The Egyptian Mineral Resources Authority (EMRA) has inked a deal with the Canadian-based company Aton Resources to begin exploiting the gold ore and associated minerals in the Abu Marwat region of the Eastern Desert, according to a ministerial statement on Wednesday.

The contract was formalized following Aton Resources' commercial discovery of gold in the Hamama Gharb and Rodrin areas, covering 58 square kilometres within the Abu Marwat concession.

EMRA has also agreed with the UK-based company Akh Gold to explore gold in the Bir Asl and Jabal al-Mit regions of the Eastern Desert, encompassing an area of 350 square kilometres.

Notably, Akh Gold will begin exploring gold in Egypt after it won an international bid for gold exploration rights in several areas in the Eastern Desert.

“These agreements signify Egypt's determined efforts to intensify gold exploration endeavours and bolster its precious metal reserves,” said Minister of Petroleum and Mineral Resources Tarek El-Molla during the signing ceremonies.

El-Molla emphasized the importance of expediting gold exploration operations to achieve favourable outcomes.

He also highlighted Egypt's favourable investment climate, which has attracted foreign mining companies and encouraged greater mineral exploration.

Egypt boasts a rich history of gold mining, with around 270 gold sites distributed throughout the nation, including 120 active sites and mines from ancient times.

According to the World Gold Council, Egypt produces 15.8 tons of gold annually, most of which comes from the Sukari mine in the Eastern Desert.

Nagi Farag, advisor to the Egyptian Minister of Supply for gold affairs, said last week that gold reserves in Egyptian mines still amount to at least 25 million ounces (over 781 tons).

Recognizing the potential for further growth in the mining sector, the Egyptian government initiated several tenders for gold and precious metal mining throughout 2023.

El-Molla disclosed last week that the government plans to launch a new international bid for gold exploration in the latter half of 2024.