HEAR DIRECTLY FROM ANTONY BENHAM

Egypt’s mining sector has come a long way in recent years, how can the Eastern desert become the next big exploration zone for international mining investors?

The Egyptian Eastern Desert forms part of the Arabian-Nubian Shield and shares similar geology to the Arabian part of the Shield. Since the Arabian side hosts a variety of mineral deposits including structurally controlled gold deposits, volcanic-associated base metal deposits and rare earth element deposits amongst others, it is reasonable to expect that these types of deposits will also be present in Egypt, and this should be highlighted to potential investors. One way to attract exploration companies to Egypt is to provide a clear and transparent licencing process. By demonstrating a clear process for how companies can acquire and progress licences from exploration to production licences, this provides the security that exploration companies need before they invest funds at the start of the exploration cycle.

The Eastern desert has great potential for mineral development, what are the geological exploration challenges to establishing commercial mines and how may they be overcome?

Mineral exploration companies are used to operating in remote locations all over the world, so I don’t think that the Egyptian Desert has too many unique geological challenges that need to be overcome. It is actually beneficial to have good exposure of rocks at surface that are not obscured by overlying superficial surface cover, so this is something that makes exploration in the Eastern Desert more attractive than some other locations around the world.

The MSA Group has an international presence, working with clients worldwide, how can Egypt learn from leading mining countries in navigating regulations and policies to develop an effective mining governance structure?

It would be beneficial to look at why some countries around the world are successful in attracting exploration investment, and equally why other countries are not successful. Wherever in the world exploration occurs, all exploration companies are looking for stability and security for their operations due to the length of time it usually takes to progress from exploration to mining. Security of tenure is a fundamental requirement – the guaranteed right for a company to progress a licence from exploration to production should a mineral deposit be located. Legislative security is also important – the knowledge that the rights of an exploration company are guaranteed in the laws of a country. Fiscal security is equally vital – the knowledge that funds invested into a country are secure and that profits from future operations can be removed from a country without hinderance. By looking at policies and regulations from successful jurisdictions, it will become apparent what works and why these countries are more attractive.

Having worked on significant mining projects throughout the world including Egypt, are there any specific challenges or opportunities unique to Egypt's geological landscape that mining companies need to consider when planning exploration activities in the Eastern desert?

Because there is so much exposure of rock at surface over much of the Eastern Desert, it allows companies to use exploration techniques such as remote sensing. This allows a better understand the structure and lithological variation over a large area in a short timescale prior to following up areas of interest with on-the-ground exploration. The main challenge when working in desert areas is sourcing water that may be required for more advanced exploration techniques such as drilling, but these can be overcome by careful planning and the use of alternative exploration techniques where possible. In certain areas, it’s also important to be mindful of potential historical or archaeological artefacts that may be present, or when operating close to environmentally sensitive regions.

You are joining us next month in Cairo at the Egypt Mining Forum as a panelist. Can you tell us, what are you most looking forward to discussing during your panel?

I’m looking forward to discussing the tremendous opportunity that exists in Egypt and helping delegates understand its geological potential. I think that, with appropriate policies and regulations, the mineral resources of Egypt can add substantial value to the country and its people, and I hope that these can be carefully developed by using best practice examples from other jurisdictions for the benefit of all.

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