First time I've seen interview with El Raghyhttps://menafn.com/1098159877/Egypt-Mineral-Wealth-Law-terms-of-gold-exploring-do-not-attract-investors-AL-Raghy
Sounds like fair comments here!
Q: Then, from your perspective, which is the most appropriate system to control gold mining in Egypt? A: If the government approved the ‘taxes and rent' system which allows the investor to benefit from the entire production of his concession versus paying the required taxes and the rent of the concession, it will pave the way to welcome not less than 200 new companies and investments. Neither profit sharing nor production sharing boosts the gold mining industry in Egypt. These systems are suitable for the petroleum sector, and do not suit the gold mining sector.
Q: And until then Egypt will not experience a real gold mining industry, do you agree with that? A: Al Sokari will remain the one and only productive gold mine and Centamin will be the one and only investor in this industry in Egypt if the current law still adopts such terms. Actually the current law is very bad, and completely hurts the mining industry. It needs to be entirely amended if the state really wants to establish a genuine mining industry, especially in the gold mining sector.
Q: For Al Sokari mine, how does Centamin introduce a successful model to establish a gold mining industry? A: Our project succeeded to set a standard for industrial safely and environmentally friendly for the first time in this industry in Egypt. In addition, the government has earned from Al Sokari production till now over than $360m, including ante up $122m as royalty fees and $238m in advance on the account of profits. Furthermore, the national treasury collects about EGP 9m per month as taxes and insurance fees, recorded EGP 600m by the end of December 2018. That illustrates how Al Sokari is an important income resource for the state and how this industry is significantly profitable.
Q: How does Egypt's economy make use of such a project? A: All of AL Sokari's gold sales estimation which is worth $ 4.4bn were transferred to the bank account of Al Sokari gold mines to boost the Egyptian economy. In addition, we signed an agreement with the Central Bank of Egypt (CBE) by the end of 2016 to provide the project's need of local currency with about a monthly EGP 50m, and in return, Al Sokari has to recover this amount with its equivalent in dollars through gold slugs. This action is to increase the gold reserves in CBE in this critical phase and also to enhance the national economy, and based on that we transfer about 1,000 tons of gold were shipped till last January.
Q: What are the estimated reserves of gold ore in Al Sokari? A: About 13m ounces, estimated to be produced within 30 years since the beginning of exploring the project.
Q: And what is your company's performance in this regard? A: Well, operating expenses for the producing of gold recorded over $2.6bn, while investment costs exceeded $1.3bn. Actually 58% from this cost was injected into the Egyptian market. Also the gold imports from Al Sokari shape 2% of Egypt's exports.