Egypt is Africa’s well know country for its high mineral potential. Nearly all sorts of industrial minerals exist in profitable amounts. Various metals are mined in Egypt and the most notably among them are gold, copper and iron. The mineral resource development in Egypt is organized by the Egyptian Geological Mining and Survey Authority (EGMSA).
As per Egyptian Minister of Petroleum, Abdullah Ghorab, 80% of the country’s oil and mining wealth has not yet been discovered particularly in the offshore areas of the Mediterranean and in the Western Desert. According to Hassan Helmy, Professor Geology Dept., Faculty of Science, Minia, Egypt will have sooner or later more than 5 operating world-class gold mines.
Many of the companies progressed well in mining and drilling of rare and precious metals in Egypt and one among them being Egypt-focused miner Centamin Plc. and its flagship Sukari gold mine. According to the Ministry of Petroleum’s website the production of gold in Egypt stopped progressing between 1958 and 2007, but Centamin and its Sukari Gold Mine rose to production in 2009 with a projected annual gold output of 250,000 oz.
Egypt attempts to regenerate its mining industry is with the intention of catching the attention of investment capital, increasing revenue and boosting the country’s overall economy. A strategy was approved by Egypt’s Prime Minister Hisham Qandil to develop the mineral resources sector, outlined by the Mining Renaissance Association (MRA). A memo was sent by the Cabinet Secretary regarding the issuance of a unified law for mining and, drawing up a mining map that would be available to investors.
Touted to be the world’s largest drilling and mining conference, The Prospectors and Developers Association of Canada’s (PDAC)”2013, to be held this year in Toronto, Canada, Egypt will have a delegation taking part in. The conference will also be attended by thousands of investors, officials and the elite from oil drilling and mining companies. Canada Egypt Business Council (CEBC) had organized a delegation to attend the conference in order to show attendees about the latest developments and investment opportunities in Egypt. Moatez Raslan, President of CEBC, said that the delegation’s intention is to look for and to promote foreign investment for drilling projects in Egypt. This step is being taken to provide Egyptian businesses with a great opportunity to advertise and promote Egypt as a lucrative destination for investment.
All in all, in Egypt there is a great opportunity and need for:
- Investing in the mining sector
- Equipment used to extract the materials
The mining equipment is important for the growing mining industry and naturally there would be a large demand for the manufacturing, assembly, and distributors of such equipment.
The “Shalateen Mining Company” which operates under the patronage of the Mineral Resources Authority, focuses its work at the Shalateen and Red Sea regions in order to benefit from the old and abandoned gold mines. According to recent studies the soil sediment in the region contains gold deposits. The project requires new technology and the latest drilling and excavation machinery.
There have been discussions in the Egyptian drilling service sector regarding economical and efficient usage of low costs equipment with high quality, providing a long-term return on investments. Many of the companies are finding it tough to increase the profits, while still delivering quality to its operators. The Egyptian market is flooded with barrage of complaints about the efficiency of the equipment, product follow-up service, engineering services and costs.
There are many more indicators that the Egyptian mining sector is emerging as high-potential place for investment and also there is bound to be a demand for mining equipment that would be very vital for an accelerated growth, and there is a need to adopt global sourcing.
Brickwork Sourcing works with many mining and drilling companies and has capabilities of providing end-to-end sourcing as well as vendor and supply chain management solutions.
will the sourcing of low cost mining equipment hamper the growth of mineral market in Egypt?