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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How might this strategic partnership between AngloGold Ashanti and the Egyptian government impact local communities and investment in the mining sector?
**Interview with Mining Industry Expert on AngloGold Ashanti’s Acquisition of Centamin**
**Interviewer:** Good day, and welcome! Today we have a special guest, Dr. Layla Hassan, a mining industry expert, to discuss the recent acquisition of Centamin by AngloGold Ashanti and its implications for the Egyptian mining sector. Dr. Hassan, thank you for joining us.
**Dr. Hassan:** Thank you for having me!
**Interviewer:** To start, can you give us a brief overview of what this acquisition means for the Sukari gold mine and the Egyptian economy overall?
**Dr. Hassan:** Certainly! AngloGold Ashanti’s acquisition of Centamin marks a significant shift in the mining landscape, particularly for the Sukari gold mine, which is one of the largest gold producers in Egypt. The agreement, where Centamin shareholders received approximately 0.06983 of a new AngloGold share and $0.125 in cash for each share, gives AngloGold a strong foothold in Egypt, holding 83.6% of the combined entity. This acquisition is expected to bring in new investments and operational efficiencies, which could enhance productivity and increase returns from the mine [[1](https://www.lse.co.uk/news/anglogold-ashanti-seals-takeover-of-sukari-gold-mine-owner-centamin-abnj7j05m9fd77i.html)].
**Interviewer:** That sounds promising. We also heard that the Egyptian Minister has expressed aspirations for a strategic partnership concerning the Sukari mine. How do you see this partnership evolving?
**Dr. Hassan:** The Egyptian government’s interest in establishing a strategic partnership indicates a clear commitment to boost the mining sector’s contribution to the national economy. They aim to increase this contribution significantly, which can drive job creation and technological advancements within the industry. With AngloGold’s experience and Centamin’s on-the-ground knowledge, we can expect collaborative efforts to enhance local resources, improve mining practices, and possibly create new investment opportunities in surrounding areas.
**Interviewer:** There has been talk of boosting investments in the Egyptian mining sector. In what ways do you think AngloGold Ashanti’s involvement could help achieve this?
**Dr. Hassan:** AngloGold’s extensive resources and strong operational capabilities could catalyze further investments not only in the Sukari mine but across Egypt’s mining sector. By demonstrating successful management and increased production capabilities at Sukari, they could attract additional foreign direct investment into the country. Moreover, they could also foster partnerships with local enterprises and promote initiatives aimed at sustainable mining practices, which is increasingly important in today’s economy.
**Interviewer:** what are some challenges you think AngloGold Ashanti might face in this new venture?
**Dr. Hassan:** While there are many opportunities, challenges such as navigating local regulations, ensuring environmental sustainability, and maintaining community relations cannot be overlooked. Additionally, geopolitical risks in the region can impact operations. How they manage these relationships and address local concerns will be crucial for the success of their strategy in Egypt.
**Interviewer:** Thank you, Dr. Hassan, for your insights. It will be interesting to see how this strategic partnership unfolds and what it means for the future of mining in Egypt.
**Dr. Hassan:** Thank you for having me! It’s an exciting time for the sector, and I look forward to seeing the developments.
**Interviewer:** And thank you to our audience for tuning in! Stay tuned for more updates on this topic.