The Egyptian Ministry of Petroleum & Natural Resources and the Egyptian Mineral Resources Authority (EMRA) have reached an agreement with Centamin pertaining to the fiscal and regulatory terms for the commercialization of mineral discoveries within the Eastern Desert of Egypt blocks (EDX blocks).
The region is highly prospective and holds significant potential for mineral exploration.
The model mining exploitation agreement awaiting approval by the Egyptian parliament – will be adopted into law in late 2023 and provide Centamin with a 30-year licence to explore, develop and monetize mineral resources in the Nugrus, Um Rus and Najd blocks. Centamin was awarded a tender to explore the EDX blocks in year 2021.
Under the agreed terms, Centamin will be subject to a 22.5% corporate tax rate and will allocate 0.5% of total project revenues towards community developments. Additionally, the company will direct 15% of its net profit to the government and make a commitment to support local content development throughout the project’s lifespan.
“These terms lay the foundation for developing Egypt’s mining sector, unlocking the undoubted geological potential within the country,” said Martin Horgan, CEO of Centamin.
Egypt has set a target to generate 5% of its gross domestic product growth from the mining industry by year 2030. The sector’s contributions will extend to employment creation, local workforce education and training, and direct financial and infrastructure investment.