There is a media presentation on the website of Centamin, which explains the concession agreement with Egyptian government.  I find that the concession is a very good deal for CEE but not that good for a poor country like Egypt who has a per capita income of $6600 & has very limited natural resources. Lot of people live in poverty.

 

CEE recovers all the cost incurred.  No taxes / duties for 15 years plus option to extend that for another 15 years.  3 % Royalty & after that profit is split 50 %. In addition to that for a long time the oil was heavily subsided. The oil issue is now under dispute.

 

Contract is a contract but it was executed by very corrupt government who only looked after the own personal interest.

 

I do not think that agreement will hold for very long. From time to time this issue will be raised by Nationalist Egyptians till there is much better deal for Egypt or the whole mine is nationalized.

 

Most Egyptians would see this deal unfair or them & will like to have this mine nationalized. One day it will become a political national issue. Egyptians is different than other countries where they allow foreign companies to exploit their resources.

 

If CEE is smart they should seriously consider diversifying. It is a matter of few years either this mine will be nationalised or CEE interest diluted.