ESG

Egypt poised to open door to explorers

Egypt is reportedly preparing to invite international gold mining companies to take part in a new exploration tender next month.

Staff reporter
 Aton Resources says its Rodruin prospect in Egypt has “clear evidence of a major ancient mining centre”

Aton Resources says its Rodruin prospect in Egypt has “clear evidence of a major ancient mining centre”

The North African country has eased the rules to woo investors and the tender would be announced by early March, according to a person familiar with the matter, Bloomberg reported.

The news follows Canada-based Aton Resources (TSXV: AAN) last week receiving a mining licence for its Hamama deposit, which president and CEO Mark Campbell said was the only the second mining licence issued since Centamin's and was "historic news for Aton and Egypt".

He believed the licence approval was pointing the way to a bright future for exploration and mining in Egypt and had said the company was "eagerly" looking forward to participating in the upcoming exploration tender.

Cairo-based Campbell had outlined his views on Egypt's landmark amendments to its mining laws in January.

"To me, the epic change here is the government getting rid of the oil and gas Production Sharing Agreement (PSA) and going to a tax, rent and royalty regime," he said at the time.

"One huge result of scrapping the PSA, which never recognised the differences between the industries in terms of economics, is that it gets rid of the 50% JV and the involvement of the government in companies' businesses.

"What is happening now is the creation of an environment that will compete with the rest of the world to attract exploration companies like Aton to invest in Egypt.

"Aton has persevered over the years, because we believe in Egypt, which has a great story to tell and abounds with opportunity."

Sukari is Egypt's only operating mine and produced 480,529 ounces of gold in 2019, according to Centamin (LSE: CEY), which operates the joint venture 50%-owned by Egyptian Mineral Resource Authority.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.

editions

Mining Journal Intelligence Global Leadership Report 2023: Social licence

Gain insights into social licence trends and best practices from interviews with 20+ top mining company executives and an industrywide survey.