Phosphate to add to Egypt mining mix

Cairo-based Genesis Mining sees its decision to invest up to US$930 million in New Valley phosphate mining and beneficiation as being part of an important new phase in the evolution of the country’s mining industry.

“This strategic project represents a transformative step toward maximising the value of Egypt’s phosphate resources through a fully integrated model spanning exploration, mining, beneficiation, processing and downstream phosphate industries,” the company said last month when executives sat down with Egypt government officials to sign a project memorandum of understanding.

“Genesis is committed to supporting Egypt’s vision for a modern mining sector that creates industrial value, enhances exports, strengthens local manufacturing and contributes to sustainable economic growth.”

The young company, only formed two years ago as part of a bigger resources and industrial conglomerate, wants to mine up to 20 million tonnes of phosphate a year to produce circa-four million tonnes per annum of phosphate concentrate. It is also examining sizeable phosphoric acid and fertiliser projects aimed at domestic and international markets.

Founder and executive chair Hassan Elemam described the foundation mining and beneficiation project as ambitious but part of a company vision that aligned with Egypt’s “accelerating mining transformation and investment opportunities”. As well as its phosphate plans Genesis has a mineral development portfolio encompassing industrial and titanium minerals.

“Egypt’s mining sector is entering a new era of growth and Genesis Mining is building a vision focused on transforming mineral resources into industrial value,” Elemam says.

“Through an integrated approach connecting exploration, mining, processing, manufacturing, logistics and export, Genesis is working to unlock the potential of Egypt’s mineral wealth and create sustainable value chains.”

Egypt’s minister of petroleum and mineral resources Karim Badawi said the proposed phosphate investment would contribute to a national plan to diversify Egypt’s economy and maximise the value of its natural resources. Mining growth was a top economic priority.

Badawi told an Egyptian Mineral Resources and Mining Industries Authority board meeting in June the sector was undergoing a qualitative shift supported by legislative, regulatory and institutional reforms implemented jointly by the government, parliament and the private sector.

“Egypt is moving ahead with reforms aimed at boosting investment in its mining sector, including the introduction of a new open-area licensing system designed to provide greater flexibility for investors and accelerate resource development,” he said.

The open-area system marked a significant shift in the management and utilisation of Egypt's mineral resources, with investors able to submit applications for exploration and exploitation rights at any time without being restricted to specific bid-round deadlines.

Canadian junior Aton Resources, which this month raised C$4 million to advance its exploration efforts in Egypt, says the Arabian Nubian Shield (ANS) flanking the Red Sea has become a major focus of modern mineral exploration.

“Both Egypt and Saudi Arabia have introduced new mining codes in recent years but Egypt has been hugely under-explored up to now,” the company says.

“An increased focus on modern exploration is already yielding results.”

Aton is focused on its Abu Marawat-Hamama gold project, about 200km north of the country’s banner Sukari gold mine, where it is looking to grow resources with a view to establishing a mine “over the medium term”. The project is said to host gold-equivalent indicated resources of 137,000 ounces and 341,000oz of inferred resources.

Egypt’s circa-15 tonnes of annual gold production continues to be dominated by Sukari, operated by gold major AngloGold Ashanti after its $2.5 billion 2024 acquisition of Centamin.

“Egypt wants mining to contribute 6% of GDP, up from less than 1%,” Aton CEO Tonno Vahk says.

“The new funding should help Aton advance Hamama in an Egyptian gold industry still largely dominated by Sukari, the country’s largest gold mine and one of Africa’s biggest.

“With over 1000 identified ancient gold mining sites in the Eastern Desert, a low-cost skilled workforce and operating environment, and a government that is focused on building its mining industry, Egypt is ready to become the next major gold producer.”

AngloGold Ashanti owns 50% of Sukari in an equal joint venture with Egypt’s government.

The company said earlier this year it planned to produce four million ounces of gold at Sukari between 2026 and 2035 after last year’s production came in at a record 507,000oz. Output in the first half of 2026 was 232,000oz. Production was set to rise sharply in the second half of the year as operations move into higher‑grade ore zones.

AngloGold Ashanti said it invested $262 million in the mine last year and paid about $53 million in royalties.

About 20km of drilling on Sukari brownfield targets was completed in the first half of this year.

AngloGold Ashanti is drilling a number of promising Eastern Desert regional and near-mine targets it sees as potential future Sukari satellites.

Badawi said the ministry was working to increase the mining sector's contribution to Egypt’s GDP by expanding exploration activities and attracting greater investment in mining and mineral processing industries.

He said the Egypt Mining Forum 2026, scheduled for September, would serve as an important platform for showcasing investment opportunities and recent sector reforms to leading global mining companies and institutions.

Badawi also underlined the importance of improving Egypt's competitiveness in global mining rankings as a “strategic objective that reflects the progress achieved by the sector and helps strengthen investor confidence, positioning Egypt as an attractive destination for mining investment and a regional hub for value-added mining industries”.