Open-sector delivers: Shalateen and Saudi Gold Refinery reveal Eastern Desert roadmaps

The government confirmed the first awards under the new open-sector mining system at this week’s Egypt Mining Forum, with state-owned Shalateen Mineral Resources Company and Saudi Gold Refinery laying out competing and complementary plans for the Eastern Desert. EnterpriseAM was on the ground at the St. Regis New Capital as the announcements landed.

The new system drew 403 investment offers from 119 companies (including 14 foreign firms) for 118 exploration blocks since the system launched in June, Petroleum Minister Karim Badawi said at the forum’s opening. The wider offering covered 335 blocks across about 650 sq km, including 261 gold and 74 other mineral zones. The rolling system works differently from a traditional tender: once a company bids on a block, a 30-day competitive window opens, and awards are processed continuously rather than batch-announced. The forum marked the first aggregation of results since the system launched.

Five new zones

Shalateen is preparing to offer five new gold exploration zones before year-end, Vice Chairman and Managing Director Abd El Mageed Mohamed told us on the forum’s sidelines. The five zones — offered on a track separate from the open-sector system — span two areas in the south (Allaqi), two in the north, and one near the Eqat concession, Shalateen’s producing gold mine, which has already reached commercial output. Shalateen holds six other major concession areas.

Parallel to the zones: Shalateen is putting the final touches on phase one of its Dahmit Industrial Complex in Aswan, an EGP 350 mn project covering 1.4 feddans. Phase one, with an investment ticket of EGP 120 mn, includes integrated infrastructure, labs, and foundries for receiving and smelting gold, with 56 equipped units for small companies and artisanal miners. The goal is to bring informal milling operations scattered across villages into a regulated, environmentally safe framework under the company’s oversight, Mohamed says. The company is already planning to launch the second phase, which includes admin buildings and operational units expansion.

Afaq’s Romeit discovery: Shalateen’s partner Afaq Mining has completed the exploration phase at Jebel Romeit (west of Gabal Elba) and submitted a feasibility study after identifying a gold deposit, Mohamed says. The company reports approximately 305k ounces of gold at Romeit, supported by more than 39k meters of reverse circulation and diamond drilling — numbers likely pointing to mineral inventory rather than proven reserves. Afaq Chairman and Managing Director Mostafa El Bahr expects a formal commercial discovery announcement this month, with commercial production targeted within approximately four years. Preparations are under way to establish a joint operating company, he says.

The open-sector system

Saudi Gold Refinery confirmed it has submitted bids for seven exploration blocks under the current open-sector round, targeting areas near Al Baramiya, south of Marsa Alam. Deputy CEO Salman Al Othaim told EnterpriseAM the company has allocated USD 10 mn for the initial exploration and field survey phase, adding “we have plans to scale up to over USD 200 mn as projects advance to mine construction and operation.”

REMEMBER- The company’s entry marks a reset of earlier talks that collapsed. Saudi Gold Refinery had previously negotiated with Shalateen to jointly develop the Al Baramiya area, but the discussions broke down over contract structure. The Saudi firm wanted the royalty-and-tax (R&T) model now used in the open-sector bid system, while Shalateen was bound by its charter to production-sharing agreements. With Egypt’s formal shift to R&T terms under the open-sector framework, the company re-entered the market on its preferred footing. Al Othaim described the change as “a shift toward serious commercial business that benefits both the investor and the state.”

The company does not plan to build a refinery in Egypt, despite its specialization in gold refining, Al Othaim says. The strategy is to extract and export doré bars for refining at its facilities in Saudi Arabia — the same model used at the Sukari mine — unless legislation mandates local processing, he says. Al Othaim left the door open for partnerships with local players if a viable cooperation model emerges and said discussions are under way for interest exchanges between Saudi and Egyptian investors.

A reform years in the making

The forum closed a week that marked the first real-world test of Egypt’s mining regulatory overhaul. The sequence began with the 2020 executive regulations that scrapped mandatory profitsharing joint ventures and capped royalties at 20% — bringing Egyptian law in line with global norms. Amendments this year cut the state’s minimum stake from 25% to 10%, added a digital application portal, and turned the Mineral Resources and Mining Industries Authority into an economic entity with a one-stop shop for investors. The government is aiming for mining’s share of GDP to reach 5-6% by 2030 (from under 1% today), with gold output rising to 800k ounces annually and USD 1 bn in yearly mining investment.

What’s next: We will watch for Afaq’s commercial declaration this month, Shalateen’s planned international tender for its five zones before year-end, and the next wave of open-sector awards as the rolling 30-day windows close. Al Othaim is also waiting: “Once we obtain the license, we will begin field operations within six months.”