A new amendment to Egypt’s mineral resources law will transform the country’s mineral authority into an economic entity, a move aimed at boosting investment and increasing the mining sector’s contribution to gross domestic product, officials and industry leaders said.
Speaking at a panel discussion at the Egypt Mining Forum, lawmakers and a top industry executive highlighted the benefits of the new legislation.
The panel was moderated by Dr. Mohamed El-Bagoury, head of legal affairs at the petroleum ministry, and attended by Minister of Petroleum and Mineral Resources, Karim Badawy.
Parliamentarian Mohamed Ismail, a sponsor of the bill, said the new law was the result of a legislative evaluation of a 2014 amendment that failed to achieve its desired impact on the mining sector’s contribution to GDP.
He said that administrative distortions at the Egyptian Mineral Resources Authority (EMRA) were a key challenge, necessitating its transformation into an economic body capable of modernising mining operations, forming economic partnerships, and providing the geological data needed to attract investment.
Ismail explained that the new law gives EMRA greater flexibility to set a national strategy for mining industries, allows it to partner with the private sector to reduce investor risk, and enables it to invest in updating geological databases through satellite imagery and modern surveys. He added that a major advantage of the law is the consolidation of authority for granting permits and approvals by including representatives from various government bodies on EMRA’s new board of directors.
Mohamed El-Sallab, chairman of the parliament’s industry committee, said the minister’s support for the law was an unprecedented positive gesture. He said the law would allow EMRA to enter into investment partnerships and local manufacturing projects to maximise the economic return from mineral resources instead of exporting them as raw materials. El-Sallab predicted the sector could raise its contribution to GDP to 5%, and possibly even 10%, within three years.
Hoda Mansour, managing director of Sukari Gold Mining and a representative of AngloGold Ashanti, said the transformation of EMRA into an economic entity sends a “real message of confidence” to investors.
She noted that AngloGold Ashanti’s decision to invest in Egypt for the first time last year came after careful consideration and was driven by the state’s positive approach to investment. Mansour praised the minister’s engagement with investors and a recent visit by the prime minister to the Sukari mine as signals of genuine political will to develop the sector.
Mansour added that the new exploitation contract signed with AngloGold Ashanti is the first of its kind and is based on the latest international laws and standards, which she said opens broad prospects for attracting more investment from major mining companies.
