Egypt is targeting an increase in the mining sector’s contribution to gross domestic product (GDP) to around 6% in the coming period as the government seeks to attract more investment, expand exploration and production, and increase the local value added of mineral resources.
The target was announced by Minister of Petroleum and Mineral Resources Karim Badawi during the opening of the fifth edition of the Egypt Mining Forum (EMF), held on September 28-29 in the New Capital under the theme “Unlocking Egypt and the Arabian-Nubian Shield’s Exploration Potential.”
The forum brought together local and international mining investors, as well as ministers and government officials from several mining countries.
Badawi said Egypt has the fundamental resources needed to develop an integrated mining sector capable of making a larger contribution to the national economy, with the government seeking to increase investment, attract more companies, expand mineral processing, and maximise value added.
He noted that the government’s strategy is shifting from extracting minerals and exporting them in their primary form towards processing resources locally and developing industries based on Egypt’s mineral wealth.
The minister said 119 companies submitted applications during the first three months following the launch of Egypt’s open-block mining tender system on June 10, 2026, including more than 14 foreign companies from Australia, the UK, Canada, Saudi Arabia, Türkiye, South Africa, India, and China.
The companies submitted 403 offers covering 118 blocks out of 335 blocks offered under the system. The areas extend across nearly 45,000 square kilometres and include promising deposits of gold, phosphate, talc, kaolin, and other minerals.
Badawi said the new system provides greater flexibility and faster allocation of mining areas in line with international practices, reflecting the government’s move towards a more open investment model that is more responsive to market requirements.
He described the initial investor response as an important step towards expanding exploration and developing mineral resources within the Arabian-Nubian Shield.
The minister cited the Sukari gold mine as an example of Egypt’s mining potential. The mine has produced 6.8 million ounces of gold since production began in June 2009, demonstrating the potential for further development of the country’s mineral resources.
Egypt’s mining potential is supported by its diverse geological resources across large areas of the Eastern Desert and South Sinai, as well as its location within the Arabian-Nubian Shield, which offers opportunities for exploration for gold, copper, base metals, nickel, cobalt, rare earth elements, and other minerals.
Badawi said these resources are supported by energy availability, an expanding road and port network, and Egypt’s strategic location connecting three continents and overlooking the Mediterranean and Red seas. The Suez Canal also provides access to one of the world’s major trade routes, supporting the development of an integrated mining industry and attracting long-term investment.
He said the authority’s new board includes representatives from several government ministries, including the Ministries of Environment, Industry, and Finance, with the aim of coordinating licensing procedures, environmental requirements, industrial development, and financial policies.
The new structure is also intended to provide investors with a one-stop-shop approach to mining-related procedures.
Egypt is also preparing a new model agreement for gold exploitation designed to provide greater clarity and flexibility and improve the competitiveness of the country’s mining investment framework.
Badawi said the ministry has sought direct feedback from investors in major mining markets, including Australia and Canada, to identify challenges facing companies and examine international practices that could be applied in Egypt.
Furthermore, the ministry has begun introducing incentives and procedures aimed at creating a more flexible and competitive investment environment and allowing investors to focus resources and expertise on exploration, mineral development, and value creation.
The ministry has also introduced amendments to the executive regulations to increase flexibility in exploration activities, enhance investor incentives, and reduce the cost risks associated with the early stages of mining projects.
Phosphate processing and value addition
Badawi said Egypt ranks third globally in phosphate rock reserves and seventh in phosphate production in 2025, with the government working to expand the industrial use of these resources.
Eight new industrial projects are being developed to maximise the value of phosphate resources. These include the first phase of the phosphoric acid complex in Abu Tartour, which will have a production capacity of 250,000 tonnes per year and investments of $650m. Production is scheduled to begin in 2028.
Other projects are being developed to produce phosphate fertilisers in cooperation with Egyptian and international investors, alongside efforts to expand the use of minerals required for energy-related industries and other future industries.
Badawi said the objective is not limited to increasing mineral production, but also includes expanding value-added industries, creating jobs, increasing exports, and attracting investment based on technology, expertise, and knowledge.
He said achieving these objectives requires stronger partnerships between the government and investors, a stable investment environment, faster procedures, better access to information, and the conversion of geological opportunities into commercially viable projects.
He emphasised that Egypt is seeking serious, long-term mining investment based on knowledge and technology transfer and greater local value creation, while continuing to address regulatory and operational challenges facing exploration and production.
The minister concluded that the fifth Egypt Mining Forum marks the beginning of a new phase for the sector, with the government seeking to translate Egypt’s geological resources into economic value and attract new partnerships and investments in Egypt and the wider region.
