Historically, Egypt has been home to a substantial mining industry dating back to the predynastic era. The area known as the Arabian-Nubian shield between Egypt’s Eastern desert and the Sinai Peninsula is particularly rich with mineral resources including iron ore, steel, gold, marble, copper and limestone, as well as a number of other precious and base metals. Despite this, only one gold mine has been operative over the last 70 years suggesting that the sector is hugely underutilized today.
Keeping in line with the government’s overall initiatives to take full advantage of the potential within the country, a bid-round for new gold mining concessions was recently announced in an effort to revive the industry. Fortifying this industry would undoubtedly help to stimulate the country’s economy as well as generate more revenue from tax and increased foreign direct investment. Additionally, the sector would employ and train a large percentage of the population, particularly those within Upper Egypt where there is a high level of unemployment. Potentially, gold reserves within the country could provide more than 300 tonnes, and to help tap into this pool of opportunity, a more flexible Mining Law was issued, along with a governmental goal of expanding the mining sector to
reach 5 % of GDP by 2024.
Similar to the oil and gas sector, mine operation can commence through a profit-sharing agreement with the government. Below you will find an over view of some of the rules governing this sector: