Egypt’s Mining Sector Turns a New Page

Egypt’s Mining Sector Turns a New Page

Egypt’s mining sector is entering a new phase as the government accelerates reforms to attract investment, expand exploration, and unlock greater economic value from mineral resources. The program centers on modernizing legislation and institutions, improving the investment climate, streamlining licensing, and introducing incentives for exploration and exploitation. Beyond exporting raw minerals, Egypt aims to build local processing and value‑addition capacity, supported by stronger geological data, investor‑friendly regulations, and new partnership models. Through these reforms, the government targets raising mining’s contribution to  gross domestic production (GDP) from about 1 percent to 6 percent.

Reforming the Mining Investment Framework

A major step came in 2025 with Law No. 87 of 2025, which transformed the Egyptian Mineral Resources Authority (EMRA) into the Mineral Resources and Mining Industries Authority (MRMIA) as an independent economic entity. The new authority has greater financial and administrative independence and wider responsibilities for regulating production and exploitation, developing the mining industry, and attracting investment.

In November 2025, the government introduced incentives including lower annual exploration fees, tax and customs exemptions for exploration equipment and supplies, and a single license covering multiple minerals instead of separate licenses. Faster and lower-cost reconnaissance licenses were also introduced for startups and emerging mining companies. The reforms also involved a one-stop-shop mechanism, allowing investors to handle licensing and approval procedures through a single authority rather than dealing with multiple government bodies.

In 2026, amendments to the executive regulations further strengthened the framework by cutting exploration-area rental fees by up to 60%, limiting approvals to 30 days, allowing several minerals to be explored within one concession, and reducing MRMIA’s share in private-investor joint ventures from 25% to 10%. The amendments also clarified royalty rules, regulated geological testing laboratories, and expanded digital applications and payments through the Egypt Mining Portal.

Tarek Sedki, Expert Consultant in  Geology and Mining, described the changes as a shift toward a more investor-oriented model, saying “Egypt is moving from a largely government-driven and procedural mining model toward a more investor-oriented, competitive, and internationally aligned framework.” He added the reforms should improve the economics and predictability of mining projects, “provided the reforms are implemented consistently and efficiently.”

Hassan Bekheit, former Undersecretary of the Ministry of Petroleum and Mineral Resources (MoPMR), similarly viewed the measures as “a positive step toward developing the sector,” but stressed that their success should ultimately be reflected in “tangible outcomes and concrete figures on the ground.”

At the same time, Egypt has been upgrading geological databases and conducting modern geophysical and satellite surveys to reduce exploration risks and provide investors with better information on mineral potential.

Growing International Confidence in Egypt’s Mining Sector

The reforms have coincided with growing international and private-sector investment. In September 2024, AngloGold Ashanti acquired Egypt-focused gold producer Centamin in a $2.5 billion stock-and-cash transaction. Completed in November 2024, the deal brought Sukari Gold Mine, Egypt’s largest and first modern gold mine, into AngloGold’s portfolio. The Ministry described the acquisition as evidence of international confidence in Egypt’s mining investment climate.

Sedki said the “growing participation of major international players such as AngloGold Ashanti, Barrick and other companies is a positive indication that investors are responding to Egypt’s regulatory reforms and geological potential.” He added “companies returning to Egypt and committing fresh capital suggest that confidence is increasingly translating into concrete exploration activity and long-term commitments.”

Beyond gold, Egypt is pushing into value‑added mineral industries. In June 2025, agreements were signed for the $658 million Abu Tartur Phosphoric Acid Complex, designed to produce 250,000 tons per year (t/y) of high‑grade phosphoric acid from local ore. In May 2026, MRMIA partnered with Türkiye’s OZ Mining on a joint exploration mission in the Eastern Desert, while in June 2026 Cyprus‑based FMC announced plans to resume gold and mineral exploration with a $20 million investment over two to three years.

