By: Investing news network

The country has announced a new incentive package aimed at attracting emerging and medium-sized Australian mining companies.

Pipeline valve with Egyptian flag colors and emblem.

Egypt is aiming to boost the attractiveness of its mining sector to global investors, including Australians.

Speaking on Petrocast, the podcast of Egypt's Ministry of Petroleum and Mineral Resources, several Australian company leaders said Egypt is becoming more appealing due to its untapped potential and sector reforms.

The country is reportedly targeting a 5 to 6 percent contribution to GDP by 2030 for the mining industry.

“The opportunity to grow and expand exploration across the country, in both the eastern and western desert, is significant,” Egypt Oil & Gas Group quotes Doug Horak, CEO of Australia-Africa Minerals & Energy Group, as saying.

The executive also pointed to improving infrastructure, including the country's construction of a 60 megawatt solar plant, 30 megawatts of which are currently operational.

“Part of Sukari’s power plan going forward is integrating not only with the grid but also with the renewable sector,” Horak added. Sukari is a gold mine partially owned by AngloGold Ashanti (NYSE:AU,JSE:ANG).

Besides these updates, Karim Badawi, Egypt’s minister of petroleum and mineral resources, recently announced a new incentive package aimed at attracting emerging and medium-sized Australian mining companies.

The package includes reforms such as the reduction of annual fees to make early stage exploration more viable.

Tax and customs exemptions for equipment, supplies and related services are also included, with the main goal being to position Egypt as one of the leading mining destinations in Africa and the Middle East.

Egypt's mineral wealth

The State Information Service divides Egypt's mineral wealth into energy, metallic and non-metallic resources.

One of the country’s biggest mineral resources is iron ore, with reserves amounting to 3.1 billion tonnes as of 2010 estimates. The state reported that iron ore production reached about 3.93 million tonnes in 2011.

Egypt was also the 38th top gold-producing country as of May 2012, with total gold reserves of 75.6 tonnes.

There are about 57 companies in Egypt engaged in exploration, research and production.

Out of these 57 companies, eight are major global companies, six are specialized Egyptian companies and over 12 are international companies focused on petroleum services and technology.

The Ministry of Petroleum and Mineral Resources announced 61 investment opportunities in August 2024, including 34 exploratory areas under the Egyptian General Petroleum Corporation.

Arab News reported in June that Egypt’s mineral wealth revenues surged 131 percent year-on-year to almost US$446 million in 2024/2025 fiscal year, supported by strong gains in gold and silver output.

At the Egypt Mining Forum 2025, Badawi added that gold and silver production rose to 640,000 ounces, a 14 percent increase. This brought about US$1.54 billion in sales, around 57 percent more than the previous year.

Egypt sparks interest for Australian miners

As mentioned, AngloGold Ashanti is a key player in Egypt's mining industry, with a 50 percent stake in the Sukari gold mine. The Egyptian Mineral Resource Authority holds the remaining 50 percent.

Sukari's mineral reserves attributable to AngloGold stand at 2.41 million ounces.

In September, Nex Metals Explorations (ASX:NME) announced that it had entered Egypt by becoming the operator of North Hennai, a gold mine located in the country's Eastern Desert.

An Arab Finance article published in September mentions that several Australian companies were in talks with Egyptian officials about investment opportunities in the nation's mining sector.

Those include Asara Resources (ASX:AS1,OTC Pink:GMRMF) and Marvel Gold (ASX:MVL,OTC Pink:GRXMF), which was said to be seeking “promising areas” in Egypt for gold exploration and extraction.

In addition, Egypt Oil & Gas Group reported on November 27 that Badawi met with executives from three Australian firms on a visit to the country: Capital Drilling, Hunter and Bell Potter.

Capital Drilling reportedly expressed interest in expanding its mining-drilling operations in Egypt, including phosphate and gold exploration in the Southern Eastern Desert.

Egypt is set to launch a digital mining portal in the future, according to Badawi.

The platform will offer investors access to geological data, licence information and available investment areas.