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Thursday, 29 November 2018

Wood Mackenzie says four challenges are facing Egypt’s mining sector

Wood Mackenzie says four challenges are facing Egypt’s mining sector: Egypt’s mining sector faces four challenges, according to Ricardo Monte Alto, head of Metals and Mining Americas at Wood Mackenzie, which was hired to lay out a development strategy for Egypt’s mining sector. These include oil and gas-style production sharing agreements and requiring exploration companies to acquire exploration ground before obtaining exploration licenses. He named current outdated legislation as another major problem, while criticizing the lack of available and accessible information to investors. Monte Alto’s statements came during his keynote speech at this week’s Arab International Mineral Resources Conference.

Background: Wood Mackenzie’s suggestions have largely been incorporated in recently proposed amendments to the Mineral Resources Act. The changes have been praised by industry leaders and were sent to the House for review earlier this month. Egypt wants to see mining account for 2% of GDP within five years, Oil Minister Tarek El Molla has said.

Also from the conference: EMRA wants to integrate Egypt’s wildcat miners into formal economy. The Egyptian Mineral Resources Authority (EMRA) is looking to integrate wildcat gold miners into the formal sector through dedicated industrial zones, EMRA head Ayman El Saie said at the conference, according to Youm7. The zones — to be established in Marsa Alam, Shalateen, and Aswan — will process some 40 tonnes of gold alloys estimated to be unearthed by the informal miners each year.

Meanwhile, perennial gold bug Naguib Sawiris’ La Mancha Group is looking to acquire assets put up for sale by Canada’s Barrick Gold after its merger with Rangold Resources, Sawiris said, according to Reuters. Naguib also expressed an interest in Sudan. The FT also has the story.

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