Gold and oil: Egypt's rising stars in the global mining scene

Egypt is increasingly becoming a hotbed for the mining industry. Besides newly discovered oil deposits, gold – a resource over which the pharaohs historically waged bloody wars with neighboring Nubia – is also gaining ground. A fresh exploration agreement has recently been signed in Cairo.

The Egyptian Mineral Resources Authority has signed an agreement with the Canadian-based Lotus Gold Corporation to prospect for gold across three sectors spanning roughly 203 square miles. The contract stipulates that the Canadians commit to an investment worth 2.5 million dollars in the Nile country, reports "Daily News Egypt".

For the last few years, Cairo has increasingly prioritized the development of its mining industry. In 2020, Egypt inked agreements with Lotus Gold Corporation to explore seven sectors, covering an area of about 471 square miles in total. Companies like AKH Gold and Ibdaa Gold are also participating in the exploration.

Gold prospectors are focusing primarily on the Eastern Desert where, in 2020, a deposit was discovered with reserves estimated to exceed one million ounces. That was when Egypt's authorities announced plans for boosting the mining industry. Cairo, as reported by "Rzeczpospolita", believes that by 2030, foreign businesses will be enticed to commit one billion dollars of investment in the country.

In February of the current year, Egypt, as conveyed by Hurghada 24, produced its first gold bar derived from domestic mining. The precious metal was sourced from the Igat mine located in the above-mentioned Eastern Desert.

"Arab News", while reporting on the new agreement with Lotus Gold Corporation, highlighted that Egypt recently discovered oil reserves. In August 2023, the Egyptian company, Cheiron, uncovered new deposits in the Gulf of Suez.

Furthermore, the country plans to bolster its mineral sector with a gas drilling initiative worth 1.8 billion dollars. This ambitious plan involves the execution of 35 new gas drills in the Mediterranean Sea, Nile Delta and the Western Desert by 2025, as reported by "Arab News".

The Egyptian authorities have substantial reasons to pump resources into the mining industry. Its economy primarily relies on tourism, which can become precarious, as demonstrated by the escalating economic fallout following the coronavirus pandemic.