By July 2026, MRMIA, the New Valley for Mineral Resources and Oil Shale (Wadico), and Elsewedy Electric advanced plans for an integrated phosphate complex in Ain Sokhna, and MRMIA signed an MoU with Genesis Mining Egypt for a $930 million phosphate mining and industrial project in New Valley, targeting 20 million ton per year (mt/y) of mining capacity and 4 mt/y of beneficiation.

Together, these projects highlight Egypt’s drive to attract investment across the mining value chain, from exploration and extraction to beneficiation, processing, and mineral‑based industries.

Exploration, Bid Rounds and the Open Blocks System

Exploration is another key pillar of the reforms. The 2024 industrial-minerals bid round attracted 38 offers from 20 companies and resulted in six blocks being awarded to four companies for high-purity glass and kaolinitic sands.

In June 2026, MRMIA launched the Open Blocks System (OBS), a continuous licensing mechanism that allows companies to apply for available mining blocks throughout the year rather than wait for periodic bid rounds with fixed deadlines. The system covers gold and associated minerals, phosphate, talc, and kaolin.

Under OBS, once the first offer is submitted for a block, a 30-day competitive period opens for other companies to bid. Blocks receiving no offers remain available, while MRMIA can add new areas over time. The initial offering focuses on gold and associated minerals in the Eastern Desert, with blocks along the Arabian-Nubian Shield near Hurghada, Safaga, El Quseir, Marsa Alam, and Bernice, alongside phosphate, talc, and kaolin opportunities elsewhere.

“The Open Blocks System makes exploration continuous and responsive, letting companies apply year‑round without fixed deadlines. It complements traditional bid rounds by offering a flexible channel to attract investors and speed up allocations,” Sedki said. Bekheit also supported the OBS adoption, describing it as “a positive development”.

Not all the changes are 100 % welcomed, as part of Egypt’s new mining concession framework, the MRMIA requires a minimum 15% free participation in mining companies’ net taxable profit. Bekheit cautioned that this could place an additional burden on investors, particularly during the early stages of greenfield exploration, which carries high geological and financial risks. He suggested a more internationally competitive model based primarily on a royalty-and-tax framework to reduce the initial financial burden and encourage exploration capital.

He also warned that investor eligibility requirements could exclude smaller exploration companies. For example, requiring companies to demonstrate a production track record involving thousands of tons of gold could limit the participation of domestic companies. “Investor eligibility should focus on financial strength and technical capability, not only production track records, or Egypt risks excluding smaller domestic explorers that play a vital role in global mineral discoveries.” he stressed.

De-Risking Exploration with Better Data

Egypt’s licensing reforms are being reinforced by efforts to upgrade geological data. In March 2026, the Cabinet approved the country’s first airborne geophysical survey in more than four decades, spanning six zones to refresh geological mapping, pinpoint prospective mineral areas, and attract new investment. Two months later, MRMIA awarded Spain’s Xcalibur Smart Mapping the contract to carry out the survey using advanced aircraft, digital technologies, and AI, in partnership with the Nuclear Materials Authority and Drone Tech. The deal builds on a November 2025 MoU covering six regions, including the Eastern and Western Deserts, Sinai, Bahariya Oasis, and Abu Tartur.

Bekheit urged greater focus on smaller mining ventures, noting that “small‑scale mining should be treated as a vital part of Egypt’s development strategy.” He argued such operations can generate jobs and draw remote communities into the formal economy, provided they are supported with designated areas and tailored financial, technical, and environmental frameworks. He cautioned, however, that success hinges on “closing the gap between announced incentives and implementation on the ground.” Converting reforms into tangible investment flows, producing mines, higher exports, and value‑added industries will be essential if Egypt is to establish itself as a competitive mining destination regionally and internationally.

 

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Fatma Ahmed 2757 Posts

Fatma Ahmed is a staff writer with six years’ experience in Journalism. She is working in the field of oil and gas for four years. She also worked in the field of economic journalism for 2 years. Fatma has a Bachelor Degree in Mass Communication.

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