Mining Firms Facing Financial Obstacles To Continue Operations In Egypt

Dr. Mosaad Hashim, the Chairman of the Egyptian Mineral Resources Authority (EMRA), said there are several challenges and crises facing by a number of firms working in the mineral resources sector. For instance, the Canadian mineral exploration company Alexander Nubia International Inc. is currently encountering major financial problems which could ban the firm to continue its exploration activities in Egypt, Hashim added

He further noted that Alexander Nubia holds two exploration concessions in Egypt: Abu Marawat and Fatiri, which cover areas of 1,027 km2 and 1,745 km2, respectively with investments worth US$ 5.6 million and US$ 2.9 million respectively.

There is also SMW Gold, a junior exploration and mining company based in Moscow, Russia; is facing multiple challenges and accordingly has currently halted its operations due to the weak returns from making investments in Egypt.

SMW Gold has explored for gold in Egypt in partnership with the Egyptian Mineral Resources Authority (EMRA) since 2007.

Meanwhile, the EMRA chairman further said the firms working in the mineral resources sector are unable to fulfill their businesses for the mean time. The current Mineral Resource Act is a formidable obstacle on the road to any future investments as well as the to the EMRA’s objectives, he added. The EMRA aims to make amendments on the current act within the coming period.