TABLE OF CONTENTS

CHAPTER PARTICULER NO. PART-I

1

PAGE NO

DEMOGRAPHIC ANALYSIS OF EGYPT

1 to 3

INTRODUCTION OF EYGPT LANGUAGE CAPITAL OF EGYPT THE RIVERNILE HISTORY

LOCATION OF EYGPT CLIMATE OF EYGPT

2 DEMOGRAPHICS ANAYLISIS OF EYGPT INTRODUCTION OF DEMOGRAPHICS DEMOGRAPHIC PROFILE OF EYGPT POPULATION OF EGYPT FERTILITY RATE CIA WORLD FACTBOOK DEMOGRAPHIC STATISTICS RELIGION EDUCATION HUMAN RIGHTS IN EGYPT FREEDOM OF SPEECH AND FREEDOM OF THEPRESS STATUS OF WOMEN:CONDITIONS FOR DETAINEES AND TORTURE:EMPLOYMENT UNEMPLOYMENT 4 to 17

PART-II MINING INDUSTRY AND ITS ROLE IN OF EGYPT

3

INTRODUCTION OF SECTOR EGYPT EGYPT MINING RESOURCES EGYPT MINING COMPANY/MINING PROJECTS ACTIVITIES IN MINING INDUSTRY IN EGYPT

COMPARATIVE POSITION OF SELECTED INDUSTRY WITH INDIA ANG GUJARAT OBJECTIVE MINING DEVELOPMENT IN EGYPT PRESENT RELATION IN MINING SECTOR WITH INDIA OPPORTUNITIES IN MINING SECTOR IN EGYPT POSSIBLE AREA FOR INVESTMENT IN MINERAL

INDUSTRY IN EGYPT PRESENT POSITION IN MINING SECTOR IN EGYPT EXTERNAL FACTORS IMPACTING THE MINING SECTOR BETWEEN INDIA AND EGYPT
5

POLICY AND NORMS OF EGYPT FOR MINING INDUSTRY NATIONAL MINERAL POLICY IN INDIA IMPORTANT MINERALS - THEIR LEASING POLICY PRESENT TRADE BARRIER FOR IMPORT/EXPORT

BETWEEN EGYPT AND INDIA. POSSIBILITES IN MININIG IMPORT/EXPORT IN EGYPT

6 7

CONCLUTION SUGGETION BIBLIOGRAPHY

CHAPTER 1 INTRODUCTION OF EYGPT

Founded more than 5,000 years ago, Egypt is fascinating for the lovers of ancient mysteries and wonders. It was the home to some of the most developed ancient civilizations.Officially, Egypt is known as the Arab Republic of Egypt. Spread over 390,000 square miles, Egypt, or the Arab Republic of Egypt, has a population of almost 80 million. Thus, it is the most populated country in the Middle East. The per capita nominal GDP is estimated at $6,347, which is quite high for the Arab region. Egyptian Pounds is the official national currency and is divided into 100 Piastres (currently - May 2007, one US Dollar gets you about 5.7 Egyptian Pounds). Even though Egypt was established a republic, it was under Emergency Law since 1967. In 2011, however, a mass revolution that influenced similar sentiments in the neighboring countries, resulted in the end of a 30-year-long dictatorship rule. The immigrant population has brought an influx of Greek, Armenian, and Italian. Egypt has been home to some of the worlds earliest civilizations, as well as the birthplace of written language and many of the important modern inventions. Ancient intriguing wonders like the pyramids of Giza, the Great Sphinx, the Hieroglyphs; and the ruins of Karnak, Memphis, the Valley of Kings draw a large number of tourists and researchers alike.Despite the countrys association with the oldest of wonders, the Egyptian economy remains very modern and developed among the entire Middle East region. Sectors such as industry, service, tourism and agriculture hold an important place. However, the strongest industries are based on oil, hydro power and natural gas.

1.1

LANGUAGE

:-

The official language is Arabic, but English is widely spoken in commerce and government While the official language is Modern Standard Arabic, the regional flavors of the language dominate among the people.

The official language of the Republic is Modern Standard Arabic. The spoken languages are: Egyptian Arabic (68%), Saidi Arabic (29%), Eastern Egyptian Bedawi Arabic (1.6%), Sudanese Arabic (0.6%), Domari (0.3%), Nobiin (0.3%), Beja (0.1%), Siwi and others. Additionally, Greek, Armenian and Italian are the main languages of immigrants. In Alexandria in the 19th century there was a large community of Italian Egyptians and Italian was the "lingua franca" of the city. Languages Egyptian Arabic Sa'idi Arabic Eastern Egyptian Bedawi Arabic Sudanese Arabic Domari Nobiin Beja % (68%), (29%), (1.6%) (0.6%) (0.3%) (0.3%) (0.1%),

The main taught foreign languages in schools are English, French, German and sometimes Italian.

Area: Egypt has a maximum length from north to south of about 1085 km (about 675 mi) and a maximum width, near the southern border, of about 1255 km (about 780 mi). It has a total area of 997,739 sq km (385,229 sq mi). Membership: Egypt is a member of the UN, OAU, the Arab League, OPEC and

Organization of the Islamic Conference

Official Name: Arab Republic of Egypt Currency: The unit of currency is the Egyptian pound. The Egyptian pound is written E, and is divided into 100 piastres. Egypt Time difference: GMT + 2 ( GMT + 3 in summer)

1.2

CAPITAL OF EGYPT :-

Cairo , is the capital of Egypt and the largest city in the Arab world and Africa, and the 16th largest metropolitan area in the world. It was founded in the year 969 A.D. making it 1,042 years old. Nicknamed "The City of a Thousand Minarets" for its preponderance of Islamic architecture, Cairo has long been a centre of the region's political and cultural life.

Pyramids and the Sphinx in Cairo

Nile at Cairo

1.3

THE RIVER NILE :-

The River Nile is about 6,670 km (4,160 miles) in length and is the longest river in Africa and in the world. Although it is generally associated with Egypt, only 22% of the Niles course runs through Egypt.

