Tue, 16 Feb 2021 - 03:00 GMT
Tarek El-Molla, Egypt's Minister of Petroleum and Mineral Resources, speaks during an interview with Reuters at his office in Cairo, Egypt, October 29, 2015 – Reuters Photo
CAIRO – 16 February 2021: Ministry of Petroleum and Mineral Resources aims to raise the contribution of the mining sector to the gross domestic product (GDP) to 5 percent over the next five years, according to Oil Minister, Tarek El Molla.
Molla added in his statement to the House of Representatives, that the contribution of the mining sector to the GDP is "insignificant", and does not exceed half a percent only, which does not reflect the real capabilities of this sector.
He explained that the oil and gas sector contributed about 27 percent of the GDP during 2019, and 24 percent during 2020 despite the challenges of the Corona pandemic.
The minister emphasized that the results of the auctions recently put forward by Egypt are a real start for the mining sector, and reflect the success of the ministry’s efforts to encourage investors and transform the mining sector into an attractive sector for investment. “Especially after starting to implement the roadmap procedures that have been put in place to advance this sector since 2018, with the help of the largest global expertise houses.”
He pointed out that the latest and most successful global practices in the field of mining were relied upon to attract investment, which aimed to meet the challenges that the mining sector had previously experienced, and that it did not provide the desired return and performance in line with Egypt's mineral wealth.
Molla noted that there are many important measures that have been taken to successfully implement the Road Map, foremost of which is amending the legislative framework governing mining activities and practices, developing financial and investment models for contracting with investors, facilitating licensing procedures and implementing digital transformation, as well as developing the skills of cadres working in the mining sector to keep pace with new changes and developments in the sector.