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Egyptian-Chinese partnership formed to extract minerals from black sand - Daily News Egypt

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Egyptian-Chinese partnership formed to extract minerals from black sand

Issued capital not determined yet; Egypt’s share is 75%, sources say


The National Service Projects Organisation (NSPO) and the Egyptian Black Sand Company (EBSC) have agreed with two Chinese companies to form a partnership for extraction of minerals in the black sand of the Mediterranean coast.

Informed sources told Daily News Egypt that negotiations are taking place regarding some contractual terms. Egypt’s share in the company is 75%, and China’s is 25%. The board of the newly formed company includes five Egyptian members and two members from China. An agreement is to be reached on the value of the company’s capital.

The sources added that the main reason for launching a company in partnership with China is the great potential it has in carrying out the assigned tasks in a shorter time, as it can extract minerals from sand within six months. The establishment of the company will be announced at the end of this month.

The sources explained that the company planned to be launched will not be working in the navigation area of Manisi or Brulus but will rather work in other areas that have large amounts of black sand, including Ghalion lake, Adco, Rashed, and New Mansoura.

“There is a land near Ghalion Lake which has black sand, nearly 74m tonnes in two areas. The first is next to Ghalion lake with 48m tonnes, and the second near the electricity plant there, with 26m tonnes.

In December, the government allocated a plot of land with an area of 50 feddans in Metobas in Kafr El-Sheikh for the EBSC based on an usufruct system, in order to establish a factory for black sand separation to extract economic minerals.

 

The EBSC agreed with the Australian company Mineral Technologies to supply the black sand drilling equipment and machines. An agreement is underway on the items of the contract.

The EBSC was established in February 2016 with a capital of EGP 1bn. The board of the company includes a chairperson and eight members. According to the structure of shareholders, five members are from the NSPO, a member from the Nuclear Materials Authority, in addition to a member from the National Investment Bank (NIB), a member from Kafr El-Sheikh Governorate, and a member from the Egyptian Mineral Resources Authority (EMRA).

………..

 

Topics: black sand

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https://www.dailynewsegypt.com/2018/03/13/egyptian-chinese-partnership-formed-extract-minerals-black-sand/
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