Egypt aims for bigger mining industry contribution to GDP in 5 years
Egypt aims to boost its mining sector’s share in gross domestic product (GDP) to 2 percent in the coming five years, oil minister Tarek el-Molla said on Monday.
The mining sector currently accounts for 0.5 percent of GDP, far below the country’s rich mining resources and capabilities.
Egypt has started plans to develop the sector, including mining law amendments to make the industry more attractive to investors, el-Molla said at a conference in Cairo.
The mining law is of particular interest to investors because of Egypt’s potential gold production, with much of the country’s gold untapped because of restrictive commercial terms.
Among the planned changes in the law is a cap on royalties paid by investors, el-Molla said in previous statement earlier in October. It will change some of the clauses where the Ministry of Petroleum saw they were a little limiting or restricting investing in the mining sector.
Egypt has struggled to attract foreign investors since a 2011 uprising, though investment in the oil and gas sector has been growing.