Egypt Wants Mining to Deliver 6% of GDP but Still Needs to Convince Investors

Egypt has stepped up efforts to expand its mining sector with a flurry of agreements this week as Cairo pursues an ambitious target to lift mining’s contribution to GDP from less than 1% today to 6%. On May 25 the government signed a memorandum of understanding with Turkish company OZ Mining to launch an exploration campaign assessing gold potential in the Eastern Desert. That followed a May 24 cooperation deal between the Ministry of Petroleum and Mineral Resources and Xcalibur Smart Mapping for an airborne geophysical survey — described as Egypt’s first such survey in more than four decades — to be carried out with local partner Drone Tech across six regions including the northern and southern Eastern Desert, Sinai, and the northern and southern Western Desert.

“These amendments come within the framework of the Ministry of Petroleum and Mineral Resources’ strategy to create an attractive investment environment, optimize the use of natural resources, and increase the mining sector’s contribution to the national economy,” the ministry said, framing recent regulatory changes designed to spark fresh investment.

Reforms, exploration and a heavy reliance on gold

Alongside exploration campaigns, Egyptian authorities have pursued regulatory reforms intended to make the sector more investor-friendly. Earlier this month the government approved amendments that reduced the state’s mandatory participation in mining projects to 10%, down from 25%, and introduced a maximum 30-day processing period for mining permit applications. These measures build on reforms launched in 2020 that ended the production-sharing agreement system and removed the obligation for mining companies to create joint ventures with the state.

Authorities highlight a diverse resource base — gold, tantalite and coal, alongside copper, silver, zinc and platinum — but current activity remains concentrated in a small number of projects. The Sukari mine, operated by AngloGold Ashanti, remains the sector’s flagship and produced around 500,000 ounces last year. Canadian miner Aton Resources plans to begin gold and silver production at its Hamama West project by 2027, and Australian junior Nex Metals Exploration recently signed an agreement to take control of the North Hennai gold project, indicating growing interest among foreign juniors.

• May 25: MoU with OZ Mining for gold exploration in the Eastern Desert.
• May 24: Cooperation agreement with Xcalibur Smart Mapping for an airborne geophysical survey with Drone Tech, covering six regions.
• Regulatory changes: state participation cut to 10% (from 25%); 30-day cap on permit processing.
• Ongoing industry moves: Sukari produced ~500,000 ounces last year; Aton targets production at Hamama West by 2027; Nex Metals to control North Hennai.

Despite the measures and renewed exploration, Egypt faces a credibility challenge. In the Fraser Institute’s 2025 ranking of mining jurisdictions, Egypt placed second to last among 14 African countries evaluated, ahead of only Burkina Faso, underscoring persistent investor perception issues. Authorities will need to translate policy changes into demonstrable project execution and sustained capital inflows if Cairo is to move from announcements and surveys to a materially larger mining sector contributing closer to the 6% GDP goal.

Report compiled from Ecofin Agency coverage.