Siko post throwback7 Oct 2020 18:50
This is a translation and link of an article on mining licenses Siko posted on September 14th:
The Ministry of Petroleum and Mineral Resources, represented by the Mineral Resources Authority, closes tomorrow, Tuesday, the door to submit a bid to prospect for gold and new associated minerals in Egypt, which is Global Bid No. 1 for the year 2020, which was specific to specific sectors in the Eastern Desert, and the application period was supposed to close Last July, the period for accepting applications was extended for 60 days due to the repercussions of the Corona virus.
An official source at the Ministry of Petroleum said that the authority has received several requests to obtain exploration licenses in the predetermined places, and that the coming period will witness the study of requests to decide the matter, in accordance with the new law and its executive regulations. It is expected that other companies specializing in the search for gold and associated minerals may participate in Bidding within the next few hours.
According to the conditions of the gold auction, the mining companies present in Egypt and wishing to participate in the auction can view the data packages for the auction in the operations room at the headquarters of the authority in exchange for 10% deducted from the value of the basic information package upon actual purchase.
The conditions of the auction require companies to submit two technical and financial envelopes, the first includes initial insurance of $ 20 thousand presented with a check payable through an Egyptian bank, to be increased to 50 thousand, to be paid within 15 days of the company receiving notification of its victory.
According to the conditions of the auction, the companies' offers will be differentiated on the basis of several factors, the first of which is the minimum technical commitment for the search periods, the submission of an irrevocable letter of guarantee of 10% of the financial commitment for the first search period, and the royalty rate with a minimum of 5% of sales according to the London Metal Exchange rates, The free participation rate for the Authority is at a minimum of 15% of the net income.
According to the bidding procedures, companies can apply for a package of sectors from the offered areas or for one sector only, provided that at least one information package is purchased as a prerequisite for participating in the auction.
The technical bidding offers will be evaluated and analyzed for each sector separately, and the research license is granted for a period of two years, which may be renewed for two periods, and it can also be renewed for a third period with technical justifications accepted by the Commission, provided that the company submits a renewal request at least 6 months before the end of the period.
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