Egypt signs gold exploration contract with Canada’s Aton Resources

The Egyptian Mineral Resources Authority (EMRA) has signed a contract for the exploitation of gold ore and associated minerals with Canada’s Aton Resources in the Abu Marawat area of the Eastern Desert, the pet according to a ministerial statement.

The contract was formalized following Aton Resources’ commercial discovery of gold in the Hamama Gharb and Rodrin areas, covering 58 square kilometres within the Abu Marwat concession. The financial details of the deal have not been disclosed yet.

Egypt also signed a gold exploration contract with Britain’s British Akh Gold Company to explore gold at a 350-km area in the B’ar Asel and Gabal al-Mayat areas in the Eastern Desert, it said.

During the signing ceremony, the Canadian and British officials hailed the stability and positive investment climate enjoyed by Egypt, especially after recent reforms in the field of mining.

During the signing ceremony, El-Molla emphasized the importance of expediting gold exploration operations to achieve favourable outcomes. He also highlighted Egypt’s favourable investment climate, which has attracted foreign mining companies and encouraged greater mineral exploration.

According to the World Gold Council, Egypt produces 15.8 tons of gold annually, most of which comes from the Sukari mine in the Eastern Desert. The country has an estimated 270 gold sites, including 120 active sites and mines from ancient times.

The Egyptian government initiated several tenders for gold and precious metal mining throughout 2023 and it is expected to launch a new international bid for gold exploration in the latter half of 2024.

Last June, a report by the British Egypt Business Association said El Molla plans to raise the mining sector contributions to Egypt’s gross domestic product (GDP) to more than $20 billion by 2040 and to increase exports from $1.6 billion in 2020 to $10 billion by 2040.