Tuesday, 27th March 2007 (2556 views)

Mining in Egypt could be set to surpass the tourist industry following the discovery of significant mineral deposits in its eastern desert regions.

According to a report by the Middle East Times, a spokesperson for the Centamin mining corporation in Australia, says that some $3.7 billion (£1.89 billion) of mineral assets may have been discovered.

Centamin believes that the reserves could be worth up to $10.5 million (£5.35 billion) to the Egyptian economy.

This includes significant gold reserves having been discovered in one of the desert's six hills.

However, due to an old legislative framework, large firms are being prevented from developing projects.

Frank Sader, chief strategist and senior operations manager at the International Finance Corporation, told the paper the group was "helping to create a policy for Egypt and mining companies".

With new legislation creating "uncertainty", Mr Sader also said that the Egyptian parliament would have to be educated on issues such as taxes and revenue-sharing.

 

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