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In the ancient Egypt of the Pharaohs, gold was one
of the first metals to be explored.
Indeed, the world's reputedly oldest geological map,
dating from around 1200 B.C., shows Egyptian gold mines
in the country's Eastern Desert area. But there has
been no major mining in Egypt for millennia, which means
that the potential for sub-surface discoveries –
gold in particular – is substantial.
Centamin Egypt, an Australian-based company led by
an Egyptian-born geologist has revisited the Eastern
Desert and is soon to be rewarded for its efforts.
Since 1994, the company has been developing the Sukari
deposit, which after exploration of a small part of
the concession, holds proven resources of 10 million
ounces of gold so far.
A $216-million processing plant to be built this year
will allow production to commence by 2008.
Aside from the logistical difficulties of mining in
remote areas, the Egyptian government's existing profit-sharing
requirements may have also helped to keep mining companies
away. But the current reform movement, initiated in
2004 by the Egyptian Ministry of Petroleum jointly with
the International Financial Corporation (IFC) the World
Bank, are likely to provide a new legal framework and
mining code that will encourage more activity in this
sector, potentially bringing in massive investments
and providing a huge source of employment. It is worth
mentioning that the new technologies in mineral resources
exploration have played a major role in boosting this
industry.
| Production
in 2008 is expected to reach eight tons, against
seven tons throughout the entire 20th century |
Indeed, mining companies are already beginning to
enter the lists. Another Australian mining company,
Gippsland Ltd, is also drilling in the Eastern Desert,
as is Cyprus-based Matz Holding, which has concluded
the development of a mine thought to contain total good
reserves. The Egyptian Mineral Resources Authority (EMRA)
has issued a bid round for nine gold blocks last year
and which resulted in six Gold exploration agreements
in the Eastern and Western deserts, at an area of 6800
km2, with investments of about $29 million. Aside from
the obvious attraction of gold and other noble metals,
the main national productions in terms of volume output
are iron ore, phosphates and salt.
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