Egypt’s Minister of Petroleum and Mineral Resources Karim Badawi has announced the recommencement of development activities at the Zohr gas field, which will entail the drilling of two developmental wells in January.
Additionally, the minister disclosed plans to launch a Mineral Resources Portal and to open several mining areas for investment in 2025. This initiative is aimed at attracting more investments to these sectors and generating added value to boost the national economy.
During his address to the Senate General Assembly, Badawi responded to two discussion requests from several Senate members. These discussions centered around the government’s strategy for utilizing and advancing mineral resources to enhance Egypt’s economy, as well as the ministry’s efforts to transform the Egyptian Mineral Resources Authority from a service-oriented entity into an economic one.
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Strategy development and focus areas
Badawi noted that the ministry’s team has formulated a strategy that builds on past achievements while addressing current needs. This strategy targets six key areas to ensure the provision of petroleum products to citizens at minimal cost. These areas include increasing production and intensifying drilling and exploration initiatives, optimizing refining and petrochemical infrastructure, and achieving a significant transformation in the mining sector to elevate its GDP contribution.
Restructuring energy mix
Furthermore, the strategy outlines plans to restructure Egypt’s energy mix in collaboration with the Ministry of Electricity and Renewable Energy, aiming to elevate the share of renewable energy to 42 percent by 2030. This transition will facilitate the utilization of natural gas in value-added industries and enable the exportation of surplus gas. Another critical component of this strategy underscores the importance of health, safety, environmental sustainability, and energy efficiency, aiming to cultivate a safe working environment that attracts investments and supports sustainability projects, particularly those focused on reducing carbon emissions.
Leveraging strategic location
Moreover, Egypt plans to leverage its strategic geographical position to enhance regional cooperation and optimize the use of its infrastructure. This includes forming partnerships with neighboring countries to capitalize on new discoveries and utilizing Egypt’s infrastructure for the import and re-export of Cypriot gas, or for domestic consumption, ultimately supporting value-added industries such as petrochemicals.
The strategy calls for robust collaboration among the ministry, government institutions, parliamentary councils (House of Representatives and Senate), and investment partners within the production sector.
Badawi also highlighted ongoing efforts to accelerate investments in the mining sector and maximize the added value of mining ores through legislative and legal reforms. These reforms aim to revise contract models to align with international mining standards, regulate financial systems, licensing, and organizational frameworks, and transform the Mineral Resources Authority into an economic entity.
Enhancing digital infrastructure
Additionally, the strategy emphasizes the enhancement of digital infrastructure through the establishment of a digital mining portal and the development of administrative and technical capacities via specialized training programs.
Egypt is endowed with abundant mineral resources, featuring confirmed geological reserves that can be extracted using advanced technologies. Badawi pointed out key ores in the North and South Eastern Desert and the Sinai Peninsula, such as phosphate, iron, lead, zinc, sulfur, kaolin, and coal. He also noted that 150 companies are active within Egypt’s mining sector, including eight international firms engaged in gold exploration and extraction.
Framework agreement for gold exploration
Furthermore, a preliminary framework agreement has been signed to facilitate investment in gold exploration, and a draft law has been introduced to amend mining agreements, particularly in exploration and prospecting, to make them more appealing to investors.
In closing, Badawi outlined the primary components of the 2025 work plan, which includes increasing production rates, intensifying research and exploration initiatives, optimizing refining and petrochemical resources, expanding the use of natural gas for households and vehicles, reducing the petroleum product import expenditure, and launching the digital mining portal to attract further investments into the sector.
Egypt’s $589.8 million initiative for industrial growth
In December 2024, Egypt launched a new initiative to support the private sector in acquiring machinery and production lines, announced by Deputy Prime Minister Kamel Al-Wazir and Minister of Finance Ahmed Kouchouk. The initiative allocates EGP30 billion (about $589.8 million) for businesses in key sectors such as pharmaceuticals, food production, engineering, chemicals, textiles, mining, and construction materials, with a focus on high-priority regions like Upper Egypt and the Suez Canal area. It offers subsidized financing at a 15 percent interest rate for five years, with maximum amounts of EGP75 million for individual companies and EGP100 million for associated parties. Additional interest rate reductions are available for companies that increase their local value added, and eligibility requires securing a construction license and completing construction. The initiative will be reassessed based on actual production increases and local industry localization.
