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Thursday, 24 September 2020

A blockbuster gold discovery may have killed Sawiris’ chances of nabbing Shalateen Mining

A blockbuster gold discovery may have killed Sawiris’ chances of acquiring Shalateen Mining: Naguib Sawiris’ interest in a majority stake in state-owned Shalateen Mining have reportedly hit a roadblock after the company made a blockbuster gold discovery in the Eastern Desert. Oil Ministry sources told Cairo24 that some of Shalateen’s shareholders rejected the La Mancha owner’s advances after finding gold reserves potentially holding more than 1 mn ounces, bringing talks with the government to a standstill. More than USD 1 bn could be invested in the deposit over the next 10 years.

Apparently the decision to end the talks was mutual: A source from La Mancha said the decision to end the talks was mutual, saying only, “We are now studying some options and other investment [openings] in African countries. Naguib sounded a similar note, telling Al Arabiya that he intends to increase his investments in gold mining.

La Mancha among bidders in Egypt’s gold mining tender: La Mancha, along with Canadian mining firm Barrick Gold and Egypt-focused Centamin, were among the companies to submit bids in the government’s gold exploration tender, which closed last week. The Egyptian Mineral Resources Authority’s (EMRA) had launched in March the bid for the rights to mine 56k sqkm in the Eastern Desert. Barrick, La Mancha, Centamin, and several other companies are bidding on two-year renewable exploration licenses for 320 blocks under the block-based concession system.

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