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Mineral exploration should be incentivised so that South Africa’s great mineral endowment can be optimally leveraged to lower unemployment, improve export revenues, and strengthen this country’s gross domestic product (GDP).

That is the view of Industrial Development Corporation (IDC) mining, metals and beneficiation head Thabiso Sekano.

“Our country is indeed endowed with minerals, but we haven’t actually explored it that well,” said Sekano, who spoke to Mining Weekly in a Zoom interview. (Also watch attached Creamer Media video.)

He expressed the view that government, through the Department of Mineral Resources and Energy and the Council for Geoscience, needed to get to a point of being able to leverage the benefit of the minerals in this country.

He expressed the belief that an important relationship hinged on government and the private sector reaching a point of effectiveness.

“Private partnership with the State is what is needed. If you go to a typical bank in South Africa, you will find that banks are not interested in funding exploration in the early-stage phase,” said Sekano.

“Banks are more interested in projects that are about to be implemented and have been proven. But the challenge for a DFI such as ourselves, which gets involved in early-stage exploration projects, is that we cannot do this on our own. We need the private sector to be involved as well,” he stated.

He expressed the view that private sector companies could be given tax breaks of some kind to encourage exploration because many minerals in South Africa are untouched.

On the economic benefits that could accrue to South Africa from exploration, Sekano drew attention to mining’s role as a significant employment and supply chain flywheel.

“When we look at the real benefits of exploration, they include the long-term benefits of the project ultimately being implemented and this includes employment and regional economic development. What must also be taken into account is mining’s contribution to South Africa’s GDP,” he said.

Mining Weekly: Last year the Economic Transformation Committee of the African National Congress said in its document on reconstruction and growth that “the listing of mining companies on the Johannesburg Stock Exchange should be encouraged and South African retail investors willing to invest in mining exploration should be incentivised, as is the case in other mining jurisdictions”. Everybody seems to agree with this sentiment, so why is it not happening?

Sekano: It’s a tough market, I think, and companies are focusing their energies on projects that have got quick economic benefit for them. Other companies are moving into other geographies like South America. But exploration is a very important thing for South Africa to have. Proper exploration comes with all those benefits of employment and all the economic benefits we need as a country. The issue of poverty and unemployment in South Africa is a very serious issue that I’m personally passionate about trying to fix and it is my job now, within the IDC, to try and ensure that we reduce unemployment as far as possible. I’m not absolutely certain why exploration is not happening at the pace that we expect it to happen, but in future, we should be able to incentivise companies to do exploration and to tap into South Africa’s mineral endowment.

Mining Weekly: Small companies are not being supported on the Johannesburg Stock Exchange. Do you agree that investors should be incentivised to invest in small companies on the JSE?

Sekano: I agree. A typical small company or junior mining company faces serious lack of capital challenges when trying to list. This is a chief thing for the IDC to focus on - all these companies that would otherwise not get funding from anywhere else. It’s extremely important that these companies are helped to overcome the challenges they are facing, and the IDC is there and playing that role. We have funded quite a significant number of junior miners in South Africa...

Mining Weekly Editor Martin Creamer unpacks the Royal Bafokeng/Northam deal that will see a green business boost; Minerals Council South Africa's call for government to speed up electricity procurement processes; and the recent performances in gold mining, with Gold Fields and Harmony recently reporting.

Mechanised underground Gauteng gold mine South Deep has been hailed by a solidly performing Gold Fields as its star in the three months to September 30.

Gold Fields CEO Chris Griffith singled out the 75-year-life West Rand gold mine’s 30%-higher quarter-on-quarter performance when he reported solid third-quarter combined group output of 606 000 oz, which was up 9% year-on-year and up 8% quarter-on-quarter.

Moreover, despite planned quarter-four maintenance activities, South Deep remains on track to meet guidance, Gold Fields stated in a release to Mining Weekly.

South Deep produced 88 000 oz at an all-in cost (AIC) of $1 208/oz or R567 550/kg and all-in sustaining cost of $1 155/oz or R542 660/kg.

Gold mined increased by 14% to 90 700 oz in the September quarter from 79 700 oz in the June quarter on the increase in ore tonnes mined and improved broken grade.

Reef yield increased by 18% to 6.30 g/t and total underground tonnes milled increased by 13% to 475 000 t, while surface tonnes milled decreased by 19% to 280 000 t owing to cyanide shortages.

