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, by intensifying cooperation and integration, facilitating investment, and supporting mining ore processing industries.
The Minister affirmed 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 are the potential economic impacts of AngloGold Ashanti’s acquisition of Centamin on local communities in Egypt, particularly around the Sukari mine?
**Interview with Richard Williams, Mining Analyst and Expert on Egyptian Economics**
**Editor:** Welcome, Richard! Thank you for joining us today to discuss AngloGold Ashanti’s recent acquisition of Centamin and its implications for the Egyptian mining sector.
**Richard:** Thank you for having me. It’s an exciting time in mining, especially in Egypt.
**Editor:** Let’s start with the acquisition itself. AngloGold Ashanti’s £1.9 billion deal to buy Centamin is significant. How do you see this affecting the mining landscape in Egypt, particularly at the Sukari mine?
**Richard:** This acquisition signals a strong commitment from AngloGold Ashanti to expand its footprint in Egypt’s mining sector. The Sukari gold mine, being one of the largest gold producers in the country, stands to benefit substantially from increased investment and operational efficiencies that AngloGold can provide. This could lead to enhanced production and more job opportunities for local communities.
**Editor:** The Egyptian Minister has also expressed aspirations for a strategic partnership regarding the Sukari mine. What might such a partnership look like?
**Richard:** A strategic partnership could involve collaborative efforts between the Egyptian government and AngloGold to boost production and ensure sustainable practices in mining. It may also include initiatives for local workforce training, infrastructure development, and community engagement, which are vital for long-term success. By aligning more closely, both parties could significantly increase the mining sector’s contribution to Egypt’s economy, potentially aiming for a target of 5% or more of GDP as the Minister suggested.
**Editor:** With this move, how do you think AngloGold Ashanti’s investment will influence foreign direct investment in Egypt’s mining sector?
**Richard:** This acquisition could act as a catalyst for more foreign investment. It demonstrates confidence in Egypt’s mining potential and regulatory environment. If AngloGold successfully increases productivity and profitability at the Sukari mine, it might encourage other companies to consider Egypt as a viable destination for their investments, thereby boosting the overall mining sector in the country.
**Editor:** what challenges do you foresee with this acquisition and the broader ambitions for the Egyptian mining sector?
**Richard:** There are a few hurdles to navigate. The mining sector must contend with bureaucratic processes and regulatory hurdles that can slow down project timelines. Additionally, the government needs to ensure that the local population sees tangible benefits from these investments, not just economic returns on investment. Engaging communities and managing expectations will be crucial. If these challenges are met positively, the future for Egyptian mining could be quite bright, thanks to partnerships like the one being forged here.
**Editor:** Thank you, Richard, for your insights. It seems like a pivotal time for both AngloGold Ashanti and the Egyptian mining industry.
**Richard:** Absolutely, and I’m looking forward to seeing how this all unfolds. Thank you for having me!