AngloGold Ashanti recently acquired Centamin, which was investing in the mine, and pumped new investments into the Egyptian mining sector.
During the meeting, the Egyptian Minister expressed his aspiration for a strategic partnership in the Sukari gold mine, and to increase the mining sector’s contribution to the Egyptian economy to up to 6 times its current contribution.
Badawi pointed out that the mining sector has great potential that makes it eligible for a greater contribution to the national product, similar to the experiences of many countries, explaining that its current contribution does not exceed 1% of the Egyptian national product, while there is an opportunity to increase it to between 5-6% over the years. In the medium term, through intensifying cooperation and integration, facilitating investment, and supporting mining ore processing industries.
The Minister stressed the Egyptian government’s commitment to developing the mining sector, creating an attractive environment for investment in this sector, and providing great investment opportunities.
According to the statement, Marcelo Pereira da Silva, First Vice President of AngloGold Ashanti for the Latin America region, confirmed that investing in Egypt is a “great opportunity,” and that the company is seeking a successful long-term partnership in Egypt with the Sukari mine project.
Anglo Ashanti Gold Company, listed on the New York Stock Exchange, ranks fourth in the world in the classification of gold producing companies, and acquired about 83.6% of Centamin Company, which operates the Sukari mine, for $2.5 billion last month.
The Sukari mine has produced 5.8 million ounces since the start of work, while the mine’s production in 2023 will reach about 470 thousand ounces of gold.
Centamin Mining Company stated last March that the mine is heading to produce about 500,000 ounces of gold annually on an ongoing basis in the long term, with the end of a reinvestment program this year.
Source: RT
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How can strategic partnerships in the mining sector contribute to Egypt’s economic growth and job creation?
**Interview with Dr. Ahmed Sabry, Mining Expert and Economic Analyst**
**Interviewer:** Thank you for joining us today, Dr. Sabry. Recent reports indicate that AngloGold Ashanti has acquired Centamin for approximately $2.5 billion. Can you share your insights on what this deal means for the Egyptian mining sector?
**Dr. Sabry:** Thank you for having me. The acquisition of Centamin by AngloGold Ashanti is a significant move, especially as Centamin has been a vital player in the Egyptian mining landscape, particularly with the Sukari gold mine, which is one of the largest gold producers in the country. This deal not only reinforces AngloGold’s position in the market but also suggests a commitment to further investment in Egypt’s mining sector.
**Interviewer:** Speaking of investments, it’s reported that the Egyptian Minister expressed hopes for a strategic partnership regarding the Sukari mine. How do you view this partnership?
**Dr. Sabry:** The Minister’s aspiration for a strategic partnership is crucial. It reflects a growing recognition of the mining sector’s potential to drive economic growth. If managed well, such partnerships can lead to increased employment opportunities, technology transfer, and infrastructure development. The goal to raise the mining sector’s contribution to the economy to 6% is ambitious but achievable with the right strategies and investments.
**Interviewer:** What are the expected benefits that this partnership could bring to both AngloGold and the Egyptian economy?
**Dr. Sabry:** For AngloGold, aligning with the Egyptian government can streamline operations and mitigate bureaucratic challenges. For the Egyptian economy, increased foreign investment and technology sharing from a leading mining firm like AngloGold could stimulate local industries and enhance production capabilities. Additionally, a robust mining sector can attract further investments, creating a positive cycle of economic growth.
**Interviewer:** There are always challenges in such large-scale investments. What potential obstacles do you foresee?
**Dr. Sabry:** Certainly, while the outlook is positive, there are challenges, including regulatory hurdles, environmental concerns, and social implications of mining activities. It’s essential for both AngloGold and the Egyptian government to address these proactively to ensure sustainable development that benefits all stakeholders involved.
**Interviewer:** Thank you, Dr. Sabry. Your insights are invaluable as we continue to monitor this exciting development in Egypt’s mining sector.
**Dr. Sabry:** Thank you for having me. I’m looking forward to seeing how this partnership evolves and contributes to the Egyptian economy.