Development increased by 23% to 1 640 m and destress by 5% to 11 732 m. South Deep also did well to lift the installation of secondary support by 22% to 4 343 m, in line with improved development and destress performance. Backfill increased by 7% to 83 475 m3 on upped stope availability.

South Deep remains on track to meet the revised guidance provided with the first-quarter 2021 operating update, despite certain maintenance activities planned in the 2021 fourth quarter.

UP AND DOWN IN WEST AFRICA

The West African gold operations of Gold Fields in Ghana were up and down, in terms of both production and costs. Tarkwa’s output was up by 1% to 135 700 oz, Damang’s was 9% down at 56 400 oz and the Asanko joint venture was also 2% down at 49 500 oz on a 100% basis.

Tarkwa’s AIC decreased by 10% to $1 091/oz , Damang’s AIC increased by 6% to $879/oz and Asanko’s AIC increased by 6% to $1 697/oz.

HIGHER GRADES IN SOUTH AMERICA

Gold equivalent production of Cerro Corona in Peru, increased by 31%, to 69 400 oz, on mainly higher gold and copper grades and higher recoveries as a result of better metallurgical conditions.

Gold grades mined increased by 15% and copper grades by 5% and gold yield increased by 40% to 0.60 g/t in the September quarter from 0.43 g/t in the June quarter. Copper yield increased by 20% to 0.42% in the same period.

Up by 21% to $342/oz was AIC on mainly a lower copper by-product credit and higher capital expenditure (capex). Sustaining capex increased by 84% to $9-million in the September quarter on construction activities at the tailing storage facility. Non-sustaining capex increased by 20% on construction at two waste storage facilities.

SALARES NORTE SETBACKS

Covid and snowfall negatively impacted construction progress at Gold Fields’ Salares Norte gold project in Chile. Covid constrained workforce availability and 10 days were lost to snow-related setbacks.

While it is unlikely that the project will meet the previously guided 65% completion milestone by the end of this year, the project remains on track to deliver first gold by the end of the first quarter of 2023.

Process plant construction centred on the crusher and conveyor foundations, stockpile tunnel concrete pouring and backfilling.

The semi-autogenous grinding, or SAG, mill and the ball mill foundations were completed and mechanical installation commenced. Structural steel installation at the grinding area progressed and the bridge crane was erected. Installation of three leaching tanks and five carbon-in-pump tanks commenced, plant thickener foundations were completed, mechanical erection was initiated and filter plant precast and concrete work done.

The main building structure for the heavy mining equipment workshop was completed with the focus shifting to the completion of electrical and auxiliary buildings.

Work on a 9 km steel pipeline to supply fresh water was almost completed, with the civil works ...

The new quality ounces acquired by Harmony Gold are hoisting the once-bottom-feeding gold mining company into a new stratosphere of value and volume.

Johannesburg- and New York-listed company’s operational update for the three months to the end of September 30 highlights just how materially the newly acquired assets dominate the operating free cash flow position of the 1.6-million-ounce-a-year gold producer, which also has a significant pipeline of projects.

“We’re a new Harmony,” the company led by CEO Peter Steenkamp stated in a release to Mining Weekly.

The force of the quality ounces in elevating the company is illustrated by only 4% of this quarter’s operating free cash flow being generated by mines that have been synonymous with Harmony for many years.

In contrast, newly acquired and reinvested assets have come to the operating cash flow party by contributing 62% of the operating cash flow in the quarter, with surface source operations chipping in 34%.

In addition, gold production was up 32% on the corresponding three months of last year.

A 27% increase in underground tonnes milled, arising from a 26% increase in underground output, is also reported.

“We’ve transformed our portfolio,” stated Harmony about the quality ounces that it has brought on board and the volume increases being achieved.

Moreover, production of between 1.540-million ounces and 1.630-million ounces is being guided for the financial year to September 30, 2022, at an all-in sustaining cost of between R765 000/kg and R800 000/kg, with underground recovered grade of between 5.40 g/t and 5.57 g/t being planned

Overall production was steady quarter-on-quarter with 12 868 kg (413 714 oz) of gold produced in the first quarter of the new financial year versus 12 786 kg (411 078 oz) in the final quarter of its previous financial year.

Harmony's all-in sustaining costs for the reporting period increased by 9% to R795 086/kg from R729 680/kg and in dollar terms, an increase of 5% to $1 691/oz.

The higher R832 756/kg gold price received was mainly owing to a weaker rand and the higher earnings before interest, taxes, depreciation and amortisation (Ebitda) of R1 786-million and higher Ebitda margin of 16% which was predominantly the result of the higher gold price received.

