Sayed El-Abnody writes: Ministerial Intervention Needed to Save Egyptian Mining Before It’s Too Late

Amid urgent challenges and complex situations faced by the Egyptian mining sector, all eyes are on Engineer Karim Badawy, the new Minister of Petroleum and Mineral Resources, with high hopes pinned on his ability to rescue this vital sector before time runs out

Save Egyptian Mining Before It’s Too Late

The sector suffers from entrenched and complex bureaucracy, which has led to hesitation and withdrawal of some serious investors

There are fears that some of the world’s largest mining companies, such as Barrick Gold, may flee. These companies are awaiting the signing of agreements, the amendments to which were announced at the Mining Conference in July 2023

Despite the ministry’s announcement that solutions satisfying all parties had been reached, a full year has passed since these announcements, and neither Barrick Gold, Centamin, nor other major companies have signed the amended agreements

The reasons behind this delay are shrouded in mystery, but it seems that heavy bureaucracy, involving legal, financial, and administrative aspects, plays a significant role in this disruption

On another note, Newmont Mining Corporation, the world’s largest mining company, has expressed interest in entering the Egyptian market but remains cautious about the entrenched bureaucracy in Egypt’s mining sector

The company is waiting to see what Barrick Gold does in Egypt before making its final decision, reflecting the impact that the actions of major companies can have on others’ decisions in the market

Furthermore, there are fundamental questions about the role of the Mineral Resources Authority in managing its accumulated assets across various provinces, and the steps it has taken regarding the assessment and confirmation of phosphate reserves ordered by Prime Minister Dr. Mostafa Madbouly two years ago to establish value-added factories

What about the auctions on mining materials previously announced by the authority, the gold bidding, and the  reservations of the rich areas؟

The importance of knowing what will happen at the mining conference scheduled for July 16, expected to be attended by the world’s top mining investors, cannot be understated. Will this conference proceed as planned, or will it be canceled or postponed?

Time is running out for the new minister, who must take concrete and swift steps to address these issues, improve Egypt’s global image in the mining sector, and eliminate pervasive bureaucracy

It’s also crucial that the minister urgently works to ensure the signing of pending agreements and improve the regulatory framework to attract more serious investments that can benefit Egypt’s economy

The future of Egypt’s mining sector depends on the ministry’s ability to turn challenges into opportunities and achieve a breakthrough in investments and technologies that can enhance this vital sector