The Egyptian government is working with the World Bank to update its mining legislation, in the hope of drawing international investors to the country’s untapped gold reserves. The International Finance Corporation (IFC), the private arm of the World Bank, has been working with the government since last year on the new legislation, which is expected to see the sector move toward a greater emphasis on royalties and taxes, as well as a greater stream-lining of bureaucracy. According to Amgad Ghoneim, undersecretary for mineral resources, the new laws will be ready within the next three months. The current legislation requires foreign companies to enter into joint ventures and production sharing agreements with the government. The practice is common for the oil and gas industry, but makes gold exploration a risky business. Mineral deposits are harder to determine than oil and gas plots, making gold miners uneasy about entering into long-term agreements
