In line with The Government of Egypt (GoE) and Ministry of Petroleum and Mineral Resources (MoPMR) mandate for developing and best utilizing the mineral resources, MoPMR is looking to develop its gold mining sector through a study of developing “The Egyptian gold Hub” in the Eastern Desert for the upstream component of the gold value chain, from exploration through mine production to refined metal. The hub shall serve gold mining activities by availing specific gold mining services, and encouraging project owners to source services from local enterprises. The GoE’s vision is to use the gold Hub as a platform to attract private sector investment into the region, private service companies would have the base facilities and infrastructure to serve the growing gold sector in Egypt.

Hub concept

The World Bank (WB), with funds from Extractives Global Programmatic Support (EGPS), is supporting the GoE by providing the advisory services and analytics for the high-level master plan for a Gold Hub in the Eastern desert.  “DMT Consulting Ltd Engineering & Mining Services” is conducting the study that is expected to be finished end of July 2022. The study will include the cost-benefit analysis of the Hub, develop a phased strategy for its implementation along with relevant expenditure and the promotion strategy to investors The hub shall consider the following key characteristics:

  1. Define industrial, educational and residential zones within the Hub;
  2. Refinery: First international accredited gold refinery in Egypt,to complete the value chain for gold production and qualify the produced gold for direct global trading through LBMA.
  3. Laboratory: for all analytical and testing services required for mining activities.
  4. On-site mining services: Establish branches for mining services companies specialized in activities such as airborne survey, drilling, mines design and engineering, mining environmental consultation, etc.
  5. Vocational academics: aimed at typical vocational qualifications in mechanical and electrical engineering, mining and process engineering but also with the eye on the ASM activities in Egypt. In addition, to provide the opportunity to tie-up with an existing University in Egypt for vocational and academic development and to provide hands-on experience for mining students.
  6. ASM: to embrace the ASM community and to work on gradually formalizing the existing unregulated operations under the Hub. In addition helping the ASM community to improve its technical competencies in world-level mining and processing operations.
  7. Health, Safety and Environment (HSE): to improve HSE activities particularly in ASM operations, but also to reach out to the gold mining sector in general from a pertinent vantage point (in the sector).
  8. Environment and social: Study the preliminary environmental and social implications of the hub.
  9. Security: provide complete security for all the zones and activities of the Hub.
  10. Infrastructure: provide infrastructure, utilities; road, communications, etc. with easy and secure access.
  11. Accommodation and facilities: provide suitable accommodation for management and workers and communities within the Hub including residential and recreational facilities.