signed 15 contracts with seven English, Canadian, and Egyptian companies to search for gold in 30 areas, with investments amounting to $42.2m. The Ministry of Petroleum aims to implement a general plan in the medium and long term. It aimed to achieve a major qualitative leap in the performance of the mining sector by 2030, increasing the sector's contribution to the gross domestic product to 5% instead of 0.5% currently, according to a prominent government official. There are also plans to maximize the economic return from the mining industry and give confidence to investors. It is expected that Egypt will achieve foreign direct investments in the mining sector in the short term at a value of $375m, and that direct investments expected in 2030 will reach $750m. The Mineral Resources Law No. 145 of 2019 was issued after amending some of its provisions. The law aimed to provide and create an attractive investment environment by addressing some challenges and obstacles to the flow of investments. The law approved facilitating investment procedures and research licenses and reducing the time and procedures necessary for that to be done. Research and exploration were separated from the exploitation and production process, so that search and exploration operations are under a direct license from the Minister of Petroleum and Mineral Resources. These procedures led to the speedy completion of the mining investment procedures and their facilitation with the limitation of parliamentary ratification processes and the issuance of a law only when a commercial discovery was made.
