By: AGBI

Egypt will launch a nationwide aerial mineral survey in June, the first since 1984, petroleum and mineral resources minister Karim Badawi has said.

The survey is intended to provide reliable geological data to better assess mineral reserves, attract investment and speed up decision-making by foreign investors, the cabinet said in a statement, quoting a speech by Badawi at the OECD Critical Minerals Forum in Istanbul.

Cairo aims to increase mining’s contribution to gross domestic product to nearly 6 percent, from less than 1 percent, the minister said.

Badawi said the government is updating laws and contracts to attract investment in mining by offering incentives to large and medium-sized companies. 

In December, Cairo announced an incentive scheme and finally launched its delayed mining portal to attract foreign investors to the sector.

As part of the scheme, the government will cut annual fees and make exploration phases more viable by reducing initial costs, as well as offering tax and customs exemptions for exploration equipment, supplies and related services. 

The reforms were designed to transform Egypt into one of the top mining destinations in Africa and the Middle East, Badawi said.

In January, Badawi said China’s Hubei Xingfa Chemicals Group, one of the world’s largest phosphate producers, planned to invest nearly $2 billion to hunt for phosphates in Egypt’s “golden triangle” area. The golden triangle contains nearly 95 mineral deposits including gold, phosphates, copper, zinc, lead and limestone.