Biggest gold discovery in Egypt's Eastern Desert
Egypt, Economics, 10/31/2001

The Egyptian Minister of Industry and Technological Development Mustafa Refaie announced the discovery of large quantities of gold in Egypt's eastern desert area of el-Sokkari that would yield some US$ 1 billion a year, adding that this will place Egypt on the map of the world's leading gold-producing countries.

In a press conference, Refaie said this is a highly profitable discovery that includes various wealth of gold, silver and other precious metals. The expected reserves amounts to some 16 million ounces.

The Australian company Pharaoh has signed an agreement with the Ministry of Industry and the Geological Survey Authority (GSA) whereby the Australian company was given a concession in a 3,000km area in the eastern desert through the establishment of a joint stock company with the GSA carrying the name 'Sentamine Egypt'. The People's Assembly has approved the agreement, the minister elaborated.

He said the State will not bear any extraction costs and will get 3%of the revenues and 40% of the profits achieved in the first and the second years and 45% in the third and fourth years to rise to 50% after that.

By this discovery, Egypt's annual gold production is expected to rise to 150-200 tons. He said total investments of the project amounts to US$ 700 million, to be regained in three years of operation while annual production value, after the eighth year of starting production, will reach US$943 million. The project will also require operating ten mines, providing 30,000 jobs.

Sami al-Ragehy, owner of the Pharaoh Company, said the production of the project will begin after six months, adding that the Australian company has been working in Egypt over the past nine years in the field of research and studies.

Previous Stories:
  Mubarak inaugurates Oyoun Moussa Power Station   (10/30/2001)
  Egypt, US discuss furthering economic, investment cooperation   (10/30/2001)
  Egypt prepares for facing global challenges   (10/30/2001)

Please add a link on your webiste pointing to ArabicNews.com and bookmark ArabicNews.com & subscribe to our daily email news bulletin.

Search