1.4

LOCATION OF EGYPT

:-

Most of the country lies in Africa. Officially the Arab Republic of Egypt, a country in north-eastern Africa bordered by the Mediterranean Sea to the north, Israel and the Red Sea to the east, Sudan to the south, and Libya to the west. The principal geographic feature of the country is the Nile River.

1.5

CLIMATE OF EGYPT :-

The climate of Egypt is characterized by a hot season from May to September and a cool season from November to March. However, the northern winds are a welcome respite and do a good job of keeping the temperatures slightly moderated. In the coastal regions, average annual temperatures vary from a maximum of 37 C to a minimum of 14 C. The most humid area is along the Mediterranean coast, where the average annual rainfall is about 200 mm. Rainfall decreases rapidly towards the south; Cairo receives on average only 25 mm of rain a year, and in many desert locations it may rain only once in several years.

CHAPTER 2 DEMOGRAPHIC ANALYSIS OF EGYPT

COUNTRY PROJECT - EYGPT

2.1

INTRODUCTION OF DEMOGRAPHICS :-

Demographics are the most recent statistical characteristics of a population. Commonly examined demographics include gender, race, age, disabilities, mobility, home ownership, employment status, and even location.

Demographic trends describe the historical changes in demographics in a population over time (for example, the average age of a population may increase or decrease over time). Both distributions and trends of values within a demographic variable are of interest. Demographics are about the population of a region and the culture of the people there.

2.1.1 DEMOGRAPHIC PROFILE OF EGYPT :Demographics of Egypt is very interesting. In Africa, the country of Egypt comes second in population. The population mainly settled near the River Nile. Egypt has been a center of ancient civilization of the world. In demographic terms, it was the third largest country in the Middle East after Turkey and Iran The rate of population growth in Egypt has fallen as it experiences demographic transition, along with many other countries in the Middle East and the developing world. Despite this the absolute annual increase in the population currently exceeds one million and the number of people reaching working age and entering the labor market each year is enormous. The increase in female participation in the labor force has been a major factor behind the decline in fertility, but it has also increased pressures in the job market According to the Peterson Institute for International Economics and other proponets of demog raphic structural approach (cliodynamics), the

basic problem Egypt has is unemployment driven by a demographic youth bulge: with the number of new people entering the job force at about 4% a year, unemployment in Egypt is almost 10 times as high for college graduates as it is for people who have gone through elementary school, particularly educated urban youth, who are precisely those people that were seen out in the streets during 2011 Egyptian revolution.

COUNTRY PROJECT - EYGPT

2.1.2 POPULATION OF EGYPT :The total population of Egypt according to a survey of April 2011 is 82,999,393. There are many ethnic groups who reside in the different parts of Egypt.

81,121,077 - 2010

Source: World Bank, World Development Indicators Egypt is the most populous country in the Middle East and the third-most populous on the African continent (after Nigeria and Ethiopia). People live in three major regions of the country: Cairo and Alexandria and elsewhere along the banks of the Nile; throughout the Nile delta, which fans out north of Cairo; and along the Suez Canal. These regions are among the world's most densely populated, containing an average of over 3,820 persons per square mile (1,540 per km.), as compared to 181 persons per sq. mi. for the country as a whole. Small communities spread throughout the desert regions of Egypt are clustered around oases and historic trade and transportation routes. The government has tried with mixed success to encourage migration to newly irrigated land reclaimed from the desert. However, the proportion of the population living in rural areas has continued to decrease as people move to the cities in search of employment and a higher standard of living
TABLE 1: POPULATION, 1980-2020 (MNS.)

COUNTRY PROJECT - EYGPT

Time Millions Increase % change

1980-85 1985-90 1990-95

19952000

2000-05f 2005-10f

20152020f

1980 1985 1990 1995 2000 2005 2010 2011

43.749 49.748 56.227 61.991 67.884 73.807 81.121 82.999

6.519 5.999 6.479 5.764 5.893 5.923 7.314 1.878

3.2 2.6 2.7 2.0 1.9 1.7 1.1 1

Population
90 80 70 60 50 40 30 20 10 6.519 0 1980 1985 1990 1995 2000 2005 2010 2011 5.999 6.479 5.764 5.893 5.923 7.314 1.878 43.749 56.227 49.748 Series1 Series2 61.991 73.807 67.884 81.121 82.999

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COUNTRY PROJECT - EYGPT

Crude rate/1000 birth

38.8

34.8

28.9

26.6

23.3

20.4

18.6

Death rate/1000 12.7 Population growth rate % Fertility Population increase, (1000s,annual) 1,200

9.6

7.9

6.8

6.1

5.7

5.7

2.57

2.45

1.95

1.82

1.67

1.43

1.26

5.06

4.58

3.80

3.40

2.88

2.36

2.10

1,295

1,154

1,179

1,184

1,091

1,033

Table 2: Population Trends, 1980-2020

Table 2 provides explanations for the changes noted above. The crude birth rate has fallen continuously, largely due to reductions in fertility. The sharp fall in the death rate, as a result of improvements in health, meant that the balance between the birth and death rates--the population growth rate-declined more slowly than the birth rate. Life expectancy increased which meant that the share of the elderly in total population rose. Infant mortality also declined from 115 deaths per thousand live births at the beginning of the 1980s to 65 at the end of the 1990s. Part of the decline in infant mortality was due to the fall in fertility rates and the increased period of time between births that resulted.

The balance is expected to change over the coming twenty years: birth rates are expected to continue decelerating while death rates remain fairly stable. Because the size of the population has increased, the lower population growth rate will barely affect the absolute numbers added to the population each year. In the period 198085, the average annual addition to the population was 1.2 million. In 2000-2005 it is forecast at 1.184 million--a fall of only 1.3 percent. In 2015-2020 the annual absolute increase is forecast at 1.033 million, only 14 percent less than in 1980-85.

