Egypt to reform mining sector
Egypt has announced a commitment to a comprehensive approach to reforming the mining sector. Prime Minister Mostafa Madbouly revealed the plans during a field visit to the Sukari Gold Mine (SGM) in Marsa Alam, accompanied by Petroleum and Mineral Resources Minister Karim Badawi, AngloGold Ashanti executives, geologists, and members of Parliament.
The visit was part of the government’s broader strategy to follow up on ongoing mining operations and explore future expansion and investment prospects in Egypt’s growing mining sector. Madbouly highlighted there is a collaboration with Parliament to modernize legislative, financial, and investment frameworks in line with international best practices. He stressed that these reforms are central to attracting global investments and enhancing the sector’s contribution to Egypt’s GDP.
He noted that Egypt has finalized several agreements with major global companies to enhance gold and mineral extraction models, creating substantial investment opportunities. As part of the site visit, the Prime Minister inspected underground mining operations and toured the mine’s solar power plant, which supplies over 20% of the mine’s energy needs. The plant, with a capacity of 36 megawatts (MW), reduces fuel consumption by approximately 22 million liters annually and cuts carbon emissions by around 60,000 tons per year. Plans are underway to expand this capacity to 45 MW and connect it to the national power grid.
Growth strategy
Alberto Calderon, CEO of AngloGold Ashanti, which holds a 50% stake in SGM, reaffirmed the company’s intent to increase investment in the mine. He emphasized Egypt’s potential as a promising destination for gold exploration, citing previous exploration successes and ongoing activities in neighboring areas.
Minister Karim Badawi reiterated the government’s focus on creating a favorable environment for mining investments. He pointed out that transforming the Egyptian Mineral Resources Authority into an economically driven entity is key to enhancing operational efficiency and attracting foreign investors.
Badawi also praised the Sukari mine as a leading example of successful mining in Egypt, operated by a skilled Egyptian workforce in partnership with AngloGold Ashanti, the world’s fourth-largest gold producer.
Recent geological surveys suggest that the gold reserves at Sukari may surpass initial estimates. Madbouly disclosed that total investments in the mine over the past ten years have exceeded $2 billion, with mining equipment alone valued at $235 million. He addressed public concerns about Egypt’s share of the mine’s profits, especially following AngloGold Ashanti’s acquisition of Centamin, the Canadian company previously managing SGM. He assured that the new investments have led to an increase in production, stating that the projected output over the next eight years will surpass the total yield of the past fifteen years.
Covering an area the size of a small city, the Sukari project provides approximately 4,000 direct and indirect job opportunities. Madbouly emphasized that Egypt views this as a strategic model for future mining developments. After his inspection, the Prime Minister convened with parliamentary members and senior officials, including Minister Badawi, EMRA Chairman Yasser Ramadan, and top executives from AngloGold Ashanti. He underlined that the journey from exploration to commercial production typically takes over a decade, even under ideal conditions, due to the complexity and capital intensity of mining operations.
Madbouly reaffirmed Egypt’s commitment to enhancing the role of the mining sector in national development. He noted that turning EMRA into an economic entity will further support the efficient management of resources and drive exploration efforts, strengthening Egypt’s position in the global gold market. Minister Badawi concluded by emphasizing the continued coordination between the Ministry and Parliament to implement comprehensive reforms and ensure the sector aligns with global standards.
