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MSA Group, partner see growth potential in Egypt’s growing mining industry

Datetime: 2021-11-19 15:12:12

 

The 82 exploration permits issued by Egypt to 11 junior and major mining and exploration companies, along with the country's underexplored, but promising, mineral resources and its location, bode well for the development of its mining industry and for its role as a mining exploration and services hub in the Middle East and North Africa region, mining consulting services multinational The MSA Group (MSA) and Egyptian partner Gold Pyramid Group (GPG) say.

The companies have formed a partnership, 

MSA-GPG, to provide a full range of mining services to mining and exploration companies operating in Egypt and have taken advantage of first movers advantage in a rapidly developing market with big potential.

GPG CEO Mostafa Talaat notes that, since its establishment in 2016, GPG has tried to capture as much of the mining services market as it could, but that the potential gap between supply and demand encouraged the MSA-GPG partnership to exist in order to provide provide world class services combined with in-depth local knowledge and logistical support

 

MSA Group MD Dr Ian Haddon adds that the MSA-GPG partnership also has the potential for expansion into neighbouring countries, including Sudan, and across North Africa.

"Egypt is a prospective destination and, apart from the gold deposits that are known to occur, MSA Group and GPG believe base metals, critical metals and rare earth element deposits will be discovered. While the initial attention of mining and exploration companies is on gold, we do expect the industry to expand into other metals once these deposits have been better defined and are better understood," he says

 

 “The first round of bids for exploration rights has resulted in an increase in the number of companies exploring in the country from three or four to more than 11, with more companies expected to be added to the list after the second bid round award," says Talaat.

 

There are already visible early-stage investments in, and developments of, the mining industry, with certain new entrants establishing bases and laboratories in Red Sea Governorate to support exploration and, potentially, new mining operations.

“This has already had a positive impact on businesses and development in towns along the Red Sea coast,” notes Haddon.

 

Talaat concurs, adding the infrastructure that has been developed, and government plans and projects for further infrastructure development, has resulted in lots of activity taking place, with some supporting industries (mining equipment such as mining lamps ) experiencing a boom.

 

Given the demand for services and the prospects for the discovery of new deposits and growth of the mining industry within Egypt, as well as potential addressable markets in the region, MSA Group believes its partnership with GPG will be long-term and beneficial for the companies and their clients, says Haddon.

"This is the beginning of the journey and we will be able to support further investments into Egypt with our partners GPG," he says.