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
#Egypt #seeks #increase #income #gold #mines #6fold
What are the expected benefits of AngloGold Ashanti’s acquisition of Centamin for the local economy and mining infrastructure in Egypt?
**Interview with an Expert on AngloGold Ashanti’s Acquisition of Centamin**
**Interviewer:** Thank you for joining us today to discuss the recent news about AngloGold Ashanti’s acquisition of Centamin. To start, can you give us some context on this acquisition and its significance for the mining sector in Egypt?
**Expert:** Absolutely, it’s a pleasure to be here. AngloGold Ashanti’s acquisition of Centamin for approximately $2.5 billion is a notable development for both the company and the Egyptian mining sector. This deal values Centamin shares at a premium of 36.7%, indicating AngloGold’s confidence in Centamin’s value, particularly in the Sukari gold mine, which is one of the largest gold producing sites in Egypt. This acquisition is expected to increase investment in the Egyptian mining sector significantly, which aligns with the Egyptian government’s goals for economic growth.
**Interviewer:** That’s a substantial investment. What does this mean for the future of the mining industry in Egypt, particularly regarding the Sukari gold mine?
**Expert:** The Egyptian Minister’s aspirations for a strategic partnership in the Sukari gold mine underscore the potential for collaboration between local authorities and international investors. This partnership could lead to enhanced technological investments and possibly increase the mine’s output, contributing more substantially to the Egyptian economy. The Minister aims to elevate the mining sector’s contribution to the economy to around 6% in the coming years, which would be a significant increase and could provide jobs and local development.
**Interviewer:** It’s interesting to see such strategic moves. What challenges do you foresee for AngloGold Ashanti as they integrate Centamin and push for expansion in Egypt?
**Expert:** One of the primary challenges will be navigating the regulatory and operational environment in Egypt. While there is potential for growth, the mining sector can face bureaucratic hurdles and fluctuations in policy. Additionally, ensuring sustainable practices and addressing community relations will be crucial for long-term success. AngloGold will need to build strong local partnerships and focus on sustainable mining, which is increasingly important in today’s world.
**Interviewer:** how do you see this acquisition impacting the global gold market?
**Expert:** The acquisition signals a consolidation trend within the gold mining sector, as larger companies seek to expand their reserves and operational footprints through strategic purchases. In the global market, this could lead to increased competition amongst gold producers and shift the dynamics in gold pricing, especially with the expected rise in production from the Sukari mine. It will be interesting to see how investors react to these changes in the coming months.
**Interviewer:** Thank you for your insights. This is certainly an exciting time for the mining sector in Egypt and the global gold market.
**Expert:** Thank you for having me; it’s an exciting topic indeed!
