Despite plentiful reserves and a rich mining history that gave rise to elaborate Pharaonic gold jewellery, Egypt has just one commercial gold mine in operation — Centamin’s (LON: CEY) (TSX: CEE) Sukari mine.
The lack of activity was due, in part, to the country’s past system of royalties and profit-sharing agreements. They made it difficult and unprofitable for miners to explore for and exploit minerals.
A legislative overhaul in 2020 eliminated the need for miners to form joint ventures with the Egyptian government. It also limited state royalties to a maximum of 20%.
The country also announced a series of upcoming gold bid rounds, which have so far attracted mining heavyweights as well as juniors.
Canada’s Aton Resources (TSX-V: AAN) is one step ahead. After securing a license in early 2020, the company launched last year an ambitious exploration drilling and development program focused on building Egypt’s second operating gold mine. The country, which links northeast Africa with the Middle East, has targeted $1 billion in new investments in the mining and energy sectors by 2030.
(With files from Reuters)
