Petroleum Minister announces new gold discovery of 1m ounces reserve

Mohamed Adel
2 Min Read

Minister of Petroleum Tarek El Molla has, in a commercial disclosure, announced a new gold discovery of over 1m ounces reserve in the Eastern Desert’s Eiqat region.

The reserve, which has a 95% recovery rate, has one of the highest rates of extraction, and with a total $1bn investment over the next 10 years.

The new disclosure is located in the Shalateen Mineral Resources Company’s concession area. The Wealth and Resources Mining Company undertook the exploration services in the region in accordance with its contract with the former.

The new commercial disclosure is the result of Egyptian investment in the gold exploration and exploitation field by the Shalateen Company. It has witnessed successful partnerships with a number of state sectors, including the Egyptian General Mineral Resources Authority (EMRA), the National Service Projects Authority (NSPO), the National Investment Bank (NIB) and the Egyptian Company for Mineral Resources (ECMR).

A new company will be formed by the Shalateen Mineral Resources Company and EMRA to carry out operations in the exploration area once the required procedures are completed. The new company will be set up to extract gold and accompanying minerals.

El Molla said that, in light of ongoing the mining industry reform programme, Egypt is looking to attract foreign direct investment (FDI) in the next two years estimated at $375m, which is set to rise to $700m-1bn by 2030.

The new discovery of gold coincides with the Ministry of Petroleum’s programme of developing and modernising Egypt’s mining sector to increase its contribution to national production.

Egypt has recently extended the closing date for the first gold exploration tender in 2022, to 15 September, taking into account amendments introduced in March. The closing date for tenders had originally been set for 15 July.

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