Net debt is down to R454-million ($30-million).

DECARBONISATION

Harmony's strategy includes a decarbonisation plan aimed at a greener and more equitable future for all.

The company is in the process of finalising short-term emissions targets and a net-zero strategy.

It is implementing the first phase of a renewable energy programme, involving the erection of a 30 MW solar energy plant in the Free State.

The Wafi-Golpu project remains a key deliverable as Harmony develops as an emerging copper/gold mining specialist with exposure to green metals.

Gold mining major Newmont is spending $500-million on renewable energy projects against the backdrop of climate risk equating to investment risk for all mining industry participants, the Energy and Mines Virtual World Congress heard on Tuesday.

Expenditure of the half-a-billion dollars began last year and will extend over five years to 2025, Newmont executive VP and chief technology officer Dean Gehring told the 600 attendees of the event, moderated by Energy and Mines director Adrienne Baker, and covered by Mining Weekly.

Newmont, based in Colorado, in the US, owns gold mines in Nevada, Colorado, Ontario, Quebec, Mexico, the Dominican Republic, Australia, Ghana, Argentina, Peru and Suriname. It is also a producer of copper, silver, zinc and lead.

Gehring expressed the view that the mining industry could not afford to be fast followers when it came to the deployment of new technologies relating to climate-change mitigation.

“In the context of the mining industry’s timeline, when you consider our capital intensity, there’s not much time left to meet the 2030 targets,” he said, referring to the International Council on Mining and Metals (ICMM) last month committing its member mining companies to a 30% carbon emissions reduction by 2030.

Among the ICMM’s 28 member companies are South Africa’s African Rainbow Minerals, Anglo American, Glencore, Sibanye-Stillwater, Gold Fields, South32 and AngloGold Ashanti.

“It can take five to ten years to develop cutting-edge original equipment manufacturer technology. Besides having the capacity to deploy new technology, companies will need time to build the necessary infrastructure to support and operate that technology,” Gehring commented.

He drew attention to the increasingly vigorous focus being placed on Newmont’s environmental, social and governance (ESG) stance, accompanied by what he described as “increasing investor and societal expectations as well” – against the backdrop of the standpoint of powerful global investors such as BlackRock that ‘climate risk is investment risk’.

He illustrated the dramatic increase in climate-change pressure by revealing that Newmont had experienced a threefold surge in ESG downloads – from 2 000 last year to 6 000 so far this year.

This intensified ESG focus had sent strong signals about the importance of long-term climate strategy.

The steep trajectory of rapidly rising climate-change expectations was, in his view, set to continue, with investors no longer being satisfied with mere emission-reduction commitments but demanding detail about the pathways that mining companies had embarked upon to achieve their targets.

“With the COP26 summit under way and its mission to accelerate the goals of the Paris Agreement, we’re not going to be surprised if we see even more aggressive targets and more expectations coming out of that summit,” said Gehring, who predicted that smaller mining companies would soon also be subject to the pressures that only large mining companies had experienced up to now.

He expressed the view that mining companies would need scale, partners and a centralised approach to develop and deploy lower-carbon technologies rapidly enough to remain within the expectations curve.

Also, as pressures increased, mining companies should expect emission reduction to become an integral part of valuation metrics.

BOTTOM-LINE CLIMATE FOCUS

Within Newmont itself, additional emphasis was being placed on potential carbon costs and emission savings as the viability of any new project was being assessed.

“Simply said, we're focused on the bottom line, both from the financial and climate perspectives,” said Gehring.

He revealed that Science Based Target Initiative (SBTI) had in June validated Newmont’s greenhouse gas emissions reduction targets of 30% of Scope 3 emissions by 2030 and more than 30% of Scope 1 and Scope 2 emissions by the same deadline, and described SBTI as an organisation that provided “important independent and transparent third-party assu...

The drive for clean energy technologies that are required to achieve climate goals will increase demand for critical minerals, putting the mining and metals industry at the forefront of the energy transition.

However, this necessitates that materials be responsibly sourced and produced, said leadership organisation International Council on Mining and Metals (ICMM).

ICMM innovation and climate change manager Verónica Martinez discussed during a November 9 Energy and Mines World Congress 2021 presentation the organisation’s approach to net-zero Scope 1 and 2 greenhouse-gas emissions by 2050 or sooner.

The ICMM has 28 mining and metals company members and 35 commodities association members across the world and sets responsible mining principles for members to adhere to.

