Egypt Eyes December for First Gold Mining Tender Since 2009
Egypt is filled with gold; looking to increase the mining sector's contribution to Egypt's GDP, the Petroleum Minister announces that Egypt will auction its first gold mining tender in December since 2009.
At an economic conference on Monday, Petroleum Minister Tarek El Molla announced that Egypt will hold its first international tender for gold mining concessions since 2009.
It’s no secret that Egypt’s land is filled with the gold, as their museums are filled with ancient Egyptian jewellery that was mined, purified, and assembled by ancient Egyptians. Sadly, today’s Egyptians do not mine their own gold. The only foreign company mining gold in Egypt is Centamin, who continues to discover more gold than they initially expected to find in the Sukari mine.
Last year, the government announced that it wanted mining to contribute more to Egypt’s GDP, which currently accounts for only one percent. According to Molla, Centamin has had to pay $40 million in profits and $80 million in concession fees since last July.
The last time Egypt offered tenders for mining gold was during a 2009 global gold mining boom, but many investors allegedly found the tenders unattractive, citing poor commercial terms. The sector remained undeveloped as whatever interest existed disappeared because of the 2011 uprising.
The first round of bidding is expected to take place in December and, considering that Centamin has surpassed expectations every year, there’s likely to be more interested, although better than selling tenders is developing Egypt’s own mining operation.