EMRA takes $195.1M on profit account from Sukari mine

CAIRO – 21 May 2018: Egypt has reached a total of $195.1 million on profit account from the Sukari Gold Mine since the start of dividing profits between Centamin Egypt Company and the Egyptian Mineral Resource Authority (EMRA) in October 2016 till April 2018, General Manager of Centamin Company Youssef el-Raghy said.

According to Schedule, Centamin Egypt, which operates the Sukari gold mine, is targeting to pay some $137 million to the Egyptian Mineral Resource Authority (EMRA) in 2018.

Raghy added on Monday that the Sukari mine’s total gold production has recorded 106.7 tons since the beginning of production in 2010 till last April, clarifying that April’s production reached 1.2 tons.

The Sukari Gold Mining Company targets producing around 560,000 ounces of gold in 2018, up from 550,000 ounces in 2017, he noted.

Raghy announced in April that gold production at Sukari mine has recorded 105.5 tons at the end of March since 2010.

Exports of Sukari Gold Mine represent 2 percent of the Egyptian exports balance, according to Centamin official reports.

Two companies are operating in Egypt right now to produce gold, which are Australian Pharaonic Company that operates in the Sukari mine and Cyprus-based Mats Holdings, which operates in the Hamsh mine.

For exploration and drilling of gold, other two gold companies are operating in Egypt, which are Canadian Aton Mining and UAE’s Thani Dubai.

In accordance with the terms of the Concession Agreement, EMRA is entitled to share 50 percent of the Sukari mine’s net production surplus.

The government said earlier that it aims to increase the mining sector's contribution to the GDP to more than 5 percent. It currently contributes around 0.5 percent of the GDP.

Minister of Petroleum & Mineral Resources Tarek el Molla said that the government is working to identify the challenges facing the sector and that his ministry aims to boost investments by amending the sector's administrative and legislative systems.

Located in the south-easternmost region of the Eastern Desert, Sukari mine is the first large-scale modern gold mine in Egypt, with a base case production rate of about 500,000 ounces per annum, according to the official website of Centamin.

Sukari Gold Mine, the country's sole gold-exporting mine, started operations in January 2010, with an average monthly production of 1.2-1.5 tons of gold.