Egypt’s Minister of Petroleum and Mineral Resources, Tarek El Molla, has signed a contract between the Mineral Resources Authority and the Canadian company Aton Resources to explore gold ore and associated minerals in the Abu Marawat area in the Eastern Desert, according to a statement released by Egypt’s Cabinet.
The agreement follows the company’s commercial gold exploration in the Hamama Gharb and Rodrin areas, situated within the Abu Marawat concession and encompassing an area of approximately 58 square kilometers. Geologist Yasser Ramadan, Head of the Mineral Resources Authority, and Tony Hawkins, the Executive Director of Aton Resources, were present at the signing ceremony.
“The Abu Marawat mine holds a strategic reserve of up to 290,000 tons, offering a positive impact on the national economy as a promising mining site. Untouched areas still require exploration,” Nagy Farag, the advisor of the Egyptian supply minister for gold affairs, said.
Farag also confirmed Egypt’s gold reserves, reaching at least 25 million ounces.
Additionally, El Molla witnessed the signing of a contract between the Mineral Resources Authority and the British company AKH GOLD for gold exploration in a 350 square kilometers area covering the Bir Asal and Gebel El Maat regions in the Eastern Desert. This marks a significant expansion for the British company, as they invest in gold exploration in Egypt after successfully securing several areas in global gold exploration bidding during its first and second rounds.
The contract was formalized through the signing by Ramadan and Gerard de Hert, the Executive Director of the British company.
El Molla highlighted the positive impact of reforms in the Egyptian mining sector, emphasizing their role in attracting international investments for gold and precious metals exploration. He underscored accelerating research and exploration processes to achieve favorable outcomes.
Officials from both companies commended the current stability and positive investment climate in Egypt, citing the mining sector reforms as a crucial investment incentive. They affirmed their commitment to expediting investment inflows and initiating activities.
Egypt’s annual gold production stands at 15.8 tons, primarily sourced from the Sukari mine in the Eastern Desert, currently the country’s sole productive gold ore mine.
Amid a severe US dollar shortage, gold, a top haven in times of crisis for Egyptians, experienced record spikes last week, reaching EGP 3,886 per gram for 24-carat gold on Thursday.