Egypt’s Orascom to focus on gold mining

Egypt’s family-owned Orascom has announced plans to focus on gold mining business in Egypt, as well as seeking more investments in Africa.

Orascom chief Naguib Sawiris revealed the plans and said the prominent company’s investments in Egyptian gold mining reflects the positive development in the country’s regulation of the industry. The new regulations, which makes it easier for the private sector to conduct gold mining activities, have spurred investments in the sector, he said.

Sawiris also talked about the company’s move to invest more in African countries, which he said could yield high returns.

Mining in Egypt

“I am one of the people who are convinced that (Africa) has very promising opportunities because people are afraid to go there and the competition is less, and these peoples need these investments,” he said.

Mining in Egypt has had a long history that dates back to predynastic times. Active mining began in Egypt around 3000 BCE. Egypt has substantial mineral resources, including 48 million tons of tantalite (fourth largest in the world), 50 million tons of coal, and an estimated 6.7 million ounces of gold in the Eastern Desert.

While Egypt’s mineral wealth is world class, the country was lacking an internationally competitive mining policy that provides the right balance of economic returns to both the government and the investor. In a bid to address this and attract foreign investment, the government issued Law No. 198 of 2014 in December 2014, commonly referred to as the ‘Mining Law’ to replace the former law concerning Mines and Quarries issued in 1956 (‘the Old Law’).