For­mu­lat­ing new gold search and ex­plo­ration agree­ments: EMRA

Sep­a­rat­ing search pe­riod from pro­duc­tion to make in­vest­ment more se­ri­ous

The Daily News Egypt - - Front Page - By Mo­hamed Adel

The Egyp­tian Min­eral Re­sources Au­thor­ity (EMRA) has an­nounced the for­mu­la­tion of new gold search and ex­plo­ration agree­ments which in­clude an agree­ment by the min­istry of pe­tro­leum for in­vestors, spec­i­fy­ing the time limit for the ex­plo­ration, and with the an­nounce­ment of a com­mer­cial dec­la­ra­tion, a pro­duc­tion agree­ment will be is­sued with the ap­proval of the par­lia­ment.

Ay­man Saie, the chair­per­son of the EMRA, told Daily News Egypt that the old gold ex­plo­ration agree­ment caused Egypt to lose so much, and al­lowed in­vestors to work for pe­ri­ods up to 30 years, with­out see­ing any pro­duc­tion or re­sults.

He ex­plained that sep­a­rat­ing search from pro­duc­tion in agree­ments will make in­vest­ments more se­ri­ous, be­cause in­vestors would not take long to an­nounce the trade dec­la­ra­tion. This would also help fa­cil­i­tate the le­gal mea­sures be­cause they would be is­sued with the ap­proval of the min­is­ter of pe­tro­leum and min­eral re­sources.

Saie noted that Egypt has about 120 gold mines that are not utilised. The new form of agree­ments wil l de­ter­mine Egypt’s fair share of pro­duc­tion, con­trary to the sit­u­a­tion in old agree­ments.The shar­ing will be ap­plied right af­ter pro­duc­tion and not af­ter the ex­pen­di­tures of in­vestors are re­cov­ered.

Dur­ing the 15th Arab Min­ing Con­fer­ence, he said that the sit­u­a­tion in the pre­vi­ous laws and agree­ments al­lowed in­vestors to re­sort to in­ter­na­tional ar­bi­tra­tion with­out any right to do so, and re­ceive com­pen­sa­tions that ex­ceeded the vol­ume of their in­vest­ments, es­pe­cially that the agree­ment is is­sued ac­cord­ing to a law from the par­lia­ment.

Saie said that the new amend­ment in the law pro­vides in­vestors with two years for ex­plo­ration, then an as­sess­ment would be paid, in ad­di­tion to two more years be­fore an­other as­sess­ment is made. Af­ter­wards, an agree­ment would be signed with tax and cus­tom ex­emp­tions, or lands would be with­drawn.

He added that he ex­pects a leap in in­vest­ment to take place af­ter the tan­gi­ble suc­cess Egypt has man­aged to achieve in terms of achiev­ing se­cu­rity and sav­ing en­ergy. Ad­di­tion­ally, a strong road net­works was es­tab­lished to en­able in­vestors to move eas­ily, and al­low them to be con­nected to in­dus­trial ar­eas and ex­port ports.

Note­wor­thy, the new amend­ments in the law of min­eral wealth stip­u­late that the roy­alty value should not be less than 5%, and not more than 20% of the value of an­nual pro­duc­tion, ac­cord­ing to the ex­ec­u­tive reg­u­la­tions of each crude ma­te­rial.

Ad­di­tion­ally, the gov­er­norate where the li­censee’s land is lo­cated re­ceives 1-6% of the value of an­nual pro­duc­tion of the ma­te­ri­als of mines and quar­ries.The amount would be al­lo­cated for com­mu­nity de­vel­op­ment.

The new amend­ment in the law pro­vides in­vestors with two years for ex­plo­ration

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