Egypt seeks to increase its income from gold mines 6-fold

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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What challenges does Dr. Khan ⁤foresee for the Egyptian mining industry‍ in light‍ of⁤ recent acquisitions and developments?

⁢ **Interview ⁤with Dr. Ahmed Khan, Mining Sector Expert**

**Editor**: Thank you for joining us today, Dr. Khan. Recently, AngloGold Ashanti announced its acquisition of ‍Centamin, a move that’s poised ​to impact the ⁣Egyptian‍ mining sector significantly. What are your initial thoughts on this acquisition?

**Dr. Khan**: Thank you for having me. The acquisition of Centamin by ‌AngloGold‍ Ashanti is ⁤indeed a pivotal development⁢ for the Egyptian mining industry. This £1.9 ⁤billion deal, which received court ⁤approval just ⁢this September, signals a strong belief in the potential of Egypt’s mining‍ sector, especially ‍in gold production. Centamin’s expertise ⁢and resources will likely enhance operations at the Sukari gold mine, which is ⁤already a key player in the region.

**Editor**: ⁤You mentioned ‌the Sukari gold mine. How ‌do‌ you see this acquisition ‍influencing ‍future investments in that mine and the broader mining sector​ in Egypt?

**Dr. Khan**:​ The strategic partnership seems promising, particularly as the Egyptian Minister of Mines has expressed ambitions to strengthen the country’s mining sector. A focus on collaboration at the Sukari‍ mine could increase efficiency and output, potentially raising ​the sector’s ⁢contribution to the national economy to ‌6%. Such growth would attract further ⁢investments and innovations, making Egypt a competitive⁤ player ⁤in the global‍ mining market.

**Editor**: That sounds encouraging. ⁣Given the current economic climate, what challenges do you foresee in realizing this growth?

**Dr. Khan**: While the ‌potential is there, several ‌challenges‍ could ⁤arise. Regulatory hurdles, infrastructure needs, and​ geopolitical factors can affect ‌operations. Moreover, ⁣it will be crucial for AngloGold Ashanti and Centamin to integrate effectively and‌ foster local partnerships ⁣to navigate these challenges. Transparent communication with stakeholders, especially local communities, will​ also ⁣be vital to gaining support and ensuring sustainable development.

**Editor**: Lastly, how does this deal⁢ position Egypt within the⁢ global mining landscape?

**Dr. Khan**: This acquisition could very well position Egypt as a significant ⁤player ‍in the global mining​ landscape, especially in gold production. By boosting investment ‌and optimizing operations at one of the​ largest gold mines in Africa, Egypt can attract more international firms looking for stable mining environments. The government’s aspiration to elevate the mining sector’s GDP ⁢contribution aligns with global trends where countries ⁣are increasingly⁤ recognizing the⁢ value of their natural​ resources.

**Editor**: Thank you, Dr. ⁢Khan, ⁣for your insights. It’s clear that while opportunities await, the​ journey will require careful navigation of various factors.⁣

**Dr. ⁣Khan**: Absolutely, and thank you for ‌discussing this important topic. The⁤ future⁣ of Egyptian mining looks promising if approached strategically.

**Editor**: Thank you for your time!

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