Martinez said the decarbonisation of the mining and metals industry has, for a number of years, been recognised as a major disrupter, with various debates on its risks and opportunities ongoing.

Environmental and social, followed by decarbonisation, topped the 2022 top ten business risks and opportunities for mining and metals companies, according to a yearly survey conducted by consultancy EY.

To this end, the ICMM’s climate change programme is focused on mitigation – how the industry reduces emissions along its value chain; adaptation – how the industry builds short and long-term operational and business resilience; and disclosure – how the industry provides climate-related information transparently and in a standardised way.

Martinez noted that the ICMM is building clear pathways to achieving net-zero Scope 1 and 2 emissions by 2050 through meaningful short and medium-term targets; however, the organisation acknowledged that, for some operations, intensity rather than absolute targets may be more appropriate in the short and medium term.

The ICMM aimed to set Scope 3 emission reduction targets at the latest by the end of 2023 and the organisation would play a meaningful role in overcoming barriers and advancing partnerships with suppliers and customers to enable emission reductions across value chains.

To mitigate emissions, Martinez deemed it necessary to first understand where emissions are coming from, which varies according to the commodity mined, owing to different energy levels required for processing.

In the metals and mining industry, Scope 1 emissions mostly stem from fuel consumption in separation and material movement processes, Scope 2 emissions mainly relate to electricity to power operations. Martinez said Scope 1 emissions account for about 60% of ICMM members’ emissions, with Scope 2 accounting for the balance.

She added that Scope 3 emissions occur along the value chain and what happens with the material further, and are therefore more intense for commodities such as coal and iron-ore, and less so for gold, for example.

Many ICMM members have already committed to supporting emissions reductions in maritime transportation by perusing low carbon chartering choices and promoting technology to optimise voyages, and promoting innovations for emissions-free surface mining vehicles.

Almost 50% of emissions from mine sites are linked to the mining fleet.

Mining companies are also increasingly engaging with downstream stakeholders to support the development of technologies capable of reducing emissions in the production of steel and aluminium.

The ICMM advocates for its stakeholders to support circular economy principles, for example by keeping materials in service for longer and avoiding unnecessary use of minerals and metals, and also urges members to pursue renewable energy builds on site or renewable energy power purchases.

Martinez confirmed that ICMM members are all assessing local conditions and opportunities suitable for them to decarbonise, for example, some countries have more viable resources to pursue renewable energy builds than others.

In terms of challenges, she explained that the ICCM was seeing the need for suitable business models f...

The global energy landscape is changing amid a rush to net-zero emissions by 2050, and renewable energy is going from strength to strength, with these projects having captured nearly 50% of all new generation build capital in 2020.

Energy services company Wärtsilä Canada business development manager Mark Kennedy said during an Energy and Mines World Congress 2021 session on November 9 that, by 2030, this would likely increase to 67%.

He did, however, question whether a 100% renewable energy-driven mining sector was possible, stating that energy storage solutions and optimised management would be key.

A separate panel of experts during the conference echoed the sentiment, explaining that miners are increasingly looking to integrate battery energy storage solutions (BESS) to increase renewable energy penetration for remote hybrid solutions.

Kennedy made reference to an example in the Graciosa Island of Azores, which used a 4.6 MW diesel power plant as its grid for years, before switching intermittently to a 5 MW wind farm, 1 MW of solar and 7.4 MW of battery energy storage.

The island’s power system is integrated with Wärtsilä’s GEMS software, which helps to optimise, dispatch and coordinate the different energy sources.

The GEMS system can process 1 000 data points per second to dispatch different resources in an optimal way. It supports a variety of battery and power electronics to achieve optimal system performance.

In 2020, the island had 128 days of 100% renewable power, and resultantly, the levelised cost of electricity has gone down. The next step is to switch the island’s use of fuels to possibly hydrogen, to see a 100% renewables rate all year round.

Kennedy pointed out that energy storage had become a critical part of the energy transition discussion.

Global energy storage capacity had grown from 1.8 GW in 2017 to 5.5 GW in 2020, and was expected to reach 11.5 GW by the end of this year and, ultimately, 26 MW by 2025.

Simultaneously, lithium-ion battery pack prices had fallen by 89% from $1 191/kWh in 2010 to $137/kWh in 2020.

However, as the technology matures, it does get difficult to further lower costs, Kennedy highlighted.

