Egypt updates Abu Marawat gold mining terms with Aton Resources

Egypt on Wednesday initialled a draft amendment to parts of its commitment agreement with Canada’s Aton Resources Inc. for the exploration and exploitation of gold and associated minerals in the Abu Marawat area of the Eastern Desert.

The amendment, agreed between the Mineral Resources and Mining Industries Authority (MRMIA) and Aton, paves the way for completing legislative procedures aimed at improving the investment framework for mining projects in the region, the petroleum ministry said.

Abu Marawat, where Aton has already made a commercial gold discovery now under development, is being positioned for long-term production in line with global mining practices. The revised terms are intended to establish a sustainable financial model that encourages higher investment levels, supports further exploration success, and balances returns for both investors and the state.

Aton’s exploration programme resulted in a commercially viable gold find, allowing the company to move from exploration to exploitation, the ministry added. An exploitation licence has been granted covering more than 57 square kilometres in the Hamama West and Rodruin areas, while 255 square kilometres have been approved as retention areas in Abu Marawat and South Safaga.

Mining operations will be carried out by Abu Marawat Gold Mines Company, a joint venture between MRMIA and Aton, in accordance with international best practices.

Petroleum Minister Karim Badawy said Egypt’s mining sector is advancing through ongoing regulatory reforms, adding that the ministry is coordinating with state institutions to facilitate investors’ operations. He encouraged mining companies to engage with the new regulatory framework, which operates under a one-stop-shop system designed to streamline procedures and resolve challenges more quickly.

Attribtuion: Amwal Al Ghad English

Subediting: Y.Yasser