Egypt to increase rental values for mines by 20,000%

June 5, 2014 3:14 am

Egypt’s petroleum ministry has received a draft law by Mineral Resources Authority (EMRA), which, if approved, will increase the rental value for mines by nearly 20,000%, Ahram has reported. Once the cabinet approves the draft law, the annual lease value for Egypt’s mines will be raised from EGP25 ($3.50) per sq km to EFP5,000 ($700), said EMRA head, Omar Teama. The draft law charges EGP5,000 per sq km annually in the exploration phase, and EGP10,000 ($1,400) in the extraction phase. It also allows the government to receive a royalty fee set at 10% of the miner’s annual production.