Egypt in negotiations with gold companies to finalize terms of gold exploration agreements

Canada’s Barrick Gold, and Australia’s Centamin, international gold-producing entities, are negotiating with Egypt’s Ministry of Petroleum to finalize gold exploration agreements’ terms, according to local media reports citing unnamed high-level sources.

Local media reported that the negotiations are currently underway between those entities and the government revolve around royalty, tax rates among others. Some entities expressed their desire to have fixed tax rates, concerning that it would be increased later on.

Egypt put forward a huge international bid for gold exploration and exploitation in the Eastern Desert in 2020, which was won by 11 companies, with investment commitments amounting to $60 million in the first stage.

The sources told local media that most of the winning companies in the first round of the recent bidding received their concessions and started exploration. Centamin and Barrick Gold are at the forefront of negotiations with the government to settle on the model of the exploitation and production agreement.

Earlier this year, the Egyptian Ministry of Petroleum and Mineral Resources stated that they are launching an international bid for gold exploration allowing Egypt the rights to explore for gold in the Eastern Desert through the state-run Shalateen Mineral Resource Company (SMRC).

Egypt seeks to invest at least $1 billion in the mining sector by 2030, in order to expand the use of mineral resources.