Striking gold

By Samir Sobhi

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Egypt used to produce gold in ancient times, as we all know. But gold mining in Egypt subsided over the years. Not anymore. For years now, geologists have been busy searching for gold in the south of Marsa Alam in the Red Sea. But recently they found rich mines at Gabal Al-Sokkari, 15 kilometres west of Marsa Alam.

Since November 2009, Egypt's hopes of becoming a major gold producer have risen. The gold mining company Faraoniya, which has just started producing bullion, says it expects to produce 250,000 ounces in the first year and 500,000 ounces in the second year.

If you ever thought oil was our main mineral resource, think again. Experts say that the Gabal Sokkari mine is one of the biggest 10 gold mines in the world. So far, nearly $350 million has been spent on developing the site. This sum was not spent only on mining, but on building houses, providing utilities, and bringing in a desalination station and a power plant. So far, there are over 1,200 workers at the site, including a few foreign experts.

The man in charge of the project, Essmat El-Ragihi, says that the gold reserves in the site may be as much as 15 million ounces, equivalent to $350 billion in today's prices. His company is now studying the possibility of creating the first academy for mining in Egypt. Students will be invited to enrol as of next year.

Red Sea Governor Magdi Qobeisi says that five new companies are now looking for minerals in the Marsa Alam desert, especially in the Hamsh area. The Bedouins of Marsa Alam are said to be pleased with the fast pace of development, as it has brought along with it clean water and electricity at last.

This week's Soapbox speaker is senior editor at Al-Ahram.