Billionaire #Sawiris Hopes to Join #Egypt #Gold Rush as Rules Eased $AAN.v $EDV.to $CEG

Billionaire Sawiris Hopes to Join Egypt Gold Rush as Rules Eased

Mirette MagdyFebruary 18, 2020, 5:39 AM EST

Chairman of La Mancha in talks with government over new tender

One of Egypt's richest men has long coveted a role in his nation's gold-mining industry. Now, a shakeup in regulations and a potential auction of new licenses could give Naguib Sawiris a shining opportunity.

The Egyptian government "already started talks with us as well as other companies to promote the new tender," Sawiris, the chairman of La Mancha Holding S.a.r.l., said in a phone interview. "We are willing to participate in any area that could be promising." He didn't specify which of the firms he's involved with would submit bids.

The North African country, where the mineral wealth remains largely under-explored and undeveloped, will announce its first exploration tender in about three years by March, according to a person with direct knowledge of the plans.

It's Egypt's latest drive to spur investment in the sector, after enacting rules last month that limit royalty payments and drop the requirement that miners form joint ventures with the government -- steps foreign companies have long complained about. Ramping up gold output would be a future source of growth for the economy, which is emerging from a sweeping International Monetary Fund-backed reform program.

Photographer: Sima Diab/Bloomberg

Sawiris, who hails from an industrialist family, made his name investing in telecommunications in Egypt as well as frontier markets such as Iraq, Pakistan and North Korea. Egypt's second-richest person, with a net worth of $5.1 billion according to the Bloomberg Billionaires Index, Sawiris' closely held gold-miner La Mancha is the biggest shareholder of Toronto-listed Endeavour Mining Corp., which operates in Ivory Coast, Burkina Faso and Mali.

#Egypt #Mining: Minster sends Mineral #Resources Act to Parliament for review , hoping to end current outdated framework better suited to oil & gas

the amendments were made primarily to draw investments in the flagging mining sector, which holds world-class potential, but is hobbled by an outdated economic framework better suited to the oil and gas industry. El Molla noted that the ministry will begin immediately implementing the reforms laid out by consultancy Wood Mackenzie as soon as the House passes the amendments. 

Mineral Resources Act sent to House for review

Monday, 19 November 2018

LEGISLATION WATCH- Amendments to Mineral Resources Act sent to House: The government has sent long-awaited draft amendments to the Mineral Resources Act to the House of Representatives for review, Oil Minister Tarek El Molla said. El Molla reiterated that the amendments were made primarily to draw investments in the flagging mining sector, which holds world-class potential, but is hobbled by an outdated economic framework better suited to the oil and gas industry. El Molla noted that the ministry will begin immediately implementing the reforms laid out by consultancy Wood Mackenzie as soon as the House passes the amendments. Wood Mackenzie had been contracted by an affiliate of the Oil Ministry to lay out an appropriate development strategy for the sector.

El Molla expects the law's executive regulations will be issued within six months of the bill passing in the House of Representatives and being signed into law by President Abdel Fattah El Sisi.

Background: While few details of the bill have been revealed, we expect it will see Egypt scrap its oil-and-gas-style production sharing agreement and move to a tax, rent and royalty model, eliminating the requirement that miners enter into 50:50 JVs with the sector's regulator. It's also expected to allow exploration companies to acquire exploration ground without first obtaining exploration licenses. The amendments, which aim to attract significant foreign interest in the nation's mining sector, have been praised by industry leaders.

See the article online here: https://enterprise.press/stories/2018/11/19/mineral-resources-act-sent-to-house-for-review/