Egypt approves improved mining investment law

Egypt’s cabinet has endorsed an improved mining investment law, part of a wider strategy to attract more capital and boost the sector’s contribution to the domestic economy.

Key new incentives in the new law, under debate for more than a year, include reducing the mining site lease by 60 percent for investors and cutting the required minimum government shareholding in the project from 25 to 10 percent.

“These amendments are part of a strategy aimed at creating an attractive investment environment, achieving optimal use of natural resources, and increasing the contribution of the mining sector to the national economy,” the petroleum and mineral resources ministry said in a statement.

The decision to lower the site lease is intended to ease the financial burden on investors during the early stages of projects, encourage the expansion of research activities and increase exploration opportunities, the ministry said.

It added that lower public shareholding would lure more investors into the mining industry, and that the new rules also include speeding up the issuance of mining licences to investors to a maximum 30 days.

Egypt’s petroleum and mineral resources minister Karim Badawi said last year that the planned mining law aims to boost the sector’s contribution to GDP by nearly 12 times.

Badawi told Egypt’s parliament that the mining sector currently contributes about 0.5 percent to gross national product and the target is to expand that share to 6 percent by the end of the Vision 2030 agenda.

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“We are in the process of issuing the new law, which illustrates efforts to improve the investment atmosphere and create a strong framework that will serve the interests of all parties concerned,” Badawi said.

Egypt, locked in International Monetary Fund-recommended reforms, stepped up its mining investment drive in 2024 with the creation of a landmark mining portal.

The portal includes maps and data for investors seeking to embark on mineral projects and covers 27 metals, including gold, zinc and iron, adding that Egypt is rapidly becoming a key metal producer and exporter.

In 2023, Egypt’s metal production stood at about 13 million tonnes and exports exceeded 2.3 million tonnes.