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COUNTRY PROJECT - EYGPT

2.1.3 FERTILITY RATE :Total fertility rate: 2.97 children born/woman (2011 est.)

Definition: This entry gives a figure for the average number of children that would be born per woman if all women lived to the end of their childbearing years and bore children according to a given fertility rate at each age

Country 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Egypt 3.15 3.07 2.99 3.02 2.95 2.88 2.83 2.77 2.72 2.66 3.01 2.97

Table 3: Fertility Rates by Female Educational Level, 19952000 Uneducated Incomplete primary Complete primary, and partial secondary Secondary and above 5.69 4.74 3.68 2.99 20002005 5.03 3.98 3.01 2.91

2005-2010

4.57 3.72 3.07 3.00

The current fertility rate is well above that which would result in a stabilization of the population. Fertility rates are higher in Upper Egypt, especially in poor, rural regions. One third of the population and half of Egypt's poor live in Upper Egypt. It is also the area with the highest infant mortality rates, 36 percent above the national average. The fall in fertility has not translated into a lower absolute number of births. This is because the number of women of reproductive age (15-49) increased, from 25.7 percent of the total population in 1986 to 26.5 percent in 1996 and is forecast to go on rising until 2005 at least. Between 2000 and 2005 their number is forecast to rise by two million (see Table 4).

12

COUNTRY PROJECT - EYGPT In 1976, women accounted for 7.3 percent of the labor force aged 15 years and over. Ten years later this had increased to 9.1 percent; and in 1996, it reached 13.4 percent.(8) This is part of a trend that is evident in much of the Arab world and is of major significance. The fact that women increasingly went to work outside the home meant that they could not afford to have so many children. This was in part because the cost of maintaining children rose as welfare benefits were reduced under the impact of IMF and World Bank economic stabilization programs. It was also due to the need to maintain the real income of the family at a time when real earnings were falling. Women went to work in order to increase total family income; they had fewer children in order to increase income per family member. According to the International Organization for Migration, an estimated 2.7 million Egyptians live abroad and contribute actively to the development of their country through remittances (US$ 7.8 in 2009), circulation of human and social capital, as well as investment. Approximately 70% of Egyptian migrants live in Arab countries (923,600 in Saudi Arabia, 332,600 in Libya, 226,850 in Jordan, 190,550 in Kuwait with the rest elsewhere in the region) and the remaining 30 % are living mostly North America (318,000 in the United States, 110,000 in Canada) and Europe (90,000 in Italy). The country was host to many different communities during the colonial period, including Greeks, Italians, Syrians, Jews and Armenians, though most either left or were compelled to leave after political developments in the 1950s. The country still hosts some 90,000 refugees and asylum seekers, mostly Palestinians and Sudanese.

2.1.4 CIA WORLD FACTBOOK DEMOGRAPHIC STATISTICS :-

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COUNTRY PROJECT - EYGPT

Age structure :
0-14 years: 31.8% (male 13,292,961/female 12,690,711) 15-64 years: 63.5% (male 26,257,440/female 25,627,390) 65 years and over: 4.7% (male 1,636,560/female 2,208,455) (2008 est.) 0-14 years: 33% (male 13,308,407/female 12,711,900) 15-64 years: 62.7% (male 25,138,546/female 24,342,230) 65 years and over: 4.3% (male 1,546,774/female 1,818,778) (2010 est.)

Median Age : Total: 24.3 (2011 est.) Male: 24 (2011 est.) Female: 24.6 (2011 est.)

Population growth rate : According to the OECD/World Bank statistics population growth in Egypt from 1990 to 2008 was 23.7 million and 41 %.
Current growth rate is 1.96% (2011 est.)

Birth rate :
25.43 births/1,000 population (2010 est.)

Death rate :
4.82 deaths/1,000 population (2011 est.)

Net migration rate :

-0.22 migrant(s)/1,000 population (2011 est.)

Urbanization : urban population: 43.4% of total population (2010)

rate of urbanization: 2.1% annual rate of change (2010-15 est.) 14

COUNTRY PROJECT - EYGPT

Gander ratio : At birth: 1.05 male(s)/female under 15 years: 1.05 male(s)/female 15-64 years: 1.03 male(s)/female 65 years and over: 0.83 male(s)/female total population: 1.03 male(s)/female (2011 est.)

Infant mortality rate : Total: 25.2 deaths/1,000 live births Male: 26.8 deaths/1,000 live births Female: 23.52 deaths/1,000 live births (2011 est.)

Life expectancy at birth : Total population: 72.66 years Male: 70.07 years Female: 75.38 years (2011 est.)

Total fertility rate :

2.97 children born/woman (2011 est.)

Ratio of female : 1.017

Education expenditures : 3.8% of GDP (2008)

Children under the age of 5 years underweight : 6.8% (2008)

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COUNTRY PROJECT - EYGPT

2.1.5 Religion :-

Out of the total population, the percentage of the Egyptian is 89 %. The other ethnic groups of Egypt occupy only 1 % of the total population. Rest of the population is occupied by European people mainly of French and Italian origin. The religion followed by the people of Egypt is Islam. 90% of the population is Muslim dominated and the Coptic occupies only 10 %. Only a negligible percentage of the population is comprised of the Christians. An estimated 1 million people belong to the Greek Orthodox, Roman Catholic, Armenian, and various Protestant churches.

Muslim 90% (Mostly Sunni) Christianity 10%

Bah': fewer than 2,000 individuals (< 0.003%). Judaism: fewer than 200 individuals.

The ethnic groups in Egypt are:

Nubian (ca. 300,000 in 1996)

Berbers (ca. 5,000)

Beja (ca. 1 million),

Dom (ca. 230,000 in 1996) Greeks (ca. 400,000~ 18,000,000)

