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 might the strategic partnership between the Egyptian government and AngloGold Ashanti influence regulatory practices in the country’s mining sector?
**Interview with Dr. Sarah El-Amin, Economic Analyst and Mining Expert**
**Interviewer:** Good morning, Dr. El-Amin! Thank you for joining us today to discuss the recent developments in the Egyptian mining sector, particularly regarding AngloGold Ashanti’s acquisition of Centamin.
**Dr. El-Amin:** Good morning! Thank you for having me.
**Interviewer:** To start, can you provide us with an overview of the implications of AngloGold Ashanti acquiring Centamin?
**Dr. El-Amin:** Certainly. AngloGold Ashanti’s acquisition of Centamin, valued at approximately £1.9 billion, marks a significant shift in the mining landscape of Egypt, especially considering that Centamin has been a key player in the Sukari gold mine, the country’s first large-scale gold mine. This acquisition brings not only financial resources but also technical expertise to enhance operations and possibly expand production at Sukari, which could prove beneficial for the local economy and employment.
**Interviewer:** The Egyptian Minister has mentioned aspirations for a strategic partnership in the Sukari gold mine. How important is this partnership for the future of Egypt’s mining sector?
**Dr. El-Amin:** It’s very important. The Egyptian government is looking to increase the mining sector’s contribution to the GDP significantly, with ambitions to boost it to around 6%. A strategic partnership with AngloGold Ashanti can facilitate this by attracting further investments and possibly developing other mineral resources across the country. Such collaborations can also enhance regulatory frameworks and create a more stable investment climate.
**Interviewer:** With their new investment in the sector, what changes can we expect to see in the short term?
**Dr. El-Amin:** In the short term, we can expect increased activity in the Sukari mine, which may lead to higher production levels and ultimately more revenue for the government through taxes and royalties. Additionally, the influx of investment could mean new job opportunities for locals, which is crucial for improving community welfare. As operational efficiencies improve, we might also see a more significant focus on sustainability practices, which is becoming increasingly vital in the mining industry.
**Interviewer:** Looking ahead, what challenges might AngloGold Ashanti face in managing Centamin and the broader Egyptian mining landscape?
**Dr. El-Amin:** Some of the challenges include navigating Egypt’s regulatory framework, which has historically been complex. Maintaining a good relationship with local communities is also key, as public support can significantly influence operational success. Furthermore, global market fluctuations in gold prices could impact profitability, so effective risk management strategies will be essential.
**Interviewer:** Thank you, Dr. El-Amin, for providing such valuable insights into this important development in Egypt’s mining sector.
**Dr. El-Amin:** My pleasure! I’m excited to see how this partnership unfolds and positively impacts the Egyptian economy.