Three more companies get a hold of mining contracts
Three mining companies have signed five new gold exploration contracts worth a combined USD 13 mn with the Oil Ministry, according to a cabinet statement. The contracts include a USD 9 mn agreement signed with Canada’s Lotus Gold for the rights to explore 11 blocks, while Mining and Manufacturing Company (MEDAF) received the rights to explore one block in a USD 3 mn contract. Egypt’s Ebdaa for Gold also signed a USD 1 mn contract for the rights to explore one block.
Eleven mining companies were awarded 82 exploration blocks under the results of a tender last year. The blocks were distributed among seven foreign firms and four local companies, which will invest around USD 60 mn in the exploration phase. Amendments to the Mineral Resources Act offering investors more attractive terms were approved last year. Molla had announced that Egypt would issue a new gold exploration tender every four months.