Egypt awards exploration blocks in mining bid round
The government of Egypt 82 exploration blocks to 11 companies in an international bid round aimed at enhancing its mineral exploration sector.
Petroleum Minister Tarek El Molla made the announcement and said notable companies receiving concessions include Australia’s Centamin, and Canadian companies B2Gold, Barrick Gold, Lotus Gold, Red Sea Resources, as well as Britain’s AKH Gold.
Objectives
This bid, initiated in March, spans 14,000 square kilometers with a minimum investment commitment of $60 million for the initial stage of exploration. Minister El Molla emphasized Egypt’s strategic focus on maximizing the mining sector’s contribution to national income.
To attract further investments, the government is enhancing infrastructure, including roads, ports, and airports. Despite Egypt’s ancient history of gold mining, it currently has only one commercial gold mine, Centamin’s Sukari, which significantly contributes around $900 million annually to the GDP.
The recent bid round saw only 29% of the offered blocks being awarded to the winning companies. Egypt aims to secure $1 billion in mining sector investments and has launched a second bid round for gold and mineral exploration, which will be open for four months. Additionally, El Molla announced upcoming bids for various minerals in 2021, including gold, iron, phosphate, white sand, zinc, and potassium salt, in areas such as near Nasser Lake.
