Egypt discovers new goldmine in Eastern Desert with more than 1M ounces

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Tue, 30 Jun 2020 - 10:01 GMT

A Gold Mine – File Photo

A Gold Mine – File Photo

CAIRO – 30 June 2020: Egypt discovered new goldmine in the Eastern Desert, with reserves estimated at more than one million ounces of gold, according to Minister of Petroleum Tarek el-Molla.

Molla clarified in a statement Tuesday that the new discovery is located in the concession area of "Shalatin" Company for Mineral Resources.

The Egyptian General Mineral Resources Authority, the National Service Projects Authority, the National Investment Bank and the Egyptian Mineral Resources Company contribute to Shalatin.

"The extraction rate is 95 percent, which is one of the highest rates, and with total investments over the next ten years, more than $1 billion,” he noted.

The statement said that a new company will be formed between "Shalatin" and the Mineral Resources Authority to start operations in the disclosure area, to become the third company in Egypt working in extracting gold and accompanying minerals, in addition to Sukari Company for gold mines and Hamsh Egypt for gold mines.

Two companies are currently operating in Egypt to produce gold, which are Australian Pharaonic Company operating in the Sukari mine and the Cyprus-based Mats Holdings, which operates in the Hamsh mine. For exploration and drilling of gold, another two gold companies are operating in Egypt: Canada’s Aton Mining and the UAE’s Thani Dubai.

"It is intended to attract foreign direct investment within two years in the mining sector in Egypt, estimated at about $375 million, and to increase the expected direct investments in 2030 from 7$00 million to $1 billion,” the minster stated.

Gold production in Egypt exists in three sites across the Eastern Desert: Sukari Mountain, Hamash and Wadi al-Alaqi.

The Egyptian Mineral Resources Authority (EMRA) says the precious metal is present in 120 ancient sites, from old mines to other areas all in the Eastern Desert. Nevertheless, Egypt has few gold mining activities, with only one gold producing mine currently under operation: the Centamin- owned Sukari mine.

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