The Ministry of Petroleum and Mineral Resources announced the details of a deal in which AngloGold Ashanti has acquired Centamin, the sole owner of the Pharaonic Gold Mines Company, a partner of the Egyptian General Authority for Mineral Resources in the Sukari gold mine.
In a Wednesday statement the ministry explained that this deal has no impact on the Egyptian state’s rights in the Sukari gold mine or its revenues. The provisions of the commitment agreement issued under Law #222 of 1994 remain in full force and govern the relationship between the participating parties – the Egyptian General Authority for Mineral Resources and the Pharaonic Company.”
It clarified that the Sukari Gold Mines Company will remain the joint venture company and the operating company as is, without any modification.
The Sukari mine is managed by the Sukari Gold Mines Company as the operating company in accordance with the provisions of the concession agreements.
According to the statement, the Sukari Company is a joint venture, 50 percent of which is owned by the Mineral Resources Authority and 50 percent by the Pharaonic Gold Mines Company.
This acquisition will have no impact on the operating company.
This deal, which has been completed, is a commercial transaction between two global, publicly listed companies. Centamin is listed on the London Stock Exchange, and AngloGold Ashanti is listed on the New York Stock Exchange.
Subsequently, Egyptian approval was not required to complete this transaction, as the acquisition encompasses all of Centamin’s shares and all of its operations worldwide.
The statement mentioned that, “The presence of AngloGold Ashanti, which ranks fourth globally in the ranking of gold-producing companies, to operate and invest in the Egyptian mining sector is a global testament to the confidence of international companies in Egypt’s investment climate and a clear indication of the success of the state’s policy in attracting foreign direct investment. We expect more global companies to follow suit and operate in Egypt after this step.”