He cited data by research agency BloombergNEF, which forecasted a lithium-ion battery pack price of $92/kWh by 2024, before decreasing to $58/kWh by 2030 and further to $45/kWh by 2035.

“Every time energy storage capacity doubles, the price drops by 18%.”

Looking at a mining example, Kennedy said B2Gold’s Fekola mine, in Burkina Faso, has a 64 MW heavy fuel oil thermal plant, together with a 30 MW solar field – which caters to 20% of the mine’s power needs – and a 17 MW BESS.

He said the project was testament to the success that a hybrid energy plant could achieve, in saving 13-million litres of fuel a year and avoiding 39 000 t of carbon dioxide emissions.

“As we talk about the path to 100% renewables, it is going to be difficult to get there with wind and solar alone, even with significant solar builds, particularly in the mining sector.

“Therefore, Wärtsilä is particularly focused on carbon-free fuel and is investing heavily in hydrogen research and development. It has been testing equipment with increasingly higher blends of hydrogen. Wärtsilä has a roadmap to getting to 100% hydrogen plants in 2025.”

However, hydrogen comes with the challenges of burning quickly and at high temperatures, which creates challenges in combustion. Hydrogen is also more prone to leaking compared with, for example, natural gas. There is also the issue of a lack of a hydrogen supply network and infrastructure globally.

“Miners can only adopt the technology if hydrogen fuel is available, and the technology will only be deployed once demand is there. It is a chicken and egg scenario,” Kennedy stated.

However, Wärtsilä was seeing more hydrogen investments by governments globally , which is a critical piece of the puzzle.

Kennedy believes the mining industry is facing an energy transition where renewables are incre...

The green hydrogen market presents a huge opportunity for Africa to position itself as a global competitor in future green energy markets, Minerals Resources and Energy Minister Gwede Mantashe has told the Africa Energy Week.

Countries such as South Africa and Zimbabwe, the Minister said, possessed global reserves of platinum, which could help the continent to spearhead fuel cell production.

South Africa had for the past 15 years spearheaded the development of hydrogen and fuel cell technologies through the Hydrogen South Africa research, development and innovation programme led by the Department of Science and Innovation.

“It is one example that demonstrates that as Africa, we can take charge of our energy development trajectory,” said Mantashe.

South Africa welcomed the commitments made recently to invest in renewable energy, he said in reference to last month's announcement of 25 preferred bidders selected in the fifth round of the Renewable Energy Independent Power Producer Procurement Programme.

“This adds impetus to our commitment to a just energy transition and meeting the challenges of climate change,” he said.

As Africa sought to transition to a net-zero future, the continent should look into the role of mineral resources such as the platinum group metals, rare earths, and many others that abound in African countries, Mantashe added.

Royal Bafokeng Holdings has accepted an unsolicited offer from Northam Platinum for up to a third of Royal Bafokeng Platinum (RBPlat) in a R17-billion transaction that opens the way for the community to accelerate into the fast-growing green energy economy with Northam’s help.

Royal Bafokeng Holdings will have its cake and eat it by continuing to be an investor in platinum group metals (PGMs) while also being the beneficiary of linked decarbonisation and green business developments that come with renewable energy generation and the potential conversion of carbon-free industrial activity and green hydrogen mobility.

The socioeconomic interests and needs of the community were being prioritised, Royal Bafokeng Holdings CEO Albertinah Kekana stated. In line with the community’s strategic Plan ’35, the transaction ensured that the portfolio of the holding company remained diverse and liquid while also supporting direct community interventions, Kekana added.

Northam CEO Paul Dunne described the complementary metals mix of RBPlat, with a higher relative platinum contribution, as fitting well within the broader Northam metals basket.

“The RBPlat assets are young, shallow and well capitalised,” Dunne commented in a release to Mining Weekly. RBPlat’s PGMs mines are on the western limb of the Bushveld Complex.

Northam underscored its commitment to working closely with the Bafokeng community in the areas of renewable energy, and enterprise and skills development, making special mention of the establishment of a trade school.

At the same time, the joint cautionary announcement of the impending transaction between Implats and RBPlat has been withdrawn owing to share dominant Royal Bafokeng Holdings accepting Northam’s offer of R8.6-billion cash and 8.7% of Northam’s shares.

In addition, Northam must support renewable energy and battery storage projects to boost regional decarbonisation, energy security and lower electricity price prospects.

A dividend of R350-million will provide water relief to the community, which will also receive high-impact small business and technical education boosts.

