Egypt is aiming to boost attractiveness for its mining sector to global investors, including Australia.
According to several Australian company heads hosted by Petrocast, the podcast of the Ministry of Petroleum and Mineral Resources (MoPMR), the country is looking at its untapped minerals potential developing infrastructure and implementing policy reforms.
The country is also reportedly targeting a 6 percent contribution to gross domestic product (GDP) by 2030.
“The opportunity to grow and expand exploration across the country, in both the eastern and western desert, is significant,” Egypt Oil & Gas Group quoted CEO of Australia-Africa Minerals & Energy Group (AAMEG) Doug Horak.
Among the expansions in the country’s power infrastructure is the construction of a 60-megawatt solar plant, in which 30 megawatts are currently operational.
“Part of Sukari’s power plan going forward is integrating not only with the grid but also with the renewable sector,” Horak added.
Besides these energy updates, Egypt’s Minister of Petroleum and Mineral Resources Karim Badawi reportedly announced a new incentive package aimed at attracting emerging and medium-sized Australian mining companies.
Under this new package are reforms such as the reduction of annual fees to make early exploration stages more viable.
Tax and customs exemptions for equipment, supplies, and related services are also included, with the main goal to position Egypt as one of the leading mining destinations in Africa and the Middle East.
Egypt’s resources
According to Egypt’s State Information Service, the country’s mineral wealth is divided into three sectors: energy, metallic and non-metallic.
One of the country’s biggest mineral resources is iron ore, with reserves amounting to 3.1 billion tonnes as of 2010 estimates.
The state reported that iron production reached about 3.93 million tonnes in 2011.
Gold, as in many countries, is also prevalent in Egypt. The World Gold Council placed it as the 38th top gold country in May 2012, with total gold reserves of 75.6 tonnes.
For corporate data, the state shared that there are about 57 companies in Egypt engaged in exploration, research, and production.
Out of these 57 companies, 8 are major global companies, 6 are specialized Egyptian companies and over 12 are international companies focused on petroleum services and technology.
The Ministry also announced 61 investment opportunities in August 2024, which included 34 exploratory areas under the Egyptian General Petroleum Corporation.
Investments under 15 areas of mature fields under the Egyptian General Petroleum Corporation and 12 exploratory areas in the Mediterranean and North Delta under the Egyptian Natural Gas Holding Company were also announced.
Arab News reported in June that Egypt’s mineral-wealth revenues surged 131 percent year on year to almost US$446 million in fiscal year 2024/2025, supported by strong gains in gold and silver output.
At the Egypt Mining Forum 2025, Badawi added that gold and silver production rose to 640,000 ounces, a 14 percent increase. This brought about US$1.54 billion in sales, around 57 percent more than the previous year.
Australian companies exploring Egypt
AngloGold Ashanti (NYSE:AU,JSE:ANG) is among the ASX companies known to host in Egypt, holding 50 percent rights to the Sukari gold mine.
The Egyptian Mineral Resource Authority (EMRA) holds the remaining 50 percent.
Sukari has mineral reserves of 2.41 million ounces of attributable gold and a production record of 40,000 ounces.
In September, Nex Metals announced that it had entered Egypt by becoming the operator of a currently gold-producing project in Egypt’s Eastern Desert, the North Hennai project.
A report by Arab Finance in September mentioned several Australian companies in talks with Egyptian officials, with Badawi holding bilateral meetings with specialised Australian mining companies to discuss investment opportunities in Egypt’s mining sector.
Included here was Asara Resources (ASX:AS1), which expressed interest in gold and precious metals exploration in Egypt. Marvel Gold was also said to be acquiring “promising areas” in Egypt for gold exploration and extraction.
Last November 27, a separate report by Egypt Oil & Gas Group said that Badawi also met with executives from three Australian firms: Capital Drilling, Hunter, and Bell Potter.
In the meeting, Capital Drilling was said to express its interest in expanding its mining-drilling operations in Egypt, including phosphate and gold exploration in the Southern Eastern Desert.
Egypt is set to launch a digital mining portal in the future, according to Badawi.
The platform will offer investors access to geological data, license information and available investment areas.
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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
