Centamin unveils new Egyptian mining regulatory framework
Centamin, an established gold producer with operations in Egypt, has reached an agreement in principle with the Egyptian Ministry of Petroleum & Natural Resources (MoP) and the Egyptian Mineral Resources Authority (EMRA) on the framework for the model mining exploitation agreement (MMEA).
The MMEA sets out the legal and fiscal framework that will govern commercial discoveries made on approximately 3,000 square kilometers of ground awarded to Centamin in 2021 for exploration in the Eastern Desert of Egypt (EDX blocks).
MMEA terms
The MMEA terms include a 30-year stabilised fiscal and legal regime for exploitation licenses, which will become effective once the Egyptian parliamentary approval is granted and legally ratified. Centamin will pay the government a 5% royalty on the revenue generated from mining activities. And the firm will be subject to a corporate tax rate of 22.5% on its profits. The government will receive a 15% share of Centamin’s net profits after tax. Centamin will contribute 0.5% of its revenue to support local community development.
Life of mine commitments towards local employment, training, and procurement: Centamin commits to providing employment opportunities, training programs, and procuring goods and services locally during the mine’s operational life.
The terms of the MMEA align with modern international mining codes, making Egypt an attractive destination for mining investment. It aims to strike a balance between risk and reward for all stakeholders while providing a stable operating environment for international mining companies and investors.
Centamin expressed its commitment to supporting Egypt’s vision of creating a thriving mining industry that contributes to the country’s economic growth and development. The company believes that mining can fulfill its potential in Egypt by creating jobs, offering educational and training opportunities, and investing in the country’s infrastructure.
The MMEA does not apply to the Sukari Gold Mine, which operates independently under a separate concession agreement ratified by parliament under Egyptian Law No. 222 of 1994. As a responsible corporate citizen, Centamin aims to deliver operational and financial performance while benefiting all stakeholders. The company has achieved various milestones in safety, sustainability, and supporting the local workforce and supply chain. MMEA is still subject to routine Egyptian government and legal procedures and will be ratified as a Special Law by the Arab Republic of Egypt in late 2023.