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COUNTRY PROJECT - EYGPT

2.1.6 EDUCATION :In 1966, illiteracy in Egypt was estimated at more than 70%; in 1995, it was 48.6% (males, 36.4%; females, 61.2%). For the year 2000, projected adult illiteracy rates stand at 44.7% (males, 33.4%; females, 56.3%). In 1952, primary schools had space for only about half the school-age children. However, marked progress has been achieved since then. By 1998 there were 7,499,303 students and 310,116 teachers in primary schools. At the secondary level, there were 4,385,938 students in general education, with 259,618 teachers. The pupil-teacher ratio at the primary level was 23 to 1 as of 1999. In the same year, 93% of primary-school-age children were enrolled in school, while 80% of those eligible attended secondary school. The Education Act of 1953 provided free and compulsory education for all children between the ages of 6 and 12. Preparatory schools offer three-year courses leading to a basic-education completion certificate, which is the entrance requirement for three-year courses in secondary schools. The curriculum was updated in 1995 and includes a greater emphasis on vocational training, as well as on physics and foreign languages. The general secondary education certificate entitles the holder to enter a university. A majority of primary-school graduates continue their education in preparatory, secondary, or vocational schools. A decree of 23 July 1962 provided free tuition at all Egyptian universities. The traditional center for religious education in the Muslim world is Al-Azhar in Cairo, which in 1983 celebrated 1,000 years of teaching as the oldest continuously operating school in the world. Al-Azhar offers instruction in three faculties and 14 affiliated institutes and maintains its own primary and secondary schools. There are a total of 13 universities, and numerous institutes of higher learning. Egypt's universities had a total of 850,051 students in 1996. Universities and equivalent institutions had a faculty of 38,828 in 1994. There is also the American University in Cairo, which offers a wide range of undergraduate and graduate courses, as well as an American school in Cairo and one in Alexandria. The American Research Center in Cairo is supported 17

COUNTRY PROJECT - EYGPT by US universities and museums. It was established in 1948 to encourage the exchange of archaeologists and other researchers in almost all fields of interest. Adult education, under the Ministry of Education, is increasingly important. Since 1993 the government conducted a campaign against illiteracy. Business firms are required to combat illiteracy among their employees. Recent university graduates are being hired to lead literacy classes, and armed forces recruits are also expected to teach. In addition, the government has set up 3,000 one-class schools to teach a nontraditional study plan. These schools are aimed at girls who are unlikely to attend formal schooling, and as a result, are likely to remain illiterate. The schools provide vocational training and lessons on income generating businesses, in addition to the more traditional classes in Arabic, religion, sciences and arithmetic. As of 1999, public expenditure on education was estimated at 4.7% of GDP.

2.2

HUMAN RIGHTS IN EGYPT :-

The state of human rights in Egypt remains poor due to repressive government policies and brutal government crackdowns.

2.2.1 FREEDOM OF SPEECH AND FREEDOM OF THE PRESS:The Press Law, Publications Law, and the penal code regulate and govern the press. According to these, criticism of the president can be punished by fines or imprisonment. Freedom House deems Egypt to have an unfree press, although mentions they have a diversity of sources. Reporters Without Borders 2006 report indicates continued harassment and, in three cases, imprisonment, of journalists. They place Egypt 143rd out of 167 nations on press freedoms.

18

COUNTRY PROJECT - EYGPT

2.2.2 STATUS OF WOMEN:The Ministry of Health issued a decree in 1996 declaring female circumcision unlawful and punishable under the Penal Code, and according to UNICEF the prevalence of women who have had this procedure has slowly declined from a baseline of 97% of women aged 1549 since 1995. According to a report in the British Medical Journal BMJ, "[t]he issue came to prominence...when the CNN television news channel broadcast a program me featuring a young girl being circumcised by a barber in Cairo. ...Shocked at the images shown worldwide, the Egyptian president was forced to agree to push legislation through the People's Assembly to ban the operation.". Despite the ban, the procedure continues to be practiced in Egypt and remains controversial.

2.2.3 CONDITIONS FOR DETAINEES AND TORTURE:According to the Egyptian Organization for Human Rights, 701 cases of torture at Egyptian police stations have been documented since 1985, with 204 victims dying of torture and mistreatment. The group contends that crimes of torture `occur in Egyptian streets in broad daylight, at police checkpoints, and in people's homes in flagrant violation of the people's dignity and freedom. A 2005 report of the National Council for Human Rights, chaired by former UN secretary-general and former Egyptian deputy prime minister Boutros Boutros-Ghali, cites instances of torture of detainees in Egyptian prisons and describes the deaths while in custody of 9 individuals as, "regrettable violations of the right to life." The report called for "an end to [a] state of emergency, which has been in force since 1981, saying it provided a loophole by which the authorities prevent some Egyptians enjoying their right to personal security.

2.3

EMPLOYMENT :-

Where will the jobs come from? Where have they been created in recent years? Table 2 gives the breakdown of employment by sector in 1988 and 1998. Agriculture was the largest single sector supplying an extra 1.2 million jobs. Next came the private, non-agricultural sector where employment increased by 1.7 million. The share of the state in total employment increased despite the liberalization and

19

COUNTRY PROJECT - EYGPT

privatization programs. The fall of employment in state owned enterprises was more than outweighed by an increase in that of the civil service. Table : Employment by Sector, 1998-2010 1998 (no. 000s) (%) Government State-owned enterprises Total state sector Agriculture Private sector, 2,974 19.0 2008 (no. 000s) (%) 4,794 23.9 2010 (growth %) 61.2

1,294

8.6

1,043

5.2

-19.4

4,323 6,643

27.6 42.4

5,837 7,817

29.1 39.0

35.0 17.7

non-agricultural Of which:

4,707

30.0

6,377

31.8

35.5

manufacturing, mining 883 & utilities Total 15,673

5.3

1,339

6.7

51.6

100.0

20,031

100.0

27.8

The Egyptian bureaucracy has expanded rapidly since independence. For instance, in the period 1988-98 alone, and despite reforms, the civil service grew rapidly from 2.974 million to 4.794 million while employment in the rest of the public sector fell from 1.349 million to 1.043 million. Courbage suggests that female employment replaced rental income (that earned from the sale of minerals and oil) throughout the Arab world. In Morocco, for instance, income from phosphates collapsed in 1975. In order to supplement its income, the government increased taxation and encouraged women to work outside of the home. In the years after 1975--more as a result of real economic incentives rather than just government propaganda--Moroccan women increasingly participated in the labor force and the demographic transition gathered momentum. As rental incomes (especially from oil) fell elsewhere in the Arab world in the 1980s and

20

COUNTRY PROJECT - EYGPT

1990s,the same patterns became apparent.(9) This was also true for Egypt when rental incomes declined in the 1980s.

2.3.1 UNEMPLOYMENT :Unemployment 9.4% (2009 est.)

Definition: This entry contains the percent of the labor force that is without jobs. Substantial underemployment might be noted.

rate:

9%

(2010

est.)

