Petroleum Minister Sameh Fahmi said the process of exploring gold after a 50-year-suspension of the activity proves the success of the ministry's strategy for providing all forms of support to achieve optimal economic benefits from such a promising sector.
In statements during a tour of el-Sukari gold mines around southern the Red Sea city of Mersa Alam Monday, the minister said the gold production sector is known for the high value of its revenues which would in turn contribute to achieving economic and social development in the South Valley.
During the tour, the Petroleum Pinister inspected exploration works at Gabal el-Sukari, some 30 kilometers south of Mersa Aalam.
The company in charge of the exploration process put gold reserves from el-Sukari area at 13 million ounces, with a value of 13 million dollars, according to current prices.
Production at el-Sukari gold mines is set to kickstart by the end of the year with an average production of some 200,000 ounces at the first year, to increase to 600,000 ounces annually.
Investment costs at the area are estimated at 310 million dollars, said the minister noting that the place has generated 4,000 job opportunities.
Gold findings at large quantities in el-Sukari mines contributed to the success of the first international bidding on gold exploration in Egypt under the terms of a Production Sharing Agreement (PSA) system, he added.
Major General Mohammed Magdy el-Qobessy, Governor of the Red Sea, accompanied Fahmi during the tour.
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