Investors, economists see Egypt’s new mining law as promising
Egyptian President Abdel Fattah al-Sisi approved a new law on mining that would help promote the mineral sector by attracting foreign investors and regularizing the industry.
Egyptian investors and economists are expecting that the country’s new mining law will open the way for more investments in the field of mineral exploration and extraction and therefore boost the national economy and state revenues.
On Aug. 13, President Abdel Fattah al-Sisi approved a law to amend some provisions of the Mineral Resources Law No. 198 of 2014. The measure had been approved by the parliament the previous month.
Legislators said the law aims to establish clear mechanisms to exploit Egypt's mineral wealth from quarries and mines while ensuring the largest possible return in favor of national income.
Under the new law, fees collected by the government from companies investing in the mineral wealth sector would be a maximum of 15% and a minimum of 5%. Under the old law, fees stood at 20%; they have been reduced to encourage more investors to inject their money into this sector. The rent value of mines would be modified every three years instead of there not being a specific timeframe.
