|Mark Campbell reports that mining in Egypt is a risky investment because you would be dealing with the Egyptian military not a ministry of mining or a scientific organization. Last year, four mining companies left Egypt, their projects were rejected by military order.|
They then searched for any foreign direct investment to restore the national gold reserve to its previous level. They reviewed oil and mining contracts to secure more income for the country. But after the Egyptian revelation failed, the Egyptian Armed Forces (EAF) are now working hard to generate revenues via The Egyptian Mineral Resources Authority (EMRA), to increase foreign direct investment in the mineral industry.
Centamin is the only gold mining company working in Egypt now and they are still
struggling with the new Egyptian law of mining. The deals are made like an oil production contract 50..50 joint venture.
The main agreement with the Sukari mine was ...
1. 3% royalty to the government
2. 50%..50% of the net profit
3. The government will not share any financial losses or any expenditure
before or after starting production.
4. The government will allow you to recoup your initial investment i.e. exploration and establishing the mine equipment.
Centamin mining company is operating in Egypt however so it can be done....
This agreement is not a model mining contract. I do not think any mining company will invest in Egypt at first or for long if things do not change. The main issue in the Egypt mineral industry now is that there is no mining code, just the bureaucracy of the EAF and their consultants.
The Mining Code should refer to a comprehensive set of rules, regulations and procedures to regulate exploration and mining of minerals from the individual perspective, both government (EAF) and mining companies.
Nothing much will happen until a viable code is made available that works, but the potential is present for new discoveries and new mines.