Source: CIA World Fact book - Unless otherwise noted, information in this page is accurate as of October 14, 2011

21

COUNTRY PROJECT - EYGPT

Unemployment rate 8.044 8.791 8.952 10.911 11.143 11.176 9.467 8.671 7.955 7.692 8.995 8.808 10.05 11.275 10.526 11.468 10.917 9.205 9.29 % 1.83 % 21.88 % 2.13 % 0.30 % -15.29 % -8.41 % -8.26 % -3.31 % 16.94 % -2.08 % 14.10 % 12.19 % -6.64 % 8.95 % -4.80 % -15.68 % Percent Change

Year

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

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COUNTRY PROJECT - EYGPT

2008 2009 2010 8.78 9.523 8.987 -4.62 % 8.46 % -5.63 %

Unemployment Rate
15 10 5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

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COUNTRY PROJECT - EYGPT

PART-II

MINING INDUSTRY AND ITS ROLE IN ECONOMY OF EGYPT

24

COUNTRY PROJECT - EYGPT

CHAPTER-3 INTRODUCTION OF SECTOR EGYPT

Mining in Egypt has had a long history that goes back to predynastic times. Egypt has substantial mineral resources, including 48 million tons of tantalite (fourth largest in the world), 50 million tons of coal, and an estimated 6.7 million ounces of gold in the Eastern Desert. The total real value of minerals mined was about E102 million (US$18.7 million) in 1986, up from E60 million (US$11 million) in 1981 The chief minerals in terms of volume output were iron ore, phosphates, and salt. The quantities produced in 1986 were estimated at 2,048, 1,310, and 1,233 tons, respectively, compared with 2,139, 691, and 883 tons in 1981. In addition, minor amounts of asbestos (313 tons) and quartz (19 tons) were mined in 1986. Preliminary exploration in Sinai indicated the presence of zinc, tin, lead, and copper deposits. Gold Interest has been shown in the southeast of Egypt where numerous ancient gold workings exist in banded iron formations and metavolcanics. The only active foreign company in Egypt is by Australian firm Centamin Egypt and the EGMSA. The Sukari project has a total resource of 37 Mt grading 1.46g/t for 1.66 Moz gold (using a 0.5 g/t cutoff). The Egyptian Government have issued Centamin the rights to develop the deposit. Centamin has a widening portfolio of interests in Egypt; apart from achieving 100% (up from 65%) of the Sukari project. Centamin has acquired several substantial gold and base metal projects. These are the Barramyia, Fawakhir and Semna gold prospects, each having the potential of hosting multi million ounce gold deposits and the Abu Marawat and Hamama gold and base metal massive sulphide prospects with good potential.

25

COUNTRY PROJECT - EYGPT Heavy Mineral Sands The Nile delta could become the source of heavy mineral sand deposits of ilmenite and zircon. Centamin and Kara Gold have an interest in Egyptian Pharaoh Investment (EPI) that are currently assessing the Rosetta heavy mineral sands project, located approximately 60km east of Alexandria. EPI have estimated that the Rosetta resource contains as much as 37 Mt of heavy mineral sands. Other Egyptian iron ore is mined in El Gedida area of El Bahariya Oasis in the Western Desert. The nearly 3 Mt/year produced from this deposit is destined for Hadisolbs Helwan Iron and Steel Works near Cairo. This production provides about three-quarters of Egypts demand. Although an importer of iron ore, several high-grade deposits have been identified to the southeast of Aswan.

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COUNTRY PROJECT - EYGPT

3.1 Egypt Mining Resources

Mining Industry of Egypt - Egypt has substantial mineral resources, including 48 million tons of tantalite (fourth largest in the world), 50 million tons of coal, and an estimated 6.7 million ounces of gold in the Eastern Desert.

Industrial and Mining Projects Council - Industrial and mining projects council welcomes visitors to its site which contain activities and services provided by it to participate in Egyptian industrial development by different researches, design, drawings, and engineering supervising needed for industrial and mining projects in Egypt.

Egypt Mining News - Egypt Mining News. Service for global professionals. Constantly updated news and information about Egypt.

Mining-Technology.com - The website for the mining, tunnelling and quarrying industries.

Egyptian Geological Survey and Mining Authority (EGSMA) - The Egyptian Geological Survey and Mining Authority (EGSMA) is the authority entrusted with the geological mapping of the country and to explore, discover and evaluate its mineral wealth
2500

The reserves of economic minerals

2000

1500

1000

2087 1437

500 214 Limenite Magnetite Hematite

81 Zircon

29 Rutile

72 Garnet

86 31 Monazite Sulphides

(in 1000 tons):

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COUNTRY PROJECT - EYGPT

3.2 ACTIVITIES IN MINING INDUSTRY IN EGYPT

Egypt's main mining activity revolves around the extraction of crude oil. The country is not a major producer of oil, and its reserves are small by regional standards. According to the EIU Country Profile for 2000-01, oil reserves were estimated at around 3.8 billion barrels in July 2000; in comparison, Saudi Arabia has over 260 billion barrels of proven and unproven reserves. Until 1998, Egypt produced an average of 880,000 barrels a day of crude oil, the majority of which was refined domestically, but production has steadily declined since 1998, mainly due to the depletion of the main oil fields. In July 1998, production reached 840,000 barrels a day, but had declined to 787,660 barrels a day in 1999. Despite declining production, however, oil remains a significant source of government revenue and export earnings. The decline in crude oil exports in recent years has been mainly due to rising domestic demand and depressed world oil prices in 1998. As a result, crude oil exports, which accounted for 55 percent of overall export earnings in 1992-93, accounted for only one-quarter of overall export earnings in 1998-99.

