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Sunday, 4 November 2018

Mineral Resources Act will focus on “value-added” minerals

LEGISLATION WATCH- Mineral Resources Act will focus on “value-added” minerals: The amendments to the Mineral Resources Act reflects a desire by the government to focus on resources that can be refined, used for industry or move up the value chain, Oil Minister Tarek El Molla said on Thursday. Speaking at a workshop on the amendments, El Molla reiterated that part of the objectives of the mining sector reforms was to make the industry attractive to both domestic and foreign players, according to AMAY, which noted little of what said about the fine print of the law. El Molla had said last month that the amendments to the act would be presented to the House of Representatives in three months.

Why the private sector loves the new reforms: Previous reports indicate that the reforms will see Egypt scrap the current oil-and-gas-style production sharing agreement and move to a tax, rent and royalty model — and eliminate the requirement of a 50:50 JV with EMRA. The bill is also expected to allow exploration companies to acquire exploration ground without first obtaining exploration licenses. The amendments have received the overwhelming support of the industry, with top execs at Aton Resources, Thani Stratex Resources and Resolute Egypt signing an exclusive op-ed for Enterprise praising the reforms.

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