EGYPT – Egypt mining sector has received a major boost after a new goldmine with reserves estimated at more than one million ounces of gold was discovered in the country’s Eastern Desert.

While confirming the new discovery, Egypt’s Minister of Petroleum Tarek el-Molla, clarified in a statement that the new discovery is located in the concession area of “Shalatin” Company for Mineral Resources.

According to a report by Egypt Today, Shlatin company is comprised of: The Egyptian General Mineral Resources Authority, the National Service Projects Authority, the National Investment Bank and the Egyptian Mineral Resources Company.

The new gold mine is expected to have an extraction rate of 95 percent, which is one of the highest rates, noted Mr. Tarek el-Molla, adding that over the next ten years, the mine is expected to attract investments of more than US$1 billion.

“It is intended to attract foreign direct investment within two years in the mining sector in Egypt, estimated at about $375 million, and to increase the expected direct investments in 2030 from US$700 million to $1 billion,” the minster stated.

A statement from Egypt’s Ministry of Petroleum revealed that a new company will be formed between “Shalatin” and the Mineral Resources Authority to start operations in the disclosure area.

The company once operation will become the third company in Egypt working in extracting gold and accompanying minerals, after the Australian Pharaonic Company, the Cyprus-based Mats Holdings.

The Australian Pharaonic Company currently operates the Sukari mine and while Mats Holdings operates in the Hamsh mine.

For exploration and drilling of gold, another two gold companies are operating in Egypt: Canada’s Aton Mining and the UAE’s Thani Dubai.

Gold production in Egypt currently exists in three sites across the Eastern Desert: Sukari Mountain, Hamash and Wadi al-Alaqi.

According to Egyptian Mineral Resources Authority (EMRA) Gold reserves are present in 120 ancient sites, from old mines to other areas all in the Eastern Desert.

Nevertheless, Egypt has few gold mining activities, with only one gold producing mine currently under operation: the Centamin- owned Sukari mine.

Earlier this year, Centamin Egypt announced that cash flow generated from gold production in 2019 resulted in US$107 million being distributed to Egypt in profit share and royalties.

According to Centamin, almost US$500 million in profit share and royalty payments has been received by Egypt, to date.

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