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COUNTRY PROJECT - EYGPT

3.3 Egypt Mining Companies / Mining Projects

Centamin Egypt Limited - Centamin Egypt Limited is a mineral exploration development and mining company founded in Australia. The Company operates the Sukari Hill Gold Mine in the Eastern Desert of Egypt. SMW Gold - SMW Gold is a junior exploration and mining company dedicated to development of economic, multi-million ounce deposits in Egypt

Contribution
35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 14.70% 15.80% 9.90% 3.80% 21.40% 32.70%

1.80%

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CHAPTER-4 COMPARATIVE POSITION OF SELECTED INDUSTRY WITH INDIA ANG GUJARAT 4.1 OBJECTIVE
Promote scientific exploration for expanding the mineral reserves in India to its full potential (onshore and offshore) Ensure globally best, fair, transparent, and efficient process for the mineral concession system Enable sustainable mining Address the needs of key stakeholders (States, industry, concerned Ministries and departments, local communities)

4.2 PRESENT RELATION IN MINING SECTOR WITH INDIA

Indian companies are going abroad and acquiring other firms with similar profiles and are also investing their assets overseas. From an offshore oil field in Australia to a steel company in Thailand, Indian companies are making their presence felt across the

globe. Keeping in view the increasing demand and the scarcity of resources in India, many Indian companies in the public sector are investing heavily in oil fields abroad. To meet the ever increasing demand of this industry's products, especially oil and petroleum products, some of India's state-owned oil firms, like ONGC, have already acquired stakes in oil and gas fields in Russia, Sudan, Iraq, Libya, Egypt, Qatar, Ivory Coast, Australia, Vietnam and Myanmar.

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4.3 MINING DEVELOPMENT IN EGYPT

The objective of the EGS Mining Development program is to increase the contribution made by the Egyptian mining sector to the growth and diversification of the national economy, reduce reliance on imported raw materials, and encourage safe and environmentally sensitive development of mining operations in Egypt. Carrying out pre-feasibility studies of mineral resource locations using extensive drilling campaigns and ore processing tests in the laboratory and on-site Advising on investment opportunities and market requirements for specific mineral commodities Consulting on all aspects of exploitation methods and infrastructure, including mine waste management, environmental impacts and after-use options Testing ores to refine processing methods and investigate new raw materials for industrial processes Compiling and publishing national mining statistics for Egypt including information on mine locations and reserves, and on source, consumption and demand for each commodity

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4.3 OPPORTUNITIES IN MINING SECTOR IN EGYPT

Held back by bureaucracy and a mining law that hasnt been updated since 1956, Egypts mines are expected to receive renewed attention under the Egyptian Mineral Resources Authoritys (EMRA) new chairman Fekry Youssef Mohamed, who has ambitious plans for the sector to grow. Mohamed said he expects the mining sector to constitute 5 6 percent to Egypts gross domestic product (GDP) over the next two to three years, up from its current contribution of only 1 percent. Egypt is rich in gold, silver, copper, phosphates and coal, among other minerals. Its mines date back to Pharaonic times when Egypt was a prolific gold producer. Gold production came to a halt between 1958 and 2007, according to the Ministry of Petroleums website. But in January 2010, Centamin Egypt, an Australian company listed on the London and Toronto stock exchanges, began production at Sukari Hill in the Eastern Desert. Only a handful of concession agreements have been signed since. Mohamed expects this to change with a new five-year master plan and an updated mining law that should come into force once a new government is elected. With a more attractive institutional framework, he aims to sign 25 concession agreements by 2012. He said the new mining law should create a win-win situation between the government and investors. The old regime had a different mentality now we facilitate everything for investors, Sukari has 14 million ounces of proven reserves; the goal is to increase this to 25 million ounces in the next five years. Eight mineral concession agreements were awarded to four companies between 2007 and 2008. The companies, with two concessions each, are: Canadas Alexander Nubia, the AngloGold Ashanti and Thani Dubai Mining joint venture, Cypruss Matz Holdings and Russias SMW Gold. As part of the agreements, the exploration phase is to last till 2012, after which these companies can sign a production sharing agreement with the government for a mine, Mohamed said. Egypt has a total of 120 mines, all of which were used by the Pharoahs of ancient Egypt. 32

COUNTRY PROJECT - EYGPT Mohamed also plans on new bidding rounds. In the fourth quarter of 2011, he will invite bids for exploring Egypts phosphate potential, and in the first quarter of 2012, a bidding round for gold concessions is due to take place. Egypts phosphate belt is in the Western Desert. New exploration in this area is expected to reach the Libyan border, and will be limited to producing phosphates for domestic use, the chairman said. In 2010, Egypt earned US$10 million from gold production, the result of a 3 percent royalty fee that the government gets from its production sharing agreement with Centamin, the largest gold producer in the country. Mohamed was keen to point out that this money goes directly into a Commercial International Bank account in Alexandria for the Sukari Gold Company, a joint venture between Centamin and the government. Profits, he said, have not been smuggled abroad, as some have suggested. Due to minimal production, Egypts gold is refined in Canada. We would like to refine gold in Egypt, but to build a refinery we need at least two to three producing mines. This will come soon after one or two concession agreements have an exploitation lease we can start to have this refinery, Mohamed said. According to press reports at the time, workers staged sit-ins to demand better pay, and called for the Australian company to be replaced by an Egyptian one. Blasting inspectors, who issue explosives and are required to be on site when Centamin blows up rocks at its mine, showed up late, or sometimes didnt show up at all.

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4.4 Possible Areas for Investment in Mineral Industry in Egypt

The following areas are open for serious investment in the mineral industry, me tallic commodities, in Egypt: 1) Mining and Mineral Processing of iron ores at: Uwaynat (Western Desert), Eastern Desert, Baharya Oases, and Aswan. 2) Integrated iron and steel industry. 3) Exploitation of ilmenite ores in the feasible areas. 4) Evaluation and exploitation of Beach Black Sands for their strategic hevy minerals. 5) Exploration, Mining, Processing, and Extraction of: gold, tin, tantalum, and niobium.

4.5 PRESENT POSITION IN MINING SECTOR IN EGYPT

In 2008, the Egyptian mining equipment market was $540 million with an annual growth of 40% over the last five years. The majority of mining equipment is imported from U.S., Europe, Australia, Russia, the Far East, while plastic pipes and abrasives used in this industry are manufactured locally. The U.S. market share currently is 40% percent and dominates the market for processing plants, and heavy-duty equipment such as drilling rigs, tanks, trucks, loaders, bulldozers, excavators, shovels and cranes. The local market is very receptive to U.S. equipment because of its excellent reputation and resale value. Egypt is also becoming a commercial producer of gold and has more than 40 mineral ores. Egypts rich land offers iron residues in Baharia Oasis and the Eastern Desert, Manganese, Gold, Titanium, Tungsten and Tin, Copper, Chrome, Phosphate, Talc, Sulfur, Gypsum, Quartz, Potassium and Sodium Acids, Glass Sand, precious stones and Ornament stones.