The 300 000-member Bafokeng, who reside overwhelmingly in the town of Phokeng, near Rustenburg, in North West province, are in line to become meaningful participants in the strongly emerging green economy.

In addition, the community will benefit from employment creation during the construction and operational phases of the planned projects.

Currently a holder of 36.1% of the Johannesburg Stock Exchange-listed RBPlat, Royal Bafokeng Holdings will continue to have 2.8% and 8.7% direct and indirect interests, with the endorsement of the community’s development trust and supreme council, a media release to Mining Weekly stated.

The initial sale of 32.8% of RBPlat to Northam for R17-billion can increase to 33.3%, currently valued at R17.2 billion.

The second of three interventions agreed in the Northam-Bafokeng memorandum of understanding is the establishment of an enterprise and supplier development fund and programme to promote and support the participation of community enterprises in the mining value chain.

This intervention, the release stated, would deliver business incubation, growth acceleration and access to market and finance by community enterprises.

The third intervention, the release added, would decrease youth unemployment through an artisan training programme and a trade school sufficiently comprehensive to absorb thousands from different educational backgrounds.

In addition, the special dividend declaration would underpin much-needed water supply.

The Bafokeng community must take a bow for fully embracing climate-change mitigation at a time when the post-COP26 world is clamouring for decarbonisation and greenness.

This foresight by the Bafokeng highlights the urgency that is needed to supplement Eskom and at the same time take advantage of the localised energy security and lower electricity cost that clean energy pursuits guarantee.

The tra...

The 82 exploration permits issued by Egypt to 11 junior and major mining and exploration companies, along with the country's underexplored, but promising, mineral resources and its location, bode well for the development of its mining industry and for its role as a mining exploration and services hub in the Middle East and North Africa region, mining consulting services multinational The MSA Group (MSA) and Egyptian partner Gold Pyramid Group (GPG) say.

The companies have formed a partnership, MSA-GPG, to provide a full range of mining services to mining and exploration companies operating in Egypt and have taken advantage of first movers advantage in a rapidly developing market with big potential.

GPG CEO Mostafa Talaat notes that, since its establishment in 2016, GPG has tried to capture as much of the mining services market as it could, but that the potential gap between supply and demand encouraged the MSA-GPG partnership to exist in order to provide provide world class services combined with in-depth local knowledge and logistical support.

MSA Group MD Dr Ian Haddon adds that the MSA-GPG partnership also has the potential for expansion into neighbouring countries, including Sudan, and across North Africa.

Haddon highlights that the Neoproterozoic geology of the Arabian-Nubian Shield likely hosts a complete continuum of gold deposits from small shallow gold deposits amenable to smallscale mine operators to large, tier-one deposits and adds that this geology also extends across the Red Sea into Saudi Arabia, where MSA has been providing services to clients over the past nine years.

MSA head of exploration services Craig Blane agrees that the area is attractive to explorers: "One of the key factors that attracted the junior and major miners to explore in Egypt is the potential to discover tier-one gold deposits in the Eastern Desert of Egypt. Ground conditions are relatively conducive to efficient exploration, sites are accessible and infrastructure in the region is well developed, and the geological potential is immense.

"Egypt is a prospective destination and, apart from the gold deposits that are known to occur, MSA Group and GPG believe base metals, critical metals and rare earth element deposits will be discovered. While the initial attention of mining and exploration companies is on gold, we do expect the industry to expand into other metals once these deposits have been better defined and are better understood," he says.

Talaat points out that Egypt is underexplored, even though it is known as one of the oldest nations to undertake mining of gold and other minerals since Pharaonic times, virtually no exploration has been undertaken since the pharaonic era. Being under explored, highly prospective and having policies supportive of mining makes Egypt attractive to investors.

"The Egyptian government is initially focusing on gold to attract good mining and operating companies but the government is expected to include other minerals in its plans over time, especially once deposits have been identified through exploration."

Exploration is typically a six- to eight-year process and, for Egypt to reach its stated goal of having mining contribute 5% of gross domestic product by 2040, the mining industry will need to be nearly ten times larger. The government understands the need for stability in order to attract explorers and miners, and the policy environment is expected to remain stable and favourable for the mining industry, with amendments to legislation and exploitation agreements expected to mainly involve streamlining and fine-tuning. The new mining codes already include industrial and environmental best practice requirements, Talaat says.

“The first round of bids for exploration rights has resulted in an increase in the number of companies exploring in the country from three or four to more than 11, with more companies expected to be added to the list after the second bid round award," says Talaat.

There are alread...