HEAR DIRECTLY FROM TONNO VAHK

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?

Clearly, the geological prospectivity of the Eastern Desert as part of the Arabian-Nubian Shield is well known, but Egypt has for a long time been heavily under-explored. It is very pleasing that Egypt is addressing the reasons behind this, and significant advances have been made. For any country to really develop the exploration sector, clarity around regulations is important. Security of tenure is critical, and being able to easily move from exploration to mining is critical. To put it simply investors and companies will not invest in any country if they do not believe that they will be allowed to mine economic mineral deposits that they find and delineate.

Aton are one of the most active foreign exploration companies in Egypt, what are the geological exploration challenges that you’ve encountered in the development of Abu Marawat Concession since its award in 2007?

Well a lot has happened in Egypt since 2007, and certainly this has presented some challenges over the years!  That said though, we have operated pretty much continuously since we were awarded our licence in 2007, and we have developed the most advanced gold exploration projects in Egypt in this time. So while there have been challenges, we have certainly been able to operate and advance our projects. One thing worthy of mention is the exponential growth of the informal, artisanal gold mining sector in recent years. Certainly, we believe there is a place for an artisanal sector, but the massive growth of this unregulated activity is clearly an industry-wide challenge right now.

The Egyptian government has enacted new legal frameworks for better exploitation terms and conditions, is this a step in the right direction and what more can be done to increase exploration projects in Egypt?

Absolutely huge progress has been made in recent years, and the fact is that in 2019 there were really only 2 companies exploring the Eastern Desert for gold, one of which was us. Now of course we see Tier 1 companies such as Barrick, amongst numerous other companies seriously exploring in Egypt, and this is a direct result of the changes to the legislation regulating mining in recent years. But this is an ongoing process, and the industry and Egypt will need to continue to engage to grow the exploration sector in Egypt.

Egypt has the ambition to become a global mining trading hub, with plans to generate $10 billion in exports by 2040. What steps can the government take to create a road map for obtaining this goal and making the mining sector a substantial contributor to the country's economy?

As I mentioned previously, finessing the regulations that cover mining is an ongoing process. Security of land tenure remains key, and improving the clarity and attractiveness of the exploration agreements is paramount. The agreements have to be sufficiently attractive for companies to invest in what is a very high-risk business. There are sadly no guarantees in mineral exploration! Egypt is in competition with the rest of the world, and many countries are working hard to attract investment dollars into their mining sectors, and the investment will go to the most attractive places!

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 showcasing Aton at the Egypt Mining Forum as we move towards the mining licence at the Abu Marawat Concession, and of course I am looking forwards to showcasing Egypt. Aton has been here a long time, the reason being that we totally believe in the potential of the Egyptian mining sector, and we are absolutely committed to advancing it and promoting it. We are planning to be the first foreign company to develop a gold mine in Egypt, since Centamin submitted its application for a mining licence at Sukari more than 20 years ago, and for sure this will be a great step forwards for us, for EMRA, for the Ministry of Petroleum and Mineral Wealth, and most importantly for Egypt.