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COUNTRY PROJECT - EYGPT The Government is working on new legislation that will make Egypt more attractive to foreign investors who are interested in operating in the Egyptian gold mining industry. The current legislation requires foreign companies 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 without a comprehensive understanding of a block's potential. Under the current system, more than half of a company's revenues go to the Egyptian government.

4.6

EXTERNAL

FACTORS

IMPACTING

THE

MINING

SECTOR

BETWEEN INDIA AND EGYPT

Mining and metals sectors can play a critical role in the economic development, attracting investment and employment generation in the country. The demand for various metals and minerals will grow 4-5 times over the next 15 years (9-11% growth per annum) against a backdrop of globally dwindling and increasingly scarce resources. There will be huge demand for the metals in view of the rapid urbanization and growth in the manufacturing sector in India. The mineral sector needs to prepare for facing the challenges in view of increasing demand and reducing resources world over. With the mineral potential in India, the contribution of the mining sector in the GDP should aspire to increase from 2.3% currently to around 7-8% over 20 years. The mining sector needs to play a major role if India has to realize the potential growth of 9% per annum in the coming years. Development of the minerals potential could also help in mainstreaming the local communities (including tribal communities ) by sharing the economic benefits of mining related activities with them in a fair and equitable manner through mechanism that give them choices and enable them to adopt changes at a pace of their choosing . Most of the mineral potential areas are in the interior tribal areas of India , where the development is the lowest . 35

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CHAPTER-5 Policies and Norms of Egypt for Mining industry for import / export including licensing / permission, taxation etc
The Mining Policy Reform Project aims at increasing private investment opportunities in Egypts mining sector. The project team works closely with the Ministry, EMRA and other stakeholders of the countrys mining industry. Over the lifetime of 12 - 15 months, the project will cover three phases: Diagnostic/Assessment Re-design/Re-engineering Implementation

The following are the components under investigation during these phases: Legal & Policy Framework Fiscal Framework Institutional Structure of EMRA Administrative Procedures

. Following these reforms, IFC plansto assist the GoE in organizing a promotional conference A key feature of this project is to inject international best practice and hands on experience in countries that successfully implemented mining reform through international mining experts. The project will also engage the different public and private sector stakeholders through seminars and workshops during the different phases of the project to raise the general awareness in the public about these ongoing reform efforts.

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5.1 NATIONAL MINERAL POLICY IN INDIA

OBJECTIVES OF THE NEW MINERAL POLICY
(a) To explore mineral wealth of the State expeditiously by adopting modern exploration techniques particularly in the tribal, desert and remote areas. (b) To exploit mineral deposits by promoting adoption of mechanised and scientific mining with due regard to the conversation of minerals mines safety and environmental aspects. (c) Value addition through promotion of processing units and mineral based industries in the State. (d) To encourage export of minerals having export potential. (e) To promote development of human resources to meet the requirements of mining and mineral based industries.

The National Mineral Policy

(a) Thirteen minerals viz. Iron ore, manganese, chrome, sulphur, gold, diamond, copper,
lead, zinc, molybdenum, tungsten, nickel and platinum group of minerals have been deleted from the list of minerals which had earlier been reserved for exclusive exploitation by the public sector, These minerals are now open for exploitation by the private sector. (b) Foreign investment and technology will be encouraged. Ceiling on foreign equality in the mining industry has been raised to 50% in the equity of Indian companies engaged in mining activities. (c) Mineral and metal processing units which wish to develop captive mines to secure assured supplies of raw material will also be allowed foreign equity participation in the manner and to the extent already permitted to such processing units. a 37

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5.2 IMPORTANT MINERALS - THEIR LEASING POLICY

Leasing policy for certain minerals such as lignite, steel grade limestone, cement grade limestone, gypsum, base metal deposits, granite, marble, Kota stone, state stone, wollastonite and brick earth shall be as follows : (1) LIGNITE Search and exploration of lignite is the State during the last twelve years has resulted in the discovery of several lignite deposits in Bikaner, Nagaur and Barmer districts and a total of over 1000 million tonnes of this mineral has been proved so far. The important deposits of lignite are located at Palana, Gurha, Barsinghsar and Bithnok in Bikaner, Merta road and Kasnau-lgyar in Nagaur and Kapurdi, Jalipa and Giral in Barmer district.4 The State being power deficient, deposits of Palana, Gurha, Barsinghsar and Bithnok in Bikaner and Kapurdi and Jalipa in Barmer district have been reserved for power generation. (2) STEEL GRADE LIMESTONE Extensive deposits of steel grade limestone have been located near village Sanu in Jaisalmer district where total reserves of over 550 million tonnes have so far been proved. This is the most important source of steel grade limestone available in the country for the supply too various steel plants. M/s RSMDC and M/s RSMML have been appointed as State Government's agents to mine & supply S.M.S. grade limestone from two block sets out for the purpose. The State Government has decided, whereby, mining of SMS grade limestone Company, a company to be jointly formed by equity participation of Steel Authority of India Ltd. (SAIL), Hindustan Zinc Ltd., RSMDC and M/s RSMML. (3) CEMENT GRADE LIMESTONE Rajasthan in endowed with vast resources of limestone with estimated reserves of abut 7000 million tonnes. The important limestone bearing areas within the State are located in the districts of Chittorgarh, Bundi, Bhilwara, Kta, Nagaur, Pali, jaisalmer, Jodhpur, Jaipur, Banswara etc 38

