Entrance to the Sukari gold mine in Egypt – archives
Egypt’s economy
The annual production rate of the advanced company should exceed 500 thousand ounces
The Shalateen Mining Company, which is affiliated with the Egyptian Ministry of Petroleum and Mineral Resources and other government agencies, has set technical conditions for companies applying to the global gold bid that it recently put forward, limiting participation in the bidding to major international companies with a long history in mining.
The conditions stipulate that the bidding companies must have at least 10 years of experience in exploring and exploiting licensed mining areas, and that the working group – who are technicians and specialists in health, safety and the environment – have cumulative experience of more than 100 years, in the field of exploitation and exploration. Mining sites, according to the Egyptian newspaper “Al Borsa”.
According to the bidding conditions published on the company’s website, the company’s bidding gold reserves should not be less than 10 million ounces, and the company’s annual production rate should exceed 500,000 ounces.
The bidding company is committed to spending the pledged investments throughout the three phases of exploration, which will last for six years, with each phase being two years.
Shalatin’s share of production is calculated after royalties amounting to 5%, cost recovery and the share of the Mineral Resources Authority, and the revenue sharing is as follows: 65% cost recovery and 35% profit sharing.
The profits expected to be shared after cost recovery and royalties are distributed by 31% to the Mineral Resources Authority, less than 20% to Shalatin and 49% or more to the winning company.
On April 7, the Shalateen Mining Company announced the launch of bids in five exploration areas in the Eastern Desert, which are Fatiri, Al-Baramiyah, Umm Oud and Hamata contracts, and the bidding process will continue until August 10.
Sources in the mining sector stated that the conditions approved by the company in the booklet of conditions make it difficult for small and medium-sized companies to compete, which enhances the targeting of large companies.
Amr Hassouna, executive director of the Sukari Gold Mines Company, told Daily News Egypt that Centamin is considering participating in the gold prospecting bid put forward by Shalatin Mining Company.
Tariq Al-Mulla, the Egyptian Minister of Petroleum and Mineral Resources, announced, on March 21, the start of experiments to operate the commercial production of gold from the “Iqat” site in southern Egypt, whose reserves are estimated at about 1.2 million ounces of gold, and the extraction rate is 95% and is considered one of the highest extraction rates. .
During an inspection of the stages of work and production at the “Iqat” site, Al-Mulla explained that the site is characterized as a pure Egyptian investment in the field of gold exploration and exploitation through the Egyptian Shalateen Company, which is witnessing a successful partnership with the Egyptian private sector.
In a statement, he indicated that the Iqat Gold Mines Company was established between Shalatin, the Mineral Resources Authority, and the Wealth and Resources Mining Company in charge of work in the detection area, and then work began to establish highly efficient facilities and infrastructure and operate it.