By: The Middle East Observer

Cairo, Egypt is set to bring the Abu Marawat project into commercial production in 2026, potentially making it the country’s second modern commercial gold mine after Sukari and reinforcing Cairo’s strategy to expand mining as a source of investment, exports and industrial growth.

The project, developed through a joint venture between the Egyptian Mineral Resources and Mining Industries Authority and Canada’s Aton Resources, is expected to begin with the Hamama West deposit before expanding across the wider Eastern Desert concession.

Current certified reserves for the initial mining licence comprise about 134,900 ounces of recoverable gold and 1.4 million ounces of silver, with further exploration offering additional upside across the district.

Officials say Abu Marawat will support domestic gold output, attract foreign mining capital, create direct and indirect jobs, and stimulate economic activity in the Red Sea and Qena governorates. It also reflects Egypt’s efforts to modernise its mining concession framework and draw international exploration companies into one of the region’s most promising mineral belts.

The announcement comes as global gold prices remain volatile. Bullion slipped below $4,100 an ounce during Wednesday’s trading, despite renewed regional tensions around the Strait of Hormuz, as a stronger dollar and interest-rate expectations weighed on safe-haven demand.

In Egypt, retail prices moved higher, reflecting local market dynamics. Benchmark 21-carat gold rose by about EGP40 to around EGP5,810 per gram, while 24-carat gold reached approximately EGP6,640, 18-carat traded near EGP4,980, and the gold pound stood at about EGP46,480.

Beyond increasing domestic gold output, Abu Marawat will serve as an early test of Egypt’s mining reforms, with its success likely to influence future foreign investment across the country’s largely underexplored Eastern Desert.