Mining Roundtable Discussion

Entitled “Mining & Exploring the Egyptian Nubian Shield”, this roundtable discussion shed light on the latest achievements of the mining sector in Egypt besides discussing the enablers to accelerate the sector’s development and the potential opportunities presented for collaboration with the UK side to help the country achieve its vision.

Hosted by Centamin, Minister Molla highlighted that Egypt’s strategic location and infrastructure makes it well positioned to have a prosperous mining sector, with the Ministry of Petroleum exerting some major efforts introducing better jurisdictions and launching tenders that attract companies specialized in mining. Moreover, as part of the reform, the Ministry has submitted a regulatory amendment proposal to the Parliament with the aim of transforming Egyptian Mineral Resources Authority (EMRA) to become an economic corporation rather than a public sector entity, with the President blessing such a proposal.

With the Arabian Nubian Shield being one of the top geological places that would feature mineral deposits, Egypt becomes the right place to explore for such mining potential where the right geological criteria to invest in the mining sector exists. In addition, the huge geological exposures in the Nubian Shields makes easier to explore and accordingly does not pose a huge exploration expense provided that the right tools are available. The panelists narrowed down some challenges that face the mining sector in Egypt including the ample quantity of available gold, the existence of many small artisanal miners that mine everywhere specially with the abundance of gold deposits, the governments’ general method of trying to micromanage mining operations, the imposition of local requirements mandates whether in tools or contractors. Furthermore, the panelists listed amongst the characteristics that mining investors look for are the ongoing regime, the enforceability of arbitration regimes, the maintenance of transparency, the reduction of associated risks by securing general stability, ensuring the enforcement of the agreements, ensuring the availability of sufficient information, in addition to others.

The mining sector in Egypt was contributing by less than 0.5% of the GDP in 2021, given that there was only one operational gold mine, the Sukari Mine. Accordingly, the Ministry worked on introducing an organizational strategy with an international consultant in order to pinpoint the challenges facing the sector. Amongst the listed challenges were the mining regulations that were not luring in investors, thereby leading the Ministry of Petroleum and Mineral Resources to change the Mining Code from applying a production chain to the most known and successful OND tax, in addition to adjusting licensing regulations and ensuring sufficient data availability. As mining companies showed interest in the sector, the Ministry now plans to have the sector contribute by 5% of the GDP by 2030 (for all minerals besides gold). To tackle the lack of added value and how the companies could benefit, the Ministry also initiated some industrialization shifts and ensured the country’s active presence in mining forums besides conducting local workshops and launching its very own Mining Forum, with the 2nd edition of Egypt’s Mining Forum set to be held next month. With its solid infrastructure, skilled labor, and abundant energy resources, Egypt mining potential further grows specially given that few communities live on mining lands, which ultimately acts as a privilege to the mining companies as no relocation would be needed.

Moderated by Judith Mosely, Non-Executive Director of Blackrock World Mining Trust, Eldorado Gold Corp, and Galiano Gold Inc, this session featured the following panelists:

• HE Tarek El Molla, Minister of Petroleum and Mineral Resources

• Martin Horgan, CEO, Centamin

• Jon Perry, Partner, Norton Rose Fulbright,

• Patrick Barnes, Director of Metals & Mining EMEA, Wood Mackenzie

• Nathan Komarnisky, Head of Exploration in Africa & Middle East, Barrick

Thursday June 15, 2023

Hosted by EBCC