COUNTRY PROJECT - EYGPT

. This policy has resulted in the establishment of 11 major, 27 medium and a large number of mini cement plants contributing about 10% of the country's total production of cement. The Government intends to continue this policy. Several major cement plants based on limestone deposits of Shambhupura, Gudia-Deoli, Kotra, Amli, Rass, Bilara, Nagaur and Jaisalmer areas are likely to come up in near future. (4) GRANITE Granite mining industry has so far been largely confide to the States of Andha Pradesh, Karnataka and Tamil Nadu, Recently. Granite mining has also started in Uttar Pradesh, Orissa, Madhya Pradesh and Rajasthan . In Rajasthan . In Rajasthan , a number of workable deposits of granite have been located in Jalore, Barmer, Sirohi, Pali, Ajmer, Jaipur, Sikar, Jhunjhunu, Dausa, Alwar, Tonk, Bhilwara, Rajsamand, Udaipur, Dungarpur, Banswara, Chittorgarh and Sawai Madhopur districts. The State Government has formulated a new policy for granting mining leases of granite over the plots delineated by the Department, with a view to ensure systematic mining through deployment, of proper machinery and equipment and to promote the export of processed granite. Under this policy , preferential allotment has been provided to entrepreneurs who have installed or who propose to install export printed processing units in a stipulated period. The existing size of granite plots shall be increased from 100m * 100m to 150m *150m or 2.25 hectares, This would further facilitate modernisation and mechanisation of granite mines. (5) MARBLE Rajasthan with the total estimated reserves of about 1000 million tonnes, contributes about 90% of the country's production of this decorative stone. Important deposits of marble occur in Nagaur (Makrana), Rajsamand, Banswara, Dungarpur, Udaipur, Sirohi, Jaipur, Alwar, Ajmer and Chittorgarh districts. About 10% of the Department's income deom rents and royalties is obtained from this mineral alone. 39

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5.3 PRESENT TRADE BARRIER FOR IMPORT/EXPORT BETWEEN EGYPT AND INDIA.

Insufficient exploration, Unattractive investment environment, Lack of a clear system for disposal of government prospected mineral ore bodies, Poor performance of State Directorates of Mining and Geology Perception of mining in terms of ecological & environment practices, Delays and uncertainty in the approval process, Inadequate supporting infrastructure and insufficient legislative framework (Act and Rules) and poor enforcement. Social issues are becoming more prominent and are likely to impose constraints on mining, if not addressed within a holistic framework. These areas out of a feeling that benefits from mining related activities are not flowing for local area development and in fact revenue generated from mining is channelized for development of other parts in the State. Investors are concerned about risk mitigation, transparent rules, government involvement, clear definition of rights and titles. Agreement structures built around oil and gas operations are also uncommon, not matching the experiences of the international mining industry in other mining countries around the world.

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5.4 POSSIBILITES IN MININIG IMPORT/EXPORT IN EGYPT

Sukaris production for 2011 is expected to be 200,000-210,000 ounces, though its target is to produce 250,000 ounces per year. Since 2010, it has produced more than 9 tons of gold in total. The uprisings that began in January and toppled former president Hosni Mubaraks regime did affect operations at Sukari. In the past few years, the Egyptian government has embarked on trade liberalisation at the unilateral, bilateral and regional levels. Tariff reforms in September 2004 cut the average weighted rate from 14.6 to 9.1 per cent, reduced the number of tariffs from 27 to 6 and abolished fees and surcharges. Egypt belongs to the Common Market for Eastern and Southern Africa (COMESA) and the Greater Arab Free Trade Area (GAFTA). It has also signed the Agadir Accord with Tunisia, Morocco and Jordan which liberalised trade among the four countries on 1 January 2005. An association agreement with the EU came into force on 1 January 2004. Egypt also has special relations with the United States under the Trade and Investment Framework Agreement (TIFA) and recently began negotiating with other bilateral partners such as Turkey and Russia.

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CHAPTER-6 CONCLUSION
Egypt has very good mineral resources, including 48 million tons of tantalite (fourth largest in the world), 50 million tons of coal, and an estimated 6.7 million ounces of gold in the Eastern Desert. Egypt is rich in gold, silver, copper, phosphates and coal, among other minerals. Its mines date back to Pharaonic times when Egypt was a prolific gold producer. Although Egypt is characterized by a very attractive geology, private sector exploration and exploitation activities, major mining companies do not consider Egypt as an attractive opportunity. To meet the ever increasing demand of this industry's products, especially in mining products they need some liberalization in tax and policy regarding minings. They have to also focus on manpower development and research in Mining products. If they focus regarding all this things than they can create Good market in mining industry. The mineral resources in Egypt are plenty. However, it could be multiples of the known reserves if the appropri-ate subsurface exploration technology is used. Extrapola-tion of the available geological data suggests that with some additional geological efforts, clear ideas could be obtained about new mineral findings and/or extension of the existing deposits. As has been presented above, the simple primitive mining and mineral processing tech-niques limit the production capacity and produce inferior quality products, which lead to waste of resource, high cost of extraction, and low quality product.

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CHAPTER-7 SUGGETION
Egypt is very rich in gold production. Egypt has substantial mineral resources, including 48 million tons of tantalite (fourth largest in the world), 50 million tons of coal, and an estimated 6.7 million ounces of gold in the Eastern Desert. Still it cannot create attractive market in mining industry. So there are some suggestions for improving and developing mining industry and create opportunities in trade between india and Egypt. There are below

Rework legislative framework to bring in transparency, investor confidence, sustainability concepts and better regulation. Enhance exploration activity particularly for base and strategic minerals and rare earths. Develop policy prescriptions and enabling environment to develop the mineral sector for base, noble and strategic metals and diamonds to the fullest. Develop a distinct Geoscientific role for the Ministry for focusing on fundamental, multidisciplinary and societal scientific issues. Creation of R&D institutions under an overarching frameworkfor coordinated work.

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BIBLIOGRAPHY
www.en.wikipedia.org www.mines.nic.in www.thaindian.com www.encyclopedia.com www.siteresources.worldbank.org www.jewishvirtuallibrary.org www.answers.com
WWW.wikipedia.org/wiki/Demographics_of_Egypt www.indexmundi.com/egypt/demographics_profile.html www.zawya.com/.../macrowatch.cfm

http://www.nationsencyclopedia.com www.frommers.com/d www.eximbankindia.com www.ida.gov.eg/ WWW.minerals.usgs.go www.findaminingjob.com www.afribiz.info www.mbendi.com

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COUNTRY PROJECT - EYGPT www.timesofindia.indiatimes.com www.nationsencyclopedia.com www.tasflowrance.com www.gcgf.org

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