Egypt’s Mining Sector: Legal Reforms and Investment Opportunities
Africa Focus
Sherif ElAtfyHead of Energy - Egypt,Corporate Commercial
Laila ElAtfyAssociate,Corporate Structuring
Egypt’s mining sector is undergoing a profound transformation, driven by a series of legal and regulatory reforms aimed at attracting international investment and unlocking the country’s untapped mineral wealth. For many decades, government policy focused overwhelmingly on oil and gas, leaving mining underdeveloped and burdened by outdated legislation. Today, however, this position is being addressed. By adopting new practices and reshaping its legal framework, Egypt is creating an investment climate that is more transparent, predictable, and competitive, offering new opportunities for both local and international companies.
This article outlines the principal features of the current legal regime governing mining in Egypt, examining the licensing process, fiscal framework, responsible mining obligations, dispute resolution mechanisms, and the geological and practical considerations that shape investment in the sector.
The legal foundation of the mining industry rests on Law No. 198 of 2014 as amended by Law No. 145 of 2019 (the “Mining Law”), together with its Executive Regulations. The 2019 amendments marked a decisive departure from the old production-sharing system, which had long deterred investors, and replaced it with
a royalty-and-tax regime that reflects international standards. This change has improved both clarity and competitiveness. Investors now benefit from concession agreements that provide well-defined financial terms, clearer procedures, and reliable access to international arbitration in the event of disputes. The government has also taken steps to publish model contracts and impose statutory timelines for regulatory approvals, giving investors greater certainty when assessing project viability.
Administration of the sector now lies principally with the Mineral Resources and Mining Industries Authority (“MRMIA”), which has succeeded the Egyptian Mineral Resources Authority (“EMRA”) pursuant to the most recent legislative amendment. Under this reform, all assets, rights, and obligations of EMRA have been transferred to MRMIA, along with the automatic transfer of EMRA’s employees under their existing financial and employment terms until new staff regulations are issued. The MRMIA continues to manage bid rounds, licensing, and compliance, operating as the central regulator for most minerals and thereby streamlining what was once a fragmented and cumbersome system. Although certain projects—particularly gold mining ventures in the Eastern Desert—may involve the Shalateen Mineral Resources Company, MRMIA remains the overarching authority. Its recent efforts to digitalize licensing procedures and geological databases have improved transparency and reduced delays, allowing companies to track applications online and conduct due diligence with greater ease.
Mining operations in Egypt follow a two-stage licensing process. Investors first obtain an Exploration License, which is granted for a period of two years and may be renewed subject to compliance with the approved work program. Applicants are required to provide a performance guarantee and an environmental management plan, both of which reflect the government’s focus on responsible exploration practices. The exploration phase authorizes companies to carry out surveys, mapping, and drilling to assess the mineral potential of their concession area. Where exploration leads to a commercial discovery, the license holder may apply for an Exploitation License. This license is valid for up to fifteen years and may be renewed upon application. Large-scale projects must also secure parliamentary approval, which gives them an additional layer of legislative certainty. Transfers and assignments of rights remain subject to MRMIA’S approval, but the process is now governed by clearer timelines and objective criteria, giving investors’ confidence that their rights will be legally recognized and enforceable.
One of the most significant reforms is the introduction of a fiscal regime designed to be both competitive and predictable. Investors are subject to a signature bonus, a royalty that generally ranges between five and twenty per cent depending on the mineral in question, an annual surface rent based on the size of the concession area, and the standard corporate income tax rate of 22.5 per cent. The total government share is capped, ensuring that projects remain financially viable and that investors are shielded from excessive fiscal burdens. To further encourage investment, Egypt provides additional incentives for projects that contribute to local value addition through refining, processing, or other downstream activities. These incentives may include exemptions from customs duties, preferential treatment under free-zone regulations, and tax relief. Such measures significantly reduce operating costs while also advancing Egypt’s policy objectives of stimulating local industry, creating employment opportunities, and facilitating technology transfer.
In line with global trends, Egypt has embedded environmental, social, and governance (ESG) obligations into its concession agreements. Companies are required to submit annual ESG reports, demonstrate the use of local content, and engage with local communities to ensure that mining activities contribute to sustainable development. Employment of local labor, community development programmes, and training initiatives are increasingly expected, alongside the adoption of international environmental best practices relating to water management, waste disposal, and land rehabilitation. The government has generally adopted a cooperative approach to enforcement, preferring to work with companies to resolve issues rather than imposing immediate sanctions. Nevertheless, compliance is essential, particularly as access to international financing now depends heavily on meeting robust ESG standards. Investors who implement strong ESG policies not only strengthen their social licence to operate but also improve their eligibility for project finance from both local and international lenders.
Under this reform, all assets, rights, and obligations of EMRA have been transferred to MRMIA, along with the automatic transfer of EMRA’s employees under their existing financial and employment terms until new staff regulations are issued.
Egypt has modernized its dispute resolution mechanisms to provide greater comfort to foreign investors. Concession agreements now typically provide for arbitration, ensuring that disputes can be resolved impartially and efficiently. Egypt is also a party to the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (“New York Convention”) and the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (“ICSID Convention”) and has concluded numerous bilateral investment treaties, which collectively guarantee protections such as fair and equitable treatment, protection against expropriation, and free repatriation of profits. Furthermore, stabilization clauses embedded within concession agreements help safeguard key financial terms—including royalties and tax rates—for the duration of the project. This significantly reduces the risk of sudden legislative or fiscal changes undermining the viability of long-term investments.
While the legal and regulatory reforms are critical, Egypt’s greatest strength lies in its geological endowment. The Eastern Desert is particularly rich in gold, copper, and other strategic minerals, much of which remains underexplored. Recent bid rounds have attracted strong international participation, with concessions awarded for gold, phosphate, and rare earth elements. The government is expected to launch further tenders, particularly in areas supported by promising geological data and existing infrastructure. Early engagement with MRMIA and careful preparation of bid documents are vital for success, and foreign investors often find that partnerships with local companies strengthen their bids and demonstrate a commitment to local development.
Despite the progress achieved, investors should be aware of practical challenges that accompany mining in Egypt. Environmental permits often require coordination with multiple authorities, and procedures may vary depending on the size and location of the project. Acquiring surface rights can involve negotiations with local communities, tribal leaders, or landowners, and cultural sensitivity is essential to building trust. Water availability is another significant challenge, particularly in the Eastern Desert, where projects may need to develop desalination facilities or alternative water supply solutions.
The addressing these issues proactively, through comprehensive environmental and social impact assessments and sustained community engagement, will help avoid delays and ensure smoother project development. Early planning and transparent stakeholder dialogue are indispensable for long-term operational success.
In conclusion, Egypt’s mining sector now offers one of the most attractive legal and commercial environments in the Middle East and North Africa. Through its updated Mining Law, competitive fiscal regime, strengthened ESG requirements, and modernized dispute resolution mechanisms, the country provides both opportunity and security to investors. Combined with its vast geological potential, particularly in gold and other critical minerals, Egypt is well positioned to become a leading mining jurisdiction in the region. For companies prepared to engage responsibly and navigate the regulatory framework, Egypt represents a market of considerable promise. First movers in particular stand to benefit from new exploration opportunities and can play a role in shaping the sector’s continued growth.
Nour & Partners in association with Al Tamimi & Company has extensive experience in the mining and natural resources sector in Egypt and the wider MENA region. We advise on licensing, compliance, and investment structures, and would be pleased to share our mining expertise with you and support your projects with confidence.
For further information,please contact Dr Sherif ElAtfy and Laila Elatfy.
Published in October 2025
