19/08/2026 03:48 AST
The Saudi Gold Refinery Co. has applied for exploration licenses in areas offered by the Egyptian government in the Eastern Desert, according to the company's chairman, Suliman Al-Othaim, in statements to Asharq Bloomberg.
Al-Othaim added that his company is looking to obtain a mining license and begin gold production before 2030.
Last July, the Egyptian government launched an international tender for gold and associated minerals exploration in 260 areas of the Eastern Desert under an open blocks system. This allows companies to submit their bids at any time without being bound by a single closing date, under an internationally accepted royalty and tax system.
Al-Othaim indicated that if the Saudi Gold Refinery Co. wins one of the licenses, it possesses the technical and financial capabilities to implement all phases of the mining project using its own resources, including exploration, development, and production. He explained that the company aims to develop mines in Egypt comparable in size and production to the Sukari mine.
Targeting more than 5 areas
Separately, an Egyptian government official, speaking to Asharq Bloomberg on condition of anonymity, said that the Saudi Gold Refinery Co. is targeting more than five areas in the bidding process.
He explained that the Saudi company is focusing on areas near Al-Baramiya, south of Marsa Alam in the Red Sea Governorate, because of the high gold concentrations in the area, according to geological studies.
He added that previous negotiations between the Saudi Gold Refinery Co. and the Egyptian government-owned Shalateen Mineral Resources Co. to enter into a partnership for gold exploration in the Al-Baramiya area stalled due to a disagreement over the contract model. The Saudi company insisted on applying a royalty and tax system, while Shalateen insisted on the production-sharing system stipulated in its bylaws.
The Saudi Gold Refinery Co. was established in 2008 and operates in the fields of exploration, prospecting, and extraction of precious metals, such as gold and silver. It has operations in more than 150 locations within Saudi Arabia, in addition to holding approximately 25 exploration licenses.
Developing Egypt's mining sector
The Egyptian government is intensifying its efforts to develop the mining sector, aiming to attract $1 billion in annual investments by 2030 and increase its contribution to gross domestic product as part of a strategy to maximize the utilization of mineral resources.
The government also aims to raise gold production to approximately 800,000 ounces annually by 2030, in addition to increasing the production of other minerals to 30 million tons annually.
According to a government document obtained by Asharq Bloomberg and published earlier, mineral production in Egypt increased by 36.3 percent during the 2024-2025 fiscal year, reaching 25.8 million tonnes. Gold production increased by 15.5 percent to approximately 554,900 ounces, and silver production rose by 8.7 percent to 84,700 ounces.
Egypt's current gold production is estimated at approximately 15.8 tonnes annually, most of which comes from the Sukari mine in the Eastern Desert, along with the Hamash and Iqat mines. The government is counting on new discoveries, especially those west of Gabal Elba, to support the growth of gold production in the coming years.
Asharq Bloomberg
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