The Ministry of Petroleum has completed seismic and geological surveys of five promising gold exploration sites along the Red Sea coast, as part of a state plan to increase the mining sector’s contribution to GDP to 6%.
The seismic surveys were conducted to create precise underground maps of geological structures and locate mineral deposits ahead of extraction operations, a source familiar with the exploration and mining file at the Ministry of Petroleum told Al Manassa.
The source, who requested anonymity, explained that survey results showed a 10% probability of discovering extractable gold reserves, double the 5% standard usually found in such survey work.
These moves come as the mineral resources sector faces criticism for its limited contribution to national GDP, which currently stands at less than 1%.
While private sector gold production remains primarily concentrated at the Sukari mine, the source noted that the Egyptian Mineral Resources Authority (EMRA) has contacted more than eight international mining companies to discuss the economic feasibility of the discovered areas, in preparation for a new auction where investors will submit technical and financial bids.
The last auction launched by the Ministry of Petroleum, through the Shalateen Mineral Resources Company in 2023, included five areas in the Eastern Desert. However, no contracts were awarded—despite extensions to the application period—due to a lack of agreement with investors over contractual models, according to the source.
The upcoming offerings, however, include a package of incentives to attract investors, such as lower initial costs, tax and customs benefits for equipment, and more flexible licensing models, particularly during the initial exploration phases.
The authority also intends to expand local mining industries related to gold and other mineral extraction to maximize local value-added benefits rather than exporting raw materials in their primary form. To that end, contract awards will be contingent on a commitment to build local manufacturing and integrated value chains, driving the push to increase the sector’s economic share.
In 2025, the Canadian company Aton Resources announced it would start commercial gold production from the Abu Marawat site in the Eastern Desert during 2026. However, the volume of new discoveries remains limited; the project’s reserves are estimated at approximately 300,000 ounces, compared to the Sukari mine’s reserves, which stand at about 6